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.
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MICHAEL KORS (KORS): Free Stock Analysis
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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).