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 (TPR -2.16%) 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, N.Y. (1941)

Market Cap

$14.1 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)

50.9%

Cash/Debt

$858.7 million/$22.7 million

Dividend Yield

2.5%

Competitors

Michael Kors Holdings (CPRI -3.82%)

Ralph Lauren (RL 3.77%)

Tiffany (TIF)

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

On CAPS, 94% of the 3,000 members who have rated Coach believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star RockyMountainMan, tapped Coach as a particularly solid income opportunity:

Strong [free cash flow] that supports dividend increases. Currently around [30%] payout ratio so [Coach] can continue to increase the dividend which will put a floor under the stock. [Coach] will pay you while you (to the tune of 3% -- bonds anyone?) wait for the growth in China to kick in. Having a stellar balance sheet with virtually zero debt is what I like to see in companies I own. [Coach] is near the bottom range of its past P/E.

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