We recently published a list of 10 Stocks That Analysts Think Will Go Up. In this article, we are going to take a look at where Tapestry, Inc. (NYSE:TPR) stands against other stocks that analysts think will go up.
The S&P 500 index touched an all-time high this week as Mark Zuckerberg’s company’s 20-day streak finally came to an end, adding $320 billion to the company’s market cap. The semiconductor stocks once again drove the broader market. However, as the rally cools down, the focus is shifting back to Donald Trump’s tariffs. Automobiles, pharmaceuticals, and semiconductor companies are expected to be hit in the next wave of tariffs which has forced investors to rethink their strategies.
As investors and analysts try to figure out where the market is headed, some companies are more likely to go up in share price than others. We looked through the recent analyst upgrades and shortlisted 10 companies that are likely to go up according to analysts. We also looked at the factors driving this analyst optimism.
To come up with the list of 10 stocks that analysts think will go up, we only considered stocks with a market cap of at least $1 billion that were upgraded this week.
A close-up of diverse group of people wearing the company’s small leather goods.
Tapestry, Inc. (NYSE:TPR)
Tapestry, Inc. (NYSE:TPR) is a branded lifestyle products and luxury accessories provider. It operates through Stuart Weitzman, Coach, and Kate Spade segments. The company provides women’s accessories, women’s handbags, belts, charms, and key rings. It also offers men’s products including bag collections, small leather goods, eyewear and sunglasses, and footwear & fragrances.
The holiday season saw the company’s Coach brand register impressive growth, helping the company improve its standing in the premium accessories business. Analysts at Redburn Atlantic believe the company is going under the radar and has the potential for outperformance:
We believe consensus is underestimating the incremental growth and margin expansion prospects for the core Coach brand, given its already lofty margins (30%+) and seemingly mature position in the key markets of the US and China.
Tapestry, Inc. (NYSE:TPR) spent much of 2024 dealing with regulatory issues related to the merger with Capri (CPRI). The merger plans were abandoned late last year when both parties mutually agreed that the required regulatory approvals would not be received in time. By shifting the focus back to the business for the holiday season, the company has managed to accelerate its growth.
The analysts echoed the same sentiments, expecting the company to grow its earnings at 14.5% CAGR till FY28 as opposed to the 5% growth modeled with the merger.
Overall, TPR ranks 5th on our list of stocks that analysts think will go up. While we acknowledge the potential of TPR as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TPR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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