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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 $56.64 in the latest trading session, marking a +0.62% move from the prior day. This move outpaced the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.53%.

Heading into today, shares of the luxury retailer had lost 11.16% over the past month, lagging the Retail-Wholesale sector's loss of 9.72% and the S&P 500's loss of 6.58% in that time.

Investors will be hoping for strength from Capri Holdings as it approaches its next earnings release, which is expected to be February 2, 2022. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.47 billion, up 12.57% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.34 per share and revenue of $5.41 billion, which would represent changes of +181.05% and +33.23%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Capri Holdings. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Capri Holdings is currently a Zacks Rank #2 (Buy).

Investors should also note Capri Holdings's current valuation metrics, including its Forward P/E ratio of 10.54. 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.

Also, we should mention that CPRI has a PEG ratio of 0.33. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% 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.

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