Tiffany & Co. (TIF), Guess?, Inc. (GES): Why Coach, Inc. (COH) Shares Are More Attractive Than Its Bags

Guess?, Inc. (NYSE:GES) is also in the business of selling luxury goods and accessories. Although its fundamentals are not improving, its stock price is, suggesting an overvaluation.

Unfortunately, Guess?, Inc. (NYSE:GES) has little exposure in Asian markets. This might be reason enough to be bearish. Even worse, its revenue in America fell more than Tiffany & Co. (NYSE:TIF)’s or Coach’s, despite dealing with the same macroeconomic conditions, Guess?, Inc. (NYSE:GES) may be more vulnerable in the current economy. That’s probably because its revenue, which relies heavily on apparel, is more exposed to business cycles. Apparel is constantly changing, depending on the trend in fashion.

Final foolish thoughts

Coach is a unique company with strong brand awareness. It’s currently undervalued due to its untapped potential in the Asian markets, where there is plenty of room for growth. Strong financial performance since 2008 shows the luxury company has completely recovered from the crisis and managed to remain fashionable. With its emerging foray into the shoe market, it seems perfectly poised for an exciting future. What else would an investor look for? Just like its famous bags, its current share price is just too pretty to ignore.

The article Why Coach Shares Are More Attractive Than Its Bags originally appeared on Fool.com and is written by Adrian Campos.

Adrian Campos has no position in any stocks mentioned. The Motley Fool recommends Coach and Guess?. The Motley Fool owns shares of Coach and Guess?.

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