Top 5 Stocks to Invest in For Beginner Investors

4. Capri Holdings Limited (NYSE: CPRI)

Number of Hedge Fund Holders: 42

Capri Holdings is a luxury fashion brands giant which is behind Versace, Jimmy Choo and Michael Kors. The company is set to gain from its timely ecommerce penetration and the upcoming economic recovery in the world as people are desperate to go back to the luxury shopping experience.  In February, the company said its ecommerce sales soared by a whopping 65% sequentially in the fiscal third quarter.  The company said that it expects EPS and revenue to exceed pre-pandemic levels by 2023. Jim Cramer and Bob Lang from Explosive Options said in March that high-end retail stocks have more room to run. The analysts specifically mentioned Capri stock and gave bullish comments based on their technical analysis.

A total of 42 hedge funds tracked by Insider Monkey were bullish CPRI at the end of the fourth quarter, up from 36 funds a quarter earlier.

Avory & Co, in their Q4 2020 investor letter, said that they have a positive outlook on Capri Holdings Limited (NYSE: CPRI) because of the commendable efforts of its management. Here is what Avory & Co has to say about Capri Holdings Limited in their Investor Letter:

“John Idol, was amongst the most nimble and resilient CEOs in 2020. Capri, as most of the retail sector, faced various challenges; 1) Supply disruptions in their leather goods as a result of the large impact covid had on Italy, 2) Dwindling demand as brick and mortar locations were forced to shut down globally and 3) Debt due in December of 2020. John acted quickly and reduced his cost base through global furloughs, delayed reopenings, turned to social selling and clienteling, was able to refinance all the debt in 2020 and pushed it out multiple years, along with getting their three brands, Jimmy Choo, Versace, and Michael Kors to positive or mid negative single-digit comparable sales by August. Coming out of Covid Capri is a leaner business. Versace is realizing positive sales, and they now expect 2020 to be a profitable year. We believe that this type of management execution can and should totally transform the narrative around this company for many years to come.”