Vera Bradley, Inc. (VRA): A Buying Opportunity Which You Shouldn’t Miss

Coach, Inc. (NYSE:COH) is a top stock for many investors given the company’s history of growth. Over the past five years, it has grown revenue 57%, net income 36%, and free cash flow 46%. Vera Bradley, Inc. (NASDAQ:VRA), meanwhile, has grown revenue 89% and net income 51%, though free cash flow has plummeted 90%. Given Vera Bradley’s more attractive five-year PEG ratio, investors who love Coach for growth can love Vera Bradley more.

Kors’ earnings are slated to grow the most this year, which is why it sports a higher valuation. In the most recent quarter, revenue was up 57%, and earnings per share more than doubled. Additionally, the company has a huge cash position — $473 million — and no debt. Looking at these numbers, a compelling case could also be made for Kors.

Kors is trading close to its 52-week high. Next quarter is expected to be a little weak. Patient investors might want to wait for a pullback. Likewise, Coach, Inc. (NYSE:COH) is also trading near highs. The stock has been a little volatile over the past year — twice dropping over 20%. Another drop could come soon. In contrast, Vera Bradley, Inc. (NASDAQ:VRA) has already pulled back.

Conclusion

When you read statements like “waiting for an attractive entry point”…this is it. As we’ve seen, Vera Bradley, Inc. (NASDAQ:VRA) is trading off of highs. But everything we’ve looked at points to continued growth. Seems like a good time to initiate a position or add to an existing position in the company.

The article A Buying Opportunity Which You Shouldn’t Miss originally appeared on Fool.com.

Jon 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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