| Stock (Symbol) | Stock Price | |
Michael Kors (KORS) |
$94 |
|
| Data is as of | Expected to Report | Sector |
June 2, 2013 |
Aug 04 – Aug 08 |
Retail & Travel |
| Sharek’s Take | ||
 Michael Kors continues to drive higher, fueled be amazing growth overseas. Last quarter, sales jumped 54% as the company did more than $900 million during the qtr, beating the estimate by around $100 million. European sales surged 125% with same-store-sales bolting higher by 63%. North American sales increased 43% with a 21% jump in same-store-sales. In last quarter’s research report, the stock had a P/E of 32 and now the P/E is 24. When looking back at my prior research reports a 24 P/E has been around a low point fo the stock. KORS has great growth and is a good deal. Solid upside, as usual. |
||
| One-Year Chart | ||
 I thought KORS was going to breakout, but the stock’s been a little weak lately. The stock has the ability to breakout and make a big move higher considering profits have been growing better than 50% a qtr and the P/E is less than half that. |
||
| Earnings Table | ||
 Profits jumped 56% last quarter on a 54% increase in sales. These are great figures considering much of the North East US was under duress from Winter storms which kept customers away.KORS beat the street by 10 cents a share. Annual Profit Estimates continue to push higher, but to be frank I was more impressed with KORS’ results last quarter. I do like the P/E better now. Quarterly profit growth is expected to remain strong, and I think the company can beat these estimates and have 35% to 40% growth. |
||
| Fair Value | ||
 Michael Kors has great growth opportunity in Europe, where it has only 80 stores when I last checked. This brand can grow rapidly for another decade. I feel KORS is worth 40 times earnings, and with a P/E of 24 is cheap. This stock could double by next year. |
||
| Ten-Year Chart | ||
 KORS needed to base a bit after it jumped from $80 to $100 in February. Now the stock’s set and ready to move again. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 25 |
Michael Kors continues to click on all cylinders and is an excellent value at 24 times earnings. The company has great growth opportunity in Europe and I can imagine KORS having an amazing decade. Michael Kors is ranked 4th of 25 stocks in the Growth Portfolio Power Rankings and 4th of 12 stocks in the Aggressive Growth Portfolio Power Rankings. |
|
Aggressive Growth Portfolio
4 of 12 |
||
