Why Coach Will Keep Rebounding
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury handbag maker has earned a respected four-star ranking.
With that in mind, let's take a closer look at Coach and see what CAPS investors are saying about the stock right now.
Coachfacts
Headquarters (founded) | New York, N.Y. (1941) |
Market Cap | $16.1 billion |
Industry | Apparel, accessories, and luxury goods |
Trailing-12-Month Revenue | $5.0 billion |
Management | Chairman/CEO Lew Frankfort President/COO Jerry Stritzke |
52% | |
Cash/Debt | $928.5 million/$22.6 million |
Dividend Yield | 2.1% |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 3,117 members who have rated Coach believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, TMFInnovator, tapped the stock as a particularly solid bargain opportunity:
Coach is on the clearance rack [these] days, which presents a great opportunity for patient investors.
Their international focus is paying off. Coach grew NA revenues only 1% last year, but China revenues 40%. ...I like the credibility of management. They controversially deployed capital straight through the recession (their $240MM of CapEx from Jun '08-Jun'09 was their largest annual spend on record, significantly). This move was opportunistic -- revenues shot back at a whiplash pace over the next three years.
Coach is continuing to invest in their business this year with focus on international operations. Critics continue to be skeptical, but I see it as another well-placed bet.
If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Coach may not be your top choice.
To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.
The article Why Coach Will Keep Rebounding originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coach. 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 Motley Fool has a disclosure policy.
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