Tapestry, Inc. (TPR) Hits Fresh High: Is There Still Room to Run?

Shares of Tapestry (TPR) have been strong performers lately, with the stock up 22.9% over the past month. The stock hit a new 52-week high of $88.07 in the previous session. Tapestry has gained 34.2% since the start of the year compared to the 9.2% move for the Zacks Retail-Wholesale sector and the -5.7% return for the Zacks Retail - Apparel and Shoes industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 6, 2025, Tapestry reported EPS of $2 versus consensus estimate of $1.74.For the current fiscal year, Tapestry is expected to post earnings of $4.91 per share on $6.87 billion in revenues. This represents a 14.45% change in EPS on a 3% change in revenues. For the next fiscal year, the company is expected to earn $5.30 per share on $7.11 billion in revenues. This represents a year-over-year change of 7.95% and 3.42%, respectively.Valuation MetricsTapestry may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Tapestry has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 17.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 16.4X versus its peer group's average of 8.2X. Additionally, the stock has a PEG ratio of 2.03. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Tapestry currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Tapestry fits the bill. Thus, it seems as though Tapestry shares could have a bit more room to run in the near term.How Does TPR Stack Up to the Competition?Shares of TPR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Nordstrom, Inc. (JWN). JWN has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.Earnings were strong last quarter. Nordstrom, Inc. beat our consensus estimate by 43.48%, and for the current fiscal year, JWN is expected to post earnings of $2.01 per share on revenue of $14.99 billion.Shares of Nordstrom, Inc. have gained 1% over the past month, and currently trade at a forward P/E of 12.13X and a P/CF of 3.45X.The Retail - Apparel and Shoes industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TPR and JWN, even beyond their own solid fundamental situation.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tapestry, Inc. (TPR): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks