Coach, Inc. (COH), Ralph Lauren Corp (RL): Luxury at the Right Price

Bottom line

The luxury sector is growing fast, above all in emerging markets, but some companies (like Kors) are just selling for a price that entirely discounts such expected growth. Other companies, like Ralph Lauren Corp (NYSE:RL), are over-pricing their current growth and earnings power. Meanwhile, Coach, Inc. (NYSE:COH), at its current valuation level, seems to be the perfect combination of correct strategy, growth and profitability.

As I always say, price is what you give, and value is what you get. Paying too much (even for a good thing) can generate years of portfolio under-performance. Avoiding such thing is the job of every stock picker. In a few words, if you like luxury, go long Coach, Inc. (NYSE:COH).

The article Luxury at the Right Price originally appeared on Fool.com and is written by Federico Zaldua.

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