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 $147.0 million.
  • KORS is up 2.3% 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 1. Currently there are 5 analysts that rate Michael Kors Holdings a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Michael Kors Holdings has been 3.1 million shares per day over the past 30 days. Michael Kors has a market cap of $7.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.25 and a short float of 8.6% with 5.53 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Friday.

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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 growth in earnings per share, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and deteriorating net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.3%. Since the same quarter one year prior, revenues slightly increased by 6.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KORS's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, KORS has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for MICHAEL KORS HOLDINGS LTD is rather high; currently it is at 59.53%. 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 21.07% significantly outperformed against the industry.
  • KORS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.98%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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 change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Textiles, Apparel & Luxury Goods industry average. The net income has decreased by 3.0% when compared to the same quarter one year ago, dropping from $303.68 million to $294.59 million.

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