Tapestry (TPR) Gains As Market Dips: What You Should Know

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.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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