) is slated to report its fourth-quarter fiscal 2013 results on
Jul 30, 2013. In the last quarter, it posted a positive surprise
of 3.7%. Let's see how things are shaping up for this
Growth Factors This Past Quarter
Coach posted better-than-expected third-quarter fiscal 2013
results attributable to the company's proven strategy of
investing in stores to enhance store sales productivity through
product innovation, compelling pricing strategy, new merchandise
assortments, and a cost-effective global sourcing model. The
company's long-term growth drivers include expansion of its
global distribution model and venturing into under-penetrated
Our proven model does not conclusively show that Coach is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. This is not
the case here as you will see below.
ESP for Coach is 0.00%. This is because the Most Accurate
Estimate stands at 89 cents, which is in line with the Zacks
Zacks Rank #4 (Sell):
Coach's Zacks Rank #4 (Sell) lowers the predictive power of ESP
because the Zacks Rank #4 when combined with 0.00% ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks That Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
The Gap, Inc.
), Earnings ESP of +1.70% and a Zacks Rank #1 (Strong Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #1 (Strong Buy).
Abercrombie & Fitch Co.
), Earnings ESP of +3.23% and a Zacks Rank #3 (Hold).
ABERCROMBIE (ANF): Free Stock Analysis Report
COACH INC (COH): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
NEW YORK & CO (NWY): Free Stock Analysis
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