Ralph Lauren Corp (RL), Michael Kors Holdings Ltd (KORS), The Jones Group Inc. (JNY): High Growth Projections, But a Bit Unrealistic

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However, analysts are bullish on the stock, with a total of 53% earnings growth over the next three years. Additionally, because of the not-so-great performance of the past few years, the stock trades at a lower valuation than its peers, at just over 17 times forward earnings. Keep in mind though, this is a riskier play than the other two, but could pay off nicely.

Conclusion

With high valuation, unrealistic earnings growth priced in, and rising costs, Ralph Lauren is expensive any way you look at it. The problem is, the other “hot” designers like Michael Kors Holdings Ltd (NYSE:KORS) are just as pricey or more, and are also not very realistic in terms of growth. The only play worth making in this sector right now is for a riskier turnaround candidate like The Jones Group Inc. (NYSE:JNY), but only if you have the stomach for the added volatility that it will undoubtedly bring your portfolio.

The article High Growth Projections, But a Bit Unrealistic originally appeared on Fool.com and is written by Matthew Frankel.

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