Combining Value, Growth and Momentum
10x Stocks - Searching for multibaggers
  • Blog
  • Performance
  • Investment strategy
  • About

Michael Kors (KORS) and it's value

7/25/2014

0 Comments

 
Michael Kors is  global luxury lifestyle brand led by a renowned and award-winning designer Michael Kors. The company has successfully expanded beyond apparel into accessories (including handbags, small leather goods, eyewear, jewelry and watches) and footwear, with a presence in 74 countries.
Picture
The company's sales and profits shot up like a rocket along with rising margins. In the recent year, they posted 51% growth in sales and a 66% rise in profits. The stock currently holds a Zacks Rank 2, and is known for positive earnings surprises. EPS estimates have increased from 3.82 90 days ago to 3.92 now. Analysts are predicting 24% EPS growth for the next 5 years.

Valuation

Using the 24% growth rate for valuation, with 12% for years 5-10, I arrived at the following value:
Picture
KORS appears to be reasonably valued at current levels. If it can achieve higher growth rates, it's definitely worth more, but I think it can't expand margins that much, so most of it will have to come from rising sales. Investors like Stephen Mandel and Joel Greenblatt still hold the stock. However, I am selling it today because KORS has broken several technical levels on the way down, and I never hold declining momentum stocks. If it resumes it's uptrend, I might be a buyer again, but right now I'm out.
Picture
KORS chart
0 Comments



Leave a Reply.

    To make money in stocks you must have the "the vision to see them, the courage to buy them and the patience to hold them". And patience is the rarest of the three.  Thomas Phelps

    Follow @BestStocksNow

    Categories

    All
    Best Stocks Of 2013
    Best Stocks Of 2014
    HK Stocks
    Indian Stocks
    Long
    Uk Stocks
    US Stocks

    Archives

    April 2021
    January 2021
    September 2020
    August 2020
    May 2020
    August 2019
    July 2019
    June 2019
    February 2019
    May 2018
    August 2017
    July 2016
    February 2016
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    September 2014
    August 2014
    July 2014
    June 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013

    RSS Feed

Powered by Create your own unique website with customizable templates.