Coach (COH) Stock Falling as Retail Sector Takes Hit
NEW YORK (TheStreet) --Shares of Coach (COH) are down by 5.02% to $38.57 in early afternoon trading on Wednesday, as some retail sector stocks trade in the red following disappointing earnings and the cancelation of the Staples (SPLS) Office Depot (ODP) merger.
Coach is a New York City-based luxury accessories retailer that offers in handbags, footwear, apparel and jewelry.
Staples announced last night that it is calling off its almost $6 billion merger with Office Depot after the FTC got the U.S. district court for the District of Columbia to issue an injunction stopping the deal on antitrust concerns.
Additionally, retail giant Macy's, who sells Coach bags in its stores, slashed its guidance due to weakness in consumer spending for apparel and related categories, MarketWatch reports. Watch retailer Fossil (FOSL)is also seeing share pressured today as 2016 first quarter results missed expectations.
Separately, TheStreet Ratings has set a "buy" rating and a score of B- on Coach stock. This is driven by a few notable strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers.
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: COH
