Michael Kors Holdings Ltd. (NYSE: KORS) has been on a tear since coming public. The luxury apparel and accessories designer and retailer continually leads the same-store sales results from retail chains each month with massive gains, and its stock has been an amazing performer as it is now up more than 150% from its $20 IPO price from last December to around $52.00 now.
We also are seeing one call this morning with the expectation that shares will go even higher as its chart is on an uptrend.
Zacks Investment Research has a Zacks #1 Rating (Strong Buy) after a 70% earnings surprise on a 71% sales gain. The report noted, “This well-known global luxury brand is riding on the success of its multi-channel strategy, unique design and strong infrastructure.” Even with a forward P/E ratio of almost 37, Zacks says that the valuation premium is “justified and well supported by its long-term estimated EPS growth rate of 32.1%” as its return on equity of 33.0% (against 20.6% for peers) suggests that it actively and efficiently reinvests its earnings compared to its peer group.
Kors shares closed at $52.09 on Friday and the post-IPO range is 23.51 to $52.75. Keep in mind that the market capitalization is now $10 billion.
JON C. OGG
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
