NEW YORK ( TheStreet) -- Shares of retailers Coach ( COH), Macy's ( M), Men's Wearhouse ( MW) and Carter's ( CRI) reached 52-week highs Friday.
Each of these stocks got a buy rating from TheStreet Ratings. Coach The accessories retailer reported fiscal second-quarter earnings of $347 million, or $1.18 a share, on Jan. 24. That performance was up from earnings of $303 million, or $1 a share, in the same period a year earlier. "We continue to believe that growth in the men's business is the underappreciated element of the COH story," KeyBanc Capital Markets analysts wrote in a Jan. 25 report. "The men's business is expected to more than double to $400 million this fiscal year. There are a number of reasons why we find the men's growth story compelling; with particular focus on its ability to both grow the existing U.S. retail business as well as strengthen COH's expansion opportunity abroad. Management noted that it hopes to achieve $1 billion in sales; we think this is achievable over the next two or three years." Shares of Coach hit a 52-week high of $72.39 on Friday. The stock's 52-week low of $45.70 was set on Aug. 19. Coach shares trade at a forward price-to-earnings multiple of 17.84. The average forward P/E among the clothing and accessories companies is 16.88. Hanesbrands ( HBI) has a forward P/E of 8.22; Jones Group ( JNI) has a forward P/E of 8.17. Nineteen of the 29 analysts who cover Coach rated it a buy; 10 consider it a hold. TheStreet Ratings gives Coach an A+ grade and has a $90.42 price target on the shares. The stock has risen 18.59% year to date.
Men's Wearhouse The men's formal apparel retailer announced the approval of a 50% increase in its quarterly dividend on Jan. 19 to 18 cents a share. The higher dividend will be paid on March 23 to shareholders of record on March 23. The company is scheduled to report its fourth-quarter results on March 7. Analysts, on average, anticipate a loss of 13 cents a share on $561.8 million. Sterne Agee initiated coverage of Men's Wearhouse on Wednesday with a buy rating and $42 price target. "We believe sales in the core business will benefit from new slimmerfit fashion trends favored by Millennials, which account for 25% of its sales, along with middle-aged consumers," the firm said. "We believe sales have also been aided by a replenishment cycle now under way in tailored goods." Shares of Men's Wearhouse hit a 52-week high of $37.48 on Friday. The stock's 52-week low of $24.50 was set on Oct. 4. Eight of the nine analysts who cover the company rated it a buy. One considered it a hold. Men's Wearhouse's forward P/E is 14.28, which is slightly lower than the 15.14 average among the apparel retailers. TheStreet Ratings gives Men's Wearhouse a B+ grade and has a $43.30 price target on the shares. The stock has risen 15% year to date.