| Stock (Symbol) | Stock Price | |
Michael Kors (KORS) |
$99 |
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| Data is as of | Expected to Report | Sector |
February 27, 2013 |
Apr 28 – May 02 |
Retail & Travel |
| Sharek’s Take | ||
 Last quarter I felt Michael Kors (KORS) slowed from being a 60% grower to a 40% one. Then KORS wowed us with a stupendous Holiday season. The figures just jump off the charts.
KORS came through in a big way last quarter, and I consider it a rapid-grower once more. The only blemish is the stock has a 32 P/E now, in my four research reports last year the stock had a P/E of 24, 24, 27 and 23 respectively. Still, I do feel the stock is worth 42 times profits, so upside is still solid. |
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| One-Year Chart | ||
 KORS popped after it reported. I’m sure other money managers had taken the stock down a notch a qtr earlier on slowing growth (if you call 60% to 40% slowing) then got surprised by the good news. Estimates here look marvelous, and should get beat. The Est. LTG of 25% a year is too low, cmon guys. |
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| Earnings Table | ||
 Profits flew higher by 73% last quarter. Revenue growth was 59% as the company did $1 billion in sales, crushing the $850 million estimate.KORS clobbered earnings estimates by 25 cents, making a record $1.11 for the qtr and beating the old-high (set 2QtrsAgo) by 30 cents. Wow. Annual Profit Estimates jumped. Big time. Everything is clicking again. Quarterly estimates show rapid growth should continue. |
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| Fair Value | ||
 Last quarter I took my Fair Value P/E down from 45 to 38. This quarter I take it up to 42. I feel 45 is too much because KORS just had its Holiday season and that’s where it makes its most money. My estimates show this stock should still double by next year, and is an insane 62% under Fair Value now. |
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| Ten-Year Chart | ||
 The stock popped to a new high and is now a bit extended in the ten-year chart. Also, KORS ends its fiscal year March 31st, so we are still in 2013. That P/E of 32 is higher than it usually is, that might cause the stock to settle down a little. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 25 |
Michael Kors has such a good quarter that I contemplated putting it in the #1 spot in my Power Rankings. But I like the risk/reward in another stock better — and the P/E is much lower in that one. My research report on that stock is due out tomorrow. Michael Kors is the best retail stock and one of the best investments in my lifetime. It’s ranked 2nd in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
2 of 11 |
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