Why Coach Is Ready to Rebound

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 coveted five-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

$16.6 billion

Industry

Apparel, accessories, and luxury goods

Trailing-12-Month Revenue

$5.0 billion

Management

Chairman/CEO Lew Frankfort (will step down in January 2014)

President/COO Jerry Stritzke

Return on Equity (average, past 3 years)

52%

Cash / Debt

$928.5 million / $22.6 million

Dividend Yield

2.3%

Competitors

Michael Kors Holdings 

Ralph Lauren

Tiffany

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

On CAPS, 94% of the 3,120 members who have rated Coach believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, fellow Fool Jason Moser (TMFJMo), tapped Coach as a particularly attractive value opportunity:

Still a very powerful brand in retail, plenty of international appeal and transformation into lifestyle brand should give it a longer lifespan. Change in management is a big question mark as Lew Frankfort is a major reason for the company's success to date and [chief creative director Reed Krakoff] leaving is also concerning. However [Stuart Vevers] should bring plenty of experience and a fresh set of eyes. The stock today isn't assuming much growth at all. Plenty of room to run.

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

After all, the retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.


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12/22/2014 11:17 AM
COH $36.49 Down +0.00 +0.00%
Coach CAPS Rating: ****

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