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Tapestry, Inc. (TPR) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Tapestry (TPR - Free Report) ? Shares have been on the move with the stock up 5.3% over the past month. The stock hit a new 52-week high of $51.59 in the previous session. Tapestry has gained 37.2% since the start of the year compared to the 20.4% move for the Zacks Retail-Wholesale sector and the 8.1% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 15, 2024, Tapestry reported EPS of $0.92 versus consensus estimate of $0.88.
For the current fiscal year, Tapestry is expected to post earnings of $4.47 per share on $6.71 billion in revenues. This represents a 4.2% change in EPS on a 0.53% change in revenues. For the next fiscal year, the company is expected to earn $4.64 per share on $6.9 billion in revenues. This represents a year-over-year change of 3.8% and 2.95%, respectively.
Valuation Metrics
Tapestry may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Tapestry has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 1.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Tapestry currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Tapestry meets the list of requirements. Thus, it seems as though Tapestry shares could have a bit more room to run in the near term.
How Does TPR Stack Up to the Competition?
Shares of TPR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Nordstrom, Inc. (JWN - Free Report) . JWN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Nordstrom, Inc. beat our consensus estimate by 29.73%, and for the current fiscal year, JWN is expected to post earnings of $1.89 per share on revenue of $14.78 billion.
Shares of Nordstrom, Inc. have gained 2.4% over the past month, and currently trade at a forward P/E of 12.02X and a P/CF of 3.22X.
The Retail - Apparel and Shoes industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TPR and JWN, even beyond their own solid fundamental situation.
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Tapestry, Inc. (TPR) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Tapestry (TPR - Free Report) ? Shares have been on the move with the stock up 5.3% over the past month. The stock hit a new 52-week high of $51.59 in the previous session. Tapestry has gained 37.2% since the start of the year compared to the 20.4% move for the Zacks Retail-Wholesale sector and the 8.1% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 15, 2024, Tapestry reported EPS of $0.92 versus consensus estimate of $0.88.
For the current fiscal year, Tapestry is expected to post earnings of $4.47 per share on $6.71 billion in revenues. This represents a 4.2% change in EPS on a 0.53% change in revenues. For the next fiscal year, the company is expected to earn $4.64 per share on $6.9 billion in revenues. This represents a year-over-year change of 3.8% and 2.95%, respectively.
Valuation Metrics
Tapestry may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Tapestry has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 1.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Tapestry currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Tapestry meets the list of requirements. Thus, it seems as though Tapestry shares could have a bit more room to run in the near term.
How Does TPR Stack Up to the Competition?
Shares of TPR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Nordstrom, Inc. (JWN - Free Report) . JWN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Nordstrom, Inc. beat our consensus estimate by 29.73%, and for the current fiscal year, JWN is expected to post earnings of $1.89 per share on revenue of $14.78 billion.
Shares of Nordstrom, Inc. have gained 2.4% over the past month, and currently trade at a forward P/E of 12.02X and a P/CF of 3.22X.
The Retail - Apparel and Shoes industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TPR and JWN, even beyond their own solid fundamental situation.