Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury handbag maker Coach (NYSE: COH ) has earned a respected four-star ranking. Although five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Coach's business and see what CAPS investors are saying about the stock right now.
Coach facts
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Headquarters
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New York City
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Market cap
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$9.6 billion
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Industry
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Apparel, accessories, and luxury goods
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Trailing-12-month revenue
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$3.18 billion
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Management
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CEO Lew Frankfort,
COO Jerry Stritzke
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Return on Equity (average, past three years)
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42.7%
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Competitors
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Guess? (NYSE: GES ) ,
Fossil (Nasdaq: FOSL )
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CAPS members bullish on COH also bullish on:
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Apple (Nasdaq: AAPL ) ,
General Electric (NYSE: GE )
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CAPS members bearish on COH also bearish on:
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General Motors (NYSE: GM ) ,
Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, 366 of 396 of the All-Star members who have rated Coach -- some 92% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include TMFdatabasebob and falcon2382, both of whom are ranked in the top 2% of our community.
In May, TMFdatabasebob reminded our community, "Every year since 2002, Coach has increased sales, cash flow, and earnings. It is easy to agree with the bear's growl that the credit crunch will stop Coach's growth. But -- fact is -- it hasn't."
A more recent pitch from falcon2382 last month shared that bullish feeling, elaborating on Coach's brand power:
This is one of the very best specialty retailers in the world -- literally. Management is extremely thorough, efficient, and timely with nearly all of their actions and the product is gaining world wide reputation of being classy, fashionable, and of top notch quality without having the connotation of being snooty. This is something other top-end luxury accessory retailers have a difficult time doing. Coach's recent push into China and its buyout of a major Chinese distributor will have a huge positive impact on bottom line moving forward. I am not bullish on retail, but I am on COH.
What do you think about Coach, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so why not get started?
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