Capri Holdings (CPRI) Stock Sinks As Market Gains: What You Should Know
Capri Holdings (CPRI) closed at $60.03 in the latest trading session, marking a -0.6% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the luxury retailer had lost 4.25% over the past month, lagging the Retail-Wholesale sector's loss of 3.84% and the S&P 500's gain of 0.12% in that time.
Investors will be hoping for strength from Capri Holdings as it approaches its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, up 12.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $5.41 billion. These totals would mark changes of +181.05% and +33.23%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Capri Holdings. Recent revisions tend to reflect the latest near-term business trends. 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, 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. Capri Holdings is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Capri Holdings is holding a Forward P/E ratio of 11.31. This represents a discount compared to its industry's average Forward P/E of 12.12.
Investors should also note that CPRI has a PEG ratio of 0.35 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 was holding an average PEG ratio of 0.88 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 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CPRI in the coming trading sessions, be sure to utilize Zacks.com.
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