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Capri Holdings (CPRI) Dips More Than Broader Markets: What You Should Know

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Capri Holdings (CPRI) closed the most recent trading day at $56.50, moving -1.02% from the previous trading session. This change lagged the S&P 500's 0.97% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Heading into today, shares of the luxury retailer had lost 6.43% over the past month, lagging the Retail-Wholesale sector's loss of 5.18% and the S&P 500's loss of 0.78% 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. In that report, analysts expect Capri Holdings to post earnings of $1.67 per share. This would mark year-over-year growth of 1.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, up 12.57% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for Capri Holdings. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Capri Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Capri Holdings currently has a Forward P/E ratio of 10.69. For comparison, its industry has an average Forward P/E of 12.23, which means Capri Holdings is trading at a discount to the group.

We can also see that CPRI currently 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 0.87 at yesterday's closing price.

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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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