Coach, Inc. (COH), Fossil Inc (FOSL) & An Uncommonly Undervalued Large Cap

Tiffany & Co. (NYSE:TIF) is up over 12% the past month, on the back of a string of upgrades…

Topeka Capital Markets reiterates buy on July 8, with a $86 price target.

Stifel Nicolaus upgrades Tiffany & Co. (NYSE:TIF) from a hold to a buy, slapping a $92 price target on the stock as of July 15.

TheStreet reiterates a buy rating on July 18, noting Tiffany & Co. (NYSE:TIF)’s strengths as “…revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins.”

Bottom line

From 2008 up to mid-2012, Coach, Inc. (NYSE:COH) traded relatively inline with major peers…

However, now Coach is trading on the low end. I don’t think this is justified. The purse maker is trading at a 12.4 times forward P/E, and analysts expect five-year EPS to grow at an annualized 11.2%. I think now would be a great buying opportunity for Coach, while both Fossil Inc (NASDAQ:FOSL) and Tiffany & Co. (NYSE:TIF) should both be big benefactors on a return in consumer discretionary spending; but I’d hold off on Fossil given the recent run up.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Coach and Fossil. The Motley Fool owns shares of Coach and Fossil.

The article An Uncommonly Undervalued Large Cap originally appeared on Fool.com.

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