Tapestry (TPR): Buy the Dip on THIS A Rated Stock

You know Tapestry (TPR) better as the folks behind the Coach and Kate Spade brands. Meaning they are a leader in selling purses and other luxury items.

The upside of this industry is that luxury is generally pretty resilient to economic weakness as those with money are not going to stop spending.

The downside of the group is that most of the goods are made internationally which does increase tariff risks.

However, I read a very interesting analysis of Tapestry’s wide spread manufacturing base across many countries which was done many years ago to provide them more flexibility for cost savings. No time is that more valuable than now with tariff concerns thus lowering the risk in TPR ownership.

The benefit of this model showed up in “spades” in their most recent earnings report that was a well rounded beat and raise. And yet amazingly shares fell more than 10% on the news. 

The only logical explanation is that shares were up nearly 50% since June. That meant that some investors had unrealistic expectations coming into the report which led to a post announcement sell off. 

One man’s trash is another man’s treasure!

Indeed I think this stock is an absolute treasure after 8 straight beat and raise earnings reports which points to tremendous earnings momentum inside the company. 

Indeed, our Zen Ratings quant model focused on 115 different factors of a stocks attractiveness also points to this being an exceptional company. Not just A rated overall, but check out their strength across these other vital measures: 

Top 23% Safety (not focused on the safest stocks…just making sure we don’t take on excess risk to enjoy the excess reward packed into shares). 

Top 11% Growth (not just earnings growth, but revenue, cash flow, EBITDA and profit margins)

Top 10% Sentiment (what the Smart Money thinks of shares)

Top 1% Financials (which is the best part of these results because these measures of Financial strength are the most essential ingredient pointing to future stock price outperformance). 

Top Wall Street analysts are also picking up what Tapestry is putting down. Beyond the increased earnings estimates after this beat and raise report, we also see a slew of Strong Buy ratings with increased target prices. 

This includes Rick Patel from Raymond James who scores in the top 5% of all analysts for stock picking performance. He just raised his price target to $130…nearly 30% above the recent close. 

Even better is the street high $147 target from Mathew Boss at JP Morgan. In fact the research department at JP Morgan loves this stock so much that they just added it to their coveted “Analyst Focus List”. This means it’s one of the firm’s top recommendations. 

Even the best stocks don’t go straight up. They do a dance of 2 steps forward and 1 step back as traders take profits. 

Let’s take advantage of this one step back in Tapestry to enjoy the tremendous upside potential pointed out by the Zen Ratings and some of Wall Street’s top analysts. 

What To Do Next?

Tapestry (TPR) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each of these top 20 stocks was selected based on my stringent process that helps pinpoint those with 100%+ upside potential in the next 12 to 24 months.

To learn more about my unique investment process…and to see my current top 20 stock recommendations…then just click the link below: 

Discover the Zen Investor portfolio & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.