2-Star Stocks Poised to Plunge: Michael Kors?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, branded apparel and accessories company Michael Kors Holdings (NYS: KORS) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Michael Kors' business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Tsim Sha Tsui, Hong Kong (1981)|
|Market Cap||$10.4 billion|
|Industry||Apparel, accessories and luxury goods|
|Trailing-12-Month Revenue||$1.5 billion|
|Management||Chairman/CEO John Idol Honorary|
Chairman/Chief Creative Officer Michael Kors
|Trailing-12-Month Return on Equity||58.1%|
|Cash/Debt||$162.1 million / $27.7 million|
Donna Karan International
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 158 members who have rated Michael Kors believe the stock will underperform the S&P 500 going forward.
Michael Kors is a good brand and selling at prices that the average Joe can afford. That and the continued acquisition of floor space across retail stores indicates that it's gaining momentum. Further, 30% growth in Europe while Euro zone GDP fell 0.2% in Q2-2012 is testament to the brand's strength.
That said, I have seen this story before in the case of [Aeropostale]. That did not end well. Given [August 14th's] jump in the stock price, I am taking a short term bearish outlook to the stock until it reverts to mean market performance.
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The article 2-Star Stocks Poised to Plunge: Michael Kors? originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Aeropostale. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.