Capri Holdings (CPRI) Gains But Lags Market: What You Should Know

In the latest trading session, Capri Holdings (CPRI) closed at $61.42, marking a +0.69% move from the previous day. This change lagged the S&P 500's 1.02% gain on the day. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.38%.

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Heading into today, shares of the luxury retailer had lost 4.78% over the past month, outpacing the Retail-Wholesale sector's loss of 6.04% and lagging the S&P 500's loss of 0.91% in that time.

Capri Holdings will be looking to display strength as it nears its next earnings release. On that day, Capri Holdings is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 1.21%. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, up 12.57% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $5.41 billion. These totals would mark changes of +181.05% and +33.23%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Capri Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Capri Holdings is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Capri Holdings's current valuation metrics, including its Forward P/E ratio of 11.43. For comparison, its industry has an average Forward P/E of 12.13, which means Capri Holdings is trading at a discount to the group.

Investors should also note that CPRI has a PEG ratio of 0.36 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.95 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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