Trade-Ideas LLC identified

Michael Kors Holdings

(

KORS

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

  • KORS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.9 million.
  • KORS is up 3.8% today from today's close.

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More details on KORS:

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. KORS has a PE ratio of 9. Currently there are 5 analysts that rate Michael Kors Holdings a buy, 1 analyst rates it a sell, and 13 rate it a hold.

The average volume for Michael Kors Holdings has been 3.5 million shares per day over the past 30 days. Michael Kors has a market cap of $7.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.78 and a short float of 4.9% with 3.48 days to cover. Shares are down 46.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Michael Kors Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 7.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • KORS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.16, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MICHAEL KORS HOLDINGS LTD is rather high; currently it is at 61.22%. Regardless of KORS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, KORS's net profit margin of 17.68% compares favorably to the industry average.
  • Looking at the price performance of KORS's shares over the past 12 months, there is not much good news to report: the stock is down 41.55%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income has decreased by 7.1% when compared to the same quarter one year ago, dropping from $187.72 million to $174.36 million.

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