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TheStreet Open House

5 Rocket Stocks Ready to Rally This Week

Coach

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Luxury handbag maker Coach (COH) has found its ticker symbol on our Rocket Stocks list more than a few times over the last few years -- and for good reason. Shares of the company have rallied close to 300% since 2009. Now investors are wondering whether that breakneck trajectory can continue. My vote is going in the "yes" column.

Coach makes and retails handbags and other accessories (such as wallets and umbrellas) through a network of around 465 North American stores and a large presence online and in third party channels like department stores. In the last few years, overseas has been the big story -- and newer stores in markets such as China and Japan have warranted a hefty growth premium in the stock's price. The firm thrived through the recession by lowering prices and focusing on "mass affluent" customers, a bet that ultimately paid off in spades.

Growth in markets such as China should ultimately continue to keep Coach's top-line numbers swelling. In spite of that, though, the super-high premium of yesteryear is gone. Now the firm sells for a paltry earnings multiple of 16 and a dividend yield of more than 2.1%.

This stock looks like a (relative) bargain right now, so we're betting on shares this week.

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