Michael Kors Holdings Limited
) looks promising as the stock amassed a year-to-date return of
roughly 59.7%, riding on an impressive record of beating the
quarterly earnings expectations, robust sales growth and strong
demand for its brands and assortments.
Shares of this apparel, accessories, cosmetics and footwear
retailer touched a yearly high for the second time in a week's
duration. The shares hit a 52-week high of $84.58 on Dec 19,
2013, following a high of $83.91 reached on Dec 13. The stock
eventually closed trade at $83.92 on Dec 19.
Moreover, the company currently trades at a forward P/E of 29.6x,
a 59.1% premium to the peer group average of 18.6x. The company's
last traded price is 2.8% below the Zacks Consensus average
analyst price target of $84.62.
This Zacks Rank #2 (Buy) company boasts a history of beating the
Zacks Consensus Estimate. This global luxury lifestyle brand has
delivered positive earnings surprises in the last 8 quarters with
an average surprise of 44.9%.
In second-quarter fiscal 2014, the company posted strong
financial results with adjusted earnings of 71 cents per share,
up 44.9% year over year. The results also surpassed the Zacks
Consensus Estimate of 68 cents. Michael Kors' total revenue rose
38.9% to $740.3 million in the quarter.
The company provided a favorable outlook for the upcoming quarter
owing to rising demand for its products, especially watches. The
company expects third-quarter fiscal 2014 earnings in the range
of $0.83-$0.85, with full-year earnings likely to be in the
$2.77-$2.81 range. The long-term expected earnings growth rate
for this stock is 25.4%.
The encouraging results and a favorable outlook triggered an
upward thrust in the Zacks Consensus Estimate. For the third
quarter of fiscal 2014, the Zacks Consensus Estimate of 87 cents
increased by a penny in the last 60 days. For fiscal 2014 the
Estimate escalated 1.8% to $2.83 a share over the same time
Other Stocks to Consider
Some better-ranked retail stocks that look promising include
G-III Apparel Group Ltd.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
CONNS INC (CONN): Free Stock Analysis Report
G-III APPAREL (GIII): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
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