Coach, Inc. (COH), Tesla Motors Inc (TSLA), Tiffany & Co. (TIF): Make a Bet on the Wealthy

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It is important to note that company has significant exposure to Japan, as the country contributed $145 million in net sales last quarter. The weakening yen is hurting the company’s Japanese earnings. With Japan holding its interest rates very low, there is a good chance the yen will continue to fall. Even though Tiffany & Co. (NYSE:TIF) will benefit from the growing global luxury market, its profit margin of 10.8%, EBIT margin of 18.3% and P/E ratio around 22 make it less attractive than Coach.

Conclusion

Coach is an attractive investment as it has been growing and its future CEO should help the company deal with North America’s challenges. Tiffany & Co. (NYSE:TIF) has one of the top luxury brands, but falling growth rates, falling free cash flow and a high P/E ratio decrease its attractiveness. It is hard to say where Tesla is headed, but it is a good firm to watch. If it starts to make consistent profits and doesn’t bankrupt itself, it will become an attractive luxury play.

With the European debt crisis and slowing growth in China many investors are worried about heady growth going forward, but fear not, because: The Future is Made in America. Domestic manufacturing is poised to once again become the investment driver of the world, and all because of one disruptive technology. You can uncover the three companies that will become the American Steel of tomorrow in The Motley Fool’s new free report. Just click here to read more.

Joshua Bondy has no position in any stocks mentioned. The Motley Fool recommends Coach and Tesla Motors . The Motley Fool owns shares of Coach and Tesla Motors . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

The article Make a Bet on the Wealthy originally appeared on Fool.com and is written by Joshua Bondy.

Joshua is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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