Trade-Ideas LLC identified

Coach

(

COH

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Coach as such a stock due to the following factors:

  • COH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $125.6 million.
  • COH is up 2.2% today from today's close.

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More details on COH:

Coach, Inc. provides luxury accessories and lifestyle collections in the United States. The stock currently has a dividend yield of 4.5%. COH has a PE ratio of 21. Currently there are 9 analysts that rate Coach a buy, 2 analysts rate it a sell, and 11 rate it a hold.

The average volume for Coach has been 4.2 million shares per day over the past 30 days. Coach has a market cap of $8.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.60 and a short float of 8% with 5.51 days to cover. Shares are down 19.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Coach as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:

  • The gross profit margin for COACH INC is currently very high, coming in at 74.39%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, COH's net profit margin of 1.16% significantly trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that COH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.09 is high and demonstrates strong liquidity.
  • Net operating cash flow has decreased to $186.60 million or 40.96% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 84.5% when compared to the same quarter one year ago, falling from $75.28 million to $11.70 million.

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