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In the latest trading session, Tapestry (TPR) closed at $37.06, marking a +0.76% move from the previous day. This move outpaced the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the maker of high-end shoes and handbags had lost 9.39% in the past month. In that same time, the Retail-Wholesale sector lost 12.57%, while the S&P 500 lost 7.87%.
Investors will be hoping for strength from Tapestry as it approaches its next earnings release. The company is expected to report EPS of $1.18, up 2.61% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 17.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.51 per share and revenue of $6.6 billion. These totals would mark changes of +18.18% and +14.87%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Tapestry. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Tapestry is currently a Zacks Rank #2 (Buy).
Investors should also note Tapestry's current valuation metrics, including its Forward P/E ratio of 10.48. For comparison, its industry has an average Forward P/E of 11.95, which means Tapestry is trading at a discount to the group.
We can also see that TPR currently has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.