Michael Kors Holdings (KORS - Free Report) closed at $58.29 in the latest trading session, marking a +1.59% move from the prior day. This change outpaced the S&P 500's 0.63% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 1.04%.
Heading into today, shares of the luxury retailer had lost 13.84% over the past month, lagging the Consumer Discretionary sector's loss of 5.5% and the S&P 500's loss of 6.28% in that time.
Wall Street will be looking for positivity from KORS as it approaches its next earnings report date. This is expected to be November 7, 2018. The company is expected to report EPS of $1.09, down 18.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 9.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.02 per share and revenue of $5.14 billion. These totals would mark changes of +11.06% and +8.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for KORS. These recent revisions tend to reflect the evolving nature of short-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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. KORS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that KORS has a Forward P/E ratio of 11.43 right now. Its industry sports an average Forward P/E of 19.77, so we one might conclude that KORS is trading at a discount comparatively.
Also, we should mention that KORS has a PEG ratio of 1.81. 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. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% 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.