Kors in the stock market
Unimpressive financial performance has taken a toll on Michael Kors’ (KORS) stock market performance. Its shares have tumbled more than 15% to date.
In comparison, competitor Coach (COH) is sitting on YTD (year-to-date) gains of 35%, which is also among the best performances this year in apparel stocks. VF Corp (VFC) and PVH Corp (PVH) are also up 17% and 32%, respectively.
Michael Kors has also underperformed the S&P 500 Apparel and Accessories index, up 6.5%, as well as the S&P 500 Index (SPX), up 10.3%.
Wall Street on KORS and COH
KORS is covered by 22 Wall Street analysts. Together, they rate the stock a 3 on a scale of 1 (strong buy) to 5 (strong sell).
The majority of analysts, ~77%, suggest holding Michael Kors’s stock. Deutsche Bank, Morgan Stanley, and Evercore ISI Group are among the brokers with a “hold” rating. Of the remainder, 14% of analysts recommend buying the stock while 9% suggest selling it.
In comparison, Coach’s stock is rated as a 2 with 71% buy, 26% hold, and 3% sell recommendations.
Comparing target price and gain potential
Kors is currently trading at $36.44, ~46% below its 52-week high price. Analysts expect the company’s stock price to touch $37.40 over the next 12 months, which indicates an upside of ~3%.
Despite recording superb gains this year, Coach has a better upside. The company’s share price is predicted to jump another 8% over the next year.
ETF investors seeking to add exposure to KORS and COH can consider the First Trust Consumer Discretionary AlphaDEX Fund (FXD), which invests ~2% of its portfolio in the two companies.