| Stock (Symbol) | Stock Price | |
Michael Kors (KORS) |
$72 |
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| Data is as of | Expected to Report | Sector |
November 7, 2014 |
Feb 02 – Feb 06 |
Retail & Travel |
| Sharek’s Take | ||
 Michael Kors is taking some flack because the company has same store sales growth slow from 24% to 16% last qtr, the lowest I think I’ve seen since the company went public. The stock’s around its 52-week low, but I feel it’s a real value and could bounce back like a rubber band. The company still had 41% profit growth last qtr and the stock has a P/E of only 17 (on 2015 est). I think the company will have 25% to 30% profit growth next year and my 2015 Fair Value is $96. The stock has to potential to gain 54% by 2016. The company is also buying back $1 billion of its stock. |
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| One-Year Chart | ||
 The stock hasn’t done good this year even though profits have zoomed higher. But KORS used to be a 60% grower that slowed to 40%, and maybe 25% next year. We’ll see. Still, what a bargain at 17 times earnings, I think the negativity is overdone. |
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| Earnings Table | ||
 Profits grew 41% as sales grew 43% for the second straight quarter. Sales are expected to climb just 28% this quarter.KORS beat the street by 12 cents but still the stock went down 8% after the company reported earnings. Annual Profit Estimates continue to grow. Quarterly profits are expected to grow 21% in each of the next two quarters. I think KORS will beat these estimates, and have 25% to 30% growth. |
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| Fair Value | ||
 Everybody is down on this stock, but that happens when a stock exits hypergrowth. Lots of funds only invest in the fastest growers and now that KORS is slowing down they are bailing on the stock. Still, upside is good. |
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| Ten-Year Chart | ||
 This stock is still trending up in the ten-year view. Nice annual profit growth. I think this stock should be appreciated more. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
9 of 22 |
Michael Kors is saying its being hurt by slower mall traffic, but either way growth is good and the stock should be higher. Maybe we get a bounce back after Christmas. Michael Kors is ranked 9th in the 22 stock Growth Portfolio and 11 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
9 of 12 |
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