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Tapestry (TPR) Stock Moves -0.03%: What You Should Know

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Tapestry (TPR - Free Report) closed at $37.46 in the latest trading session, marking a -0.03% move from the prior day. This change was narrower than the S&P 500's 0.97% loss on the day. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, added 0.23%.

Coming into today, shares of the maker of high-end shoes and handbags had lost 8.45% in the past month. In that same time, the Retail-Wholesale sector lost 5.18%, while the S&P 500 lost 0.78%.

Investors will be hoping for strength from Tapestry as it approaches its next earnings release. The company is expected to report EPS of $1.18, up 2.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.98 billion, up 17.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $6.59 billion, which would represent changes of +17.85% and +14.76%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Tapestry. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 currently a Zacks Rank #3 (Hold).

Looking at its valuation, Tapestry is holding a Forward P/E ratio of 10.69. Its industry sports an average Forward P/E of 12.23, so we one might conclude that Tapestry is trading at a discount comparatively.

Investors should also note that TPR has a PEG ratio of 0.87 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.87 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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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