Why Coach Is Poised to Outperform

Based on the aggregated intelligence of 180,000-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.

With that in mind, let's take a closer look at Coach, and see what CAPS investors are saying about the stock right now.

Coach facts

 

 

Headquarters (founded)

New York (1941)

Market Cap

$15.8 billion

Industry

Apparel, accessories and luxury goods

Trailing-12-Month Revenue

$4.9 billion

Management

Chairman/CEO Lew Frankfort

President/COO Jerry Stritzke

Return on Equity (average, past 3 years)

51.3%

Cash/Debt

$760.8 million / $23.3 million

Dividend Yield

2.2%

Competitors

Michael Kors Holdings (NYSE: KORS  )

Ralph Lauren (NYSE: RL  )

Tiffany (NYSE: TIF  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 2,767 members who have rated Coach believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Seattleldg, succinctly summed up the bull case for our community:

Coach has a big presence in China and is also growing domestically through their expanded men's line. Domestic growth has undoubtedly slowed in the last few years but the company has only had one down year in the last 7 (2009). The company has great margins, ROE and ROIC. When the US economy picks up, the company's growth and stock price should accelerate. In the meantime, you get a 2.2% [dividend yield].

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Coach may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.


Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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