Last up is luxury handbag maker Coach (COH). Not long ago, Coach was a bloated name that was still sitting high on the last vestiges of its huge success in 2008. While other higher-end accessory brands were reeling from the spending cuts of the Great Recession, Coach took the calculated risk of offering lower-priced luxury goods to "mass affluent" consumers. That strategy paid off in spades as COH managed to attract more customers without diluting its storied brand.
Coach makes and retails handbags and other accessories (such as wallets and umbrellas) through a network of around 543 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.
But that premium is all but evaporated now. COH currently trades for just 12.9 times trailing earnings, a price tag that puts a fat 3.2% dividend yield on shares at current levels. That's a big income check for a stock that's already delivering hefty internal growth rates.While funds sold 3.22 million shares of the handbag maker, it looks buyable here now that a big correction has taken hold. To see these stocks in action, check out the Institutional Sells portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV