Is Coach, Inc. (COH)’s Stock Destined for Greatness?

The strange thing is that an ostensibly luxury brand has become a solid value stock, with low valuations and a solid but sustainable dividend that has grown rapidly in recent years. That’s one advantage Kors can’t match, but it’s only one part of the puzzle necessary for long-term gains. The market’s perception at the moment is that Coach is falling behind in fashion, which could be rewarding to long-term shareholders if consumer perceptions wind up being different. However, it’s also worth noting that fashions don’t become fashionable again immediately — real changes need to be made to Coach’s style to keep it at the forefront of public interest. That might happen sooner rather than later, as the company recently decided to let one of its top designers walk when his contract expires next year.

Putting the pieces together

Today, Coach has many of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Coach’s Stock Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter, @TMFBiggles, for more insight into markets, history, and technology.The Motley Fool recommends and owns shares of Coach.

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