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Capri Holdings (CPRI) Gains As Market Dips: What You Should Know

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Capri Holdings (CPRI - Free Report) closed at $64.46 in the latest trading session, marking a +0.7% move from the prior day. This change outpaced the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.2%.

Coming into today, shares of the luxury retailer had gained 8.55% in the past month. In that same time, the Retail-Wholesale sector lost 2.8%, while the S&P 500 gained 3.11%.

Investors will be hoping for strength from Capri Holdings as it approaches its next earnings release. On that day, Capri Holdings is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 1.21%. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, up 12.57% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $5.41 billion. These totals would mark changes of +181.05% and +33.23%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Capri Holdings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Capri Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Capri Holdings has a Forward P/E ratio of 11.99 right now. For comparison, its industry has an average Forward P/E of 12.27, which means Capri Holdings is trading at a discount to the group.

Investors should also note that CPRI has a PEG ratio of 0.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.02 as of yesterday's close.

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

The Zacks Industry Rank gauges the strength of our 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.

To follow CPRI in the coming trading sessions, be sure to utilize Zacks.com.


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