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Tapestry (TPR) Dips More Than Broader Markets: What You Should Know

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Tapestry (TPR - Free Report) closed at $41.18 in the latest trading session, marking a -1.39% move from the prior day. This move lagged the S&P 500's daily loss of 0.87%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Prior to today's trading, shares of the maker of high-end shoes and handbags had lost 7.59% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.65% and the S&P 500's gain of 0.7% in that time.

Tapestry will be looking to display strength as it nears its next earnings release. On that day, Tapestry is projected to report earnings of $1.18 per share, which would represent year-over-year growth of 2.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.98 billion, up 17.62% from the year-ago period.

TPR's full-year Zacks Consensus Estimates are calling for earnings of $3.50 per share and revenue of $6.59 billion. These results would represent year-over-year changes of +17.85% and +14.76%, respectively.

Any recent changes to analyst estimates for Tapestry should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Tapestry is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Tapestry currently has a Forward P/E ratio of 11.92. This represents a discount compared to its industry's average Forward P/E of 12.13.

We can also see that TPR currently has a PEG ratio of 0.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Apparel and Shoes was holding an average PEG ratio of 0.97 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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