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Why Coach Will Keep Rebounding

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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, N.Y. (1941)

Market Cap

$16.1 billion


Apparel, accessories, and luxury goods

Trailing-12-Month Revenue

$5.0 billion


Chairman/CEO Lew Frankfort

President/COO Jerry Stritzke

Return on Equity (average, past 3 years)



$928.5 million/$22.6 million

Dividend Yield



Michael Kors Holdings 

Ralph Lauren 


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

On CAPS, 94% of the 3,117 members who have rated Coach believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TMFInnovator, tapped the stock as a particularly solid bargain opportunity:

Coach is on the clearance rack [these] days, which presents a great opportunity for patient investors.

Their international focus is paying off. Coach grew NA revenues only 1% last year, but China revenues 40%. ...

I like the credibility of management. They controversially deployed capital straight through the recession (their $240MM of CapEx from Jun '08-Jun'09 was their largest annual spend on record, significantly). This move was opportunistic -- revenues shot back at a whiplash pace over the next three years.

Coach is continuing to invest in their business this year with focus on international operations. Critics continue to be skeptical, but I see it as another well-placed bet.

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

To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

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Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

10/8/2015 4:02 PM
COH $31.45 Up +1.10 +3.62%
Coach CAPS Rating: ****