|Bid||20.33 x 2200|
|Ask||20.44 x 1800|
|Day's Range||20.25 - 21.17|
|52 Week Range||18.54 - 51.50|
|Beta (3Y Monthly)||1.12|
|PE Ratio (TTM)||9.19|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||1.35 (6.34%)|
|1y Target Est||29.26|
Tapestry, the parent company of Coach and Kate Spade brands, struggles with sluggish demand for its handbags. Yahoo Finance's Akiko Fujita and Heidi Chung discuss.
It was another largely downbeat earnings season for department stores, but Citigroup warns that those aren’t the only stocks that suffer from this ongoing trend.
Ahead of the G7 Summit in Biarritz, 32 global fashion and textile companies will collectively focus on environmental challenges and improving industry practices
Luxury brands could see sales in Hong Kong decline 10% to 60% compared to last year if protests continue through the end of 2019, Cowen data shows.
In a series of recent research notes, German financial giant Deutsche Bank weighs in on three stocks with excellent return potential – on the order of 30% or more. Let’s take a close look at each of these companies, and at Deutsche Bank’s bullish stance.VMware (VMW)This cloud-based software company has been making headlines recently with its interest in acquiring Pivotal Software (PVTL). San Francisco-based Pivotal specializes in cloud applications and development tools; from the standpoint of fit, an acquisition could make sense and benefit both companies. It may also bring benefits to Dell Technologies (DELL), which owns controlling stakes in both companies. VMware, however, brings approximately 80% of Dell’s annual income.Of the potential merger, VMware released a statement saying in part, “VMware regularly evaluates potential partnerships and acquisitions that would accelerate our strategy. Pivotal is a long-term strategic partner and we’re already successfully collaborating to help enterprises in their application development and infrastructure transformation.”Deutsche Bank’s Karl Keirstead, a 5-star analyst on TipRanks, takes a generous view of the proposed M&A move: “The strategic logic is there, as PVTL’s focus on containerized workloads and its leading position as a development platform for new cloud-destined apps fits with VMware’s desire to shift its mix to container and cloud-native infrastructure technology.”Keirstead goes on to rate VMW as a Buy with a price target of $190, indicating a 31% upside potential. He says, as his bottom line, “VMware shares look attractive for a 10%+ growth story making all the right moves to stay relevant in a cloud-centric world.”Where does the rest of the Street side on this software maker? It appears mostly bullish, as TipRanks analytics demonstrate VMW as a Buy. Out of 6 analysts polled in the last 3 months, all 6 are bullish on VMware stock. With a return potential of nearly 37%, the stock’s consensus target price stands at $199. (See VMW's price targets and analyst ratings on TipRanks)Palo Alto Networks (PANW)Palo Alto hasn't had a great month, with shares falling nearly 13%. But things aren’t as bad as they may seem, argues Deutsche Bank’s Keirstead.Palo Alto Networks is a Silicon Valley cybersecurity company developing advanced firewall and secure-cloud systems. Cybersecurity is a vital – and lucrative – business in our modern age of digital information, but recent report by IBM underlines it for those have not been paying attention: malware attacks are up 200% so far this year.While business is good, the combination of US-China trade complications and a strong US dollar are putting downward pressure of the 2H19 outlook. And continuing churn among upper management at PANW also has investors worried. The company took on a new CEO last year, and the Executive VP of Worldwide Sales recently announced his own departure for the end of September.Keirstead, in a review of PANW, takes note of the executive turnover, and says, “This level of Sales change, combined with the 2018 additions of a new CEO and President, is unsettling, but we haven’t picked up evidence of a material tone downtick on PANW fundamentals from our checks and we reaffirm our BUY rating.” He goes to say, in his bottom line, “We still lean bullish. Our unchanged PT [is] $275...” That price target implies an upside of nearly 40%.Keirstead’s outlook is in line with the analyst consensus on PANW -- Strong Buy. The stock has received 20 'buy' ratings in the last three months, compared to just 2 'hold' and 1 'sell' ratings. Shares are priced at $198, so the average price target of $266.86 suggests an upside potential of 35%.Tapestry (TPR)Originally Coach, the familiar maker of purses and other accessories changed its name and ticker symbol back in 2017. In its fiscal Q4 earnings report last week, TPR met the expected EPS of 61 cents per share. Net sales revenue, however, missed the target by 1%, coming in at $1.513 billion instead of the forecast $1.534 billion. The gross annual profit was $1.017 billion was up from one year ago, but gross margins contracted slightly to 67.3%. In short, the earnings release was a mix of good and bad news.The stock price dropped sharply after the quarterly report, from $25 to $21. However, Deutsche Bank sees the lower price as a buying opportunity for an otherwise strong company.In his research note, 4-star analyst Paul Trussell says, “The Coach brand sustained its international momentum and saw a sequential acceleration in North Americ, reassuring investors that the brand remains healthy with its FCF generating power intact.” Trussell’s $33 price target reflects his confidence – it suggests an upside of 57% for TPR stock.Overall, TPR gets a Moderate Buy rating from the analyst consensus, based on a near-even split: 10 of the stocks recent reviewers have rated it a Buy, while 9 say to Hold. However, even the low-ball price target is higher than the current share price, so it would seem that even the skeptics see potential here. With shares trading at $20.97, the average price target of $28.44 implies an upside of ~38%. (See TPR's price targets and analyst ratings on TipRanks)
The three major U.S. stock market indexes were up solidly on optimism for a U.S.-China trade deal as China took steps to boost its economy and Germany considers stimulus measures.
Are you having a hard time finding stocks to buy in this difficult economic environment? After a recent 800-point drop in the Dow Jones Industrial Average, I'm sure you are. One solution to bridge the gap between capital preservation, capital appreciation and income generation is to invest in dividend-paying mid-cap stocks. These are stocks with market caps between $2 billion and $10 billion. The great thing about mid-cap stocks is that they tend to be companies that are growing but that have a focus on the domestic economy. That keeps them somewhat insulated from the effects of a U.S.-China trade war.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now With dividend stocks, especially dividend aristocrats, which have increased dividends for 25 years straight, investors can find an even better solution. These stocks generate income in good times and bad, providing a decent return even when there's little upside potential.If you're looking for the best of both worlds, here are 10 mid-cap dividend stocks to buy now. Mid-Cap Dividend Stocks to Buy: Olin (OLN)Source: IgorGolovniov / Shutterstock.com Olin (NYSE:OLN) is a vertically-integrated global manufacturer of chemicals that include chlorine, caustic soda, bleach and many more. It's also known for Winchester, a large manufacturer of ammunition. Olin has three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. In the most recent quarter which ended June 30, all three segments saw a decrease in revenues. While it still makes money on an adjusted EBITDA basis -- $205 million in Q2 2019 vs. $325 million in Q2 2018 -- the company's long-term debt of $3.2 billion is 119% of its current market cap. As for dividends, it currently yields nearly 4.8% which is very attractive. OLN has plenty of free cash flow to continue paying it out to shareholders. Currently trading at 15 times its forward earnings, Olin is a good mid-cap value play. Embotelladora Andina (AKO.B)Source: Shutterstock Embotelladora Andina (NYSE:AKO.B), otherwise known as Coca-Cola Andina, has been producing Coca-Cola (NYSE:KO) products in Chile since 1946\. It also has operations in Argentina, Brazil and Paraguay. The company's American depository receipt currently yields 2.6%. Over the past five years, its payout ratio has varied from a low of 69% in 2017 to a high of 88% in 2018. Five Chilean families each own 20% of the holding company that controls Coca-Cola Andina through a 44.4% ownership stake. Coca-Cola owns 7.3% of the beverage company. In terms of market share, Coca-Cola has 63% of the Chilean soft drink market and 45% of the Chilean juice market. Within the four markets that it competes, it has a 65% market share of soft drinks, 31% of water and 42% of juices. Looking at its balance sheet, it has $850 million in net debt, which is a reasonable 29% of its market cap. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates You're not going to get capital appreciation like Amazon (NASDAQ:AMZN) but you will do well long-term buying AKO.B stock under $20. Tapestry (TPR)Source: Hi-Point / Shutterstock.com Tapestry (NYSE:TPR) is the parent company of both Coach and Kate Spade. It was already a beaten-down stock before it announced fourth-quarter 2019 results Aug. 15. Tapestry stock fell 22% on the news and is now down almost 42% on the year. Although its Coach brand delivered same-store sales growth of 2% in the second quarter, Kate Spade saw comparable store sales drop 6%. Since TPR acquired Kate Spade in September 2017, the brand has not generated a quarter with positive comps.It is not clear when Kate Spade's business will recover. In addition, the company said that due to Kate Spade, its profits for the year will be flat compared to last year.Like a lot of names on this list, Tapestry has to be considered a deep value play at the moment. In 2019, Tapestry still managed to generate $814 million in operating income from $6.03 billion in sales, despite a severe underperformance from Kate Spade. Equally important is the fact that Kate Spade's operating income was $187 million in 2019, just $10 million less than the previous year on a 7% decline in same-store sales.Down 42% on the year, I like its chances (unless there's a recession) of rebounding in 2020. Whirlpool (WHR)Source: Grzegorz Czapski / Shutterstock.com The U.S.-China trade war has not been kind to Whirlpool (NYSE:WHR), which has seen its volumes fall off a cliff due to a 12% increase in washing machine prices as a result of the tariffs on Chinese imports. President Donald Trump wants Whirlpool to create U.S. jobs, but knocking $500 million off its quarterly revenue as a result of these tariffs is not the way to go about it. According to the National Interest, Whirlpool and other foreign manufacturers have created 1,800 jobs since the tariffs went into effect at a cost of $800,000 per job. Despite the sales and profit declines due to the tariffs, Whirlpool's stock is actually up almost 26% year-to-date through Aug. 19. * 10 Cyclical Stocks to Buy (or Sell) Now A recent survey of appliance repair technicians found that Whirlpool has the most reliable washers, dryers and refrigerators as well as the second-most reliable stoves, ranges and dishwashers. Yielding 3.6% despite a big rebound in 2019, Whirlpool will pay you to wait out the tariff war. Vail Resorts (MTN)Source: Rosemary Woller / Shutterstock.com Just fitting in under the $10-billion ceiling for mid-cap stocks, Vail Resorts (NYSE:MTN) is up over 13% year-to-date through Aug. 19. The operator of ski resorts in the U.S. and Canada has an exemplary performance over the past 15 years -- it's delivered an annualized total return of almost 20% to its shareholders. It seems people can't get enough skiing. And Vail can't make enough acquisitions. In July, the company announced that it would buy 100% of Peak Resorts, the owners of 17 different ski areas in the northwest U.S. including Mount Snow in Vermont and Wildcat in New Hampshire. Vail paid $264 million for the 17 hills. That's nothing compared to the $1.4 billion CAD it paid for Whistler Blackcomb in 2016. As long as interest rates remain low, you can be sure MTN will continue to gobble up ski resorts around the world, creating a tremendous amount of cash flow in the process. Toro (TTC)Source: Ken Wolter / Shutterstock.com If you're a golfer, you've likely seen Toro's (NYSE:TTC) turf maintenance machines out on the golf course. Toro is the world leader in turf maintenance products. A few years ago, it got into the winter business buying Boss Snow Plows for $227 million. Toro is one of those companies that delivers for shareholders, yet tends to fly under the radar. Up 30% year-to-date through Aug. 19 including dividends, TTC stock has a 15-year annualized total return of 16.5%, which is almost double the U.S. total market over the same period. Recently, Toro announced a new strategy for its underground construction business which would see it combine its Ditch Witch, American Augers and Trencor businesses under one operating unit. By combining the three businesses, Toro will improve its marketing, sales and service while lowering the overall cost of providing these services. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What The company expects to generate $3.2 billion in revenue in fiscal 2019 with earnings per share of $2.90-$3.00 or 20 times its forward earnings. FactSet Research Systems (FDS)Source: Shutterstock Although FactSet Research Systems (NYSE:FDS) has a market cap of $10.7 billion, above the high-end for mid-cap stocks, most mutual funds and exchange-traded funds will still buy FDS because the $10-billion ceiling is more of a guideline than a hard-and-fast rule. FactSet, for those unfamiliar with the company, provides financial data and portfolio analytics to the investment community. Approximately 83% of its annual subscription revenue comes from buy-side clients including mutual funds and pensions. FactSet's having a strong year so far in 2019. It's stock is up 39% year-to-date. Over the past 15 years, it's averaged an annualized total return of 16.7%, far superior to the total market. In fiscal 2019, FactSet expects revenues of $1.43 billion with adjusted earnings of $9.85 per share. Both of these numbers are higher than its original guidance at the beginning of the fiscal year. In the latest quarter, FactSet's adjusted operating income jumped 16% to $105.7 million on a 7% increase in revenues. At 26 times its forward earnings, FDS stock isn't cheap, but in the long term, you're going to be happy you own it. Aqua America (WTR)Source: Elena Larina / Shutterstock.com Aqua America (NYSE:WTR) is a water utility providing services to more than three million people in eight states. Despite missing both its revenue and earnings estimates for the second quarter, Aqua America's stock has kept moving higher since its Aug. 6 report. Up 31% year-to-date, WTR stock yields a reasonable 2.1% while providing attractive capital appreciation. Over the past 15 years, it's achieved an annualized total return of 10.3%.Last October, Aqua America announced that it would pay $4.3 billion to buy Peoples Natural Gas, a Pittsburgh-based natural gas distribution company providing service to more than 740,000 customers in Pennsylvania, West Virginia and Kentucky. Once completed, the company will operate regulated utilities in 10 states serving more than five million people. * 7 Stocks Under $7 to Invest in Now With a second platform for growth, investors can expect double-digit returns over the next 3-5 years. Polaris (PII)Source: melissamn / Shutterstock.com At the end of July, Polaris (NYSE:PII) launched its 2020 lineup of side-by-side and ATV offerings, just in time for the company's 65th anniversary. In 2019, Polaris' bottom line has been hit by Chinese tariffs. Nonetheless, it still expects to generate at least $6.10 a share in earnings in the fiscal year, despite an increase in the Section 301 tariffs from 10% to 25%. On the top line, it expects sales to grow by at least 12% with its off-road vehicles leading the charge. In addition, the company's 2018 acquisition of Boat Holdings for $807 million has already added $367 million in sales through the first six months of the year against zero sales in the previous year before it entered the boat business. Polaris participates in a very cyclical business. While I like the company's overall portfolio of products and fully expect it to deliver for investors in the long term, you do have to have a buy-and-hold view in order to profit from PII stock. There will continue to be large peaks and valleys in its stock price. MSC Industrial Direct (MSM)Source: Casimiro PT / Shutterstock.com MSC Industrial Direct (NYSE:MSM) is an industrial distributor that provides more than 1.6 million products from over 100 branches and 12 fulfillment centers to customers in the U.S., Canada, Mexico and the U.K. In 2018, it had $3.2 billion in revenue, 10.7% higher than a year earlier. The company reported its Q3 2019 results July 10. It missed on both the top- and bottom-line sending its stock 7% lower in the month since reporting earnings. It's down 9% year-to-date. Overall, however, the company's results for the first six months of the year aren't horrible with revenues of $2.52 billion, 6.6% higher than a year earlier, on operating income of $309.5 million, 1% lower than in the first six months of fiscal 2018.MSM stock is instituting a three-part plan to improve sales, lower costs and increase profitability. Trading at 12 times its forward earnings, a much lower multiple than its historical average, MSM stock is a nice value play at the moment. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 10 Mid-Cap Dividend Stocks to Buy Now appeared first on InvestorPlace.
A visit to western Pennsylvania provides insight into how various retailers may be faring and also turns up a county fair controversy.
Investors were disappointed by Tapestry’s fiscal fourth-quarter earnings report and outlook for fiscal-year 2020, sending the stock down 22%.
Coach and Kate Spade parent company Tapestry Inc (NYSE: TPR) saw its stock lose nearly one quarter of its value Thursday in reaction to a poor fiscal fourth-quarter earnings report. The Kate Spade brand is suffering from a "lack of innovation" and the acquired brand isn't contributing growth, Tigress Financial Partners' Ivan Feinseth said. Kate Spate posted a "surprisingly big" decline in the quarter within the "very crowded and fickle" luxury goods industry.
(Bloomberg) -- Disappointing results at Tapestry Inc.’s Kate Spade line prompted a string of rating downgrades on the stock, with analysts saying a recovery may take several quarters.After sliding 22% Thursday to a 10-year low, Tapestry shares pared some of the losses to rise as much as 3.4% in New York on Friday.Here’s a round up of the analyst commentaries post-earnings.Credit Suisse, Michael Binetti“Kate outlook is now significantly reduced due to: 1) A big fourth-quarter same store sales miss; 2) Deteriorating near-term trends; 3) Elevated inventories which will pressure Kate same store sale and gross margin through fiscal 2020.”“With Tapestry offering few details on the timeline back to profitable Kate growth, we downgrade to Neutral despite the stock already pulling back significantly.”Downgrade to neutral from outperform, price target to $22 from $38.MKM Partners, Roxanne Meyer“Kate Spade’s outlook reflects a deterioration of trends that may take several quarters or more to repair.”“While we see limited downside risk to the stock from here, we don’t see a positive catalyst to give us conviction in material upside.”Downgrade to neutral from buy, price target to $21 from $52.Piper Jaffray, Erinn Murphy“While expectations weren’t lofty into this print, the magnitude of Kate Spade’s comp miss and quarter to date trends were far worse than expected.”“We see pressure on the channels that Tapestry sells into (outlets, mall) and prefer to wait for more consistent positive signs of Kate Spade brand momentum and product balance improving.”Downgrade to neutral from overweight, price target to $23 from $40.Telsey Advisory, Dana Telsey“Comp trends at Kate are deteriorating in the current quarter despite the full introduction of new creative director Nicola Glass’s product in full line stores by the end of June.”“While current valuation can offer some downside protection, we see the lack of clarity around the direction of the Kate brand and a second consecutive year of expected flat earnings growth as weighing on upside potential as we enter a more uncertain macro environment.”Downgrade to market perform from outperform, price target to to $22 from $42.(Updates stock move in second paragraph.)To contact the reporter on this story: Esha Dey in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Steven Fromm, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of the luxury brands maker rise despite the company's weak fourth-quarter results, lowered guidance and a bearish note from former industry bull MKM Partners.
Corporate America cheered President Donald Trump’s decision this week to delay tariffs on another round of imports from China, yet tension between the White House and Beijing is also disrupting a different kind of valuable arrival into the US. Tens of thousands of Chinese tourists are shunning the country as a holiday destination, and companies from Tiffany to Hyatt Hotels are counting the cost. Tourists from China hold special appeal for US business because of how much they spend.
U.S. stocks rose after investors got positive news on the U.S. consumer. Both the Dow Jones Industrial Average and the S&P 500 were modestly higher.