Why Capri Holdings Ltd. (CPRI) Surged On Thursday?

We recently published a list of These 10 Stocks Defied Thursday’s Slump. In this article, we are going to take a look at where Capri Holdings Ltd. (NYSE:CPRI) stands against other stocks that defied Thursday’s slump.

The stock market ended in the red territory anew on Thursday following a fresh wave of uncertainties and reports of a looming government shutdown that rattled investors.

The Dow Jones dropped by 1.30 percent, while the S&P 500 and Nasdaq declined by 1.39 percent and 1.96 percent, respectively.

Meanwhile, investors took refuge in 10 companies, predominantly mining firms, to mitigate the risks from the macroeconomic threats.

In this article, we have listed the 10 strongest stocks and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A glamorous woman with a leather handbag enjoying a shopping experience in an upscale boutique.

Capri Holdings Ltd. (NYSE:CPRI)

Capri Holdings grew its share prices by 8.42 percent on Thursday to end at $21.12 apiece as investors reacted to a management shakeup in the Versace brand amid reports that the latter is nearing a merger with Prada.

On Thursday, CPRI announced that Donatella Versace is set to step down from her post as the main designer for Versace after almost three decades, as it shook hands with Prada for the sale of the Italian luxury brand for 1.5 billion euros.

According to Bloomberg, the acquisition of the company founded by the late designer Gianni Versace would help Prada better compete with global luxury rivals such as LVMH which owns Louis Vuitton, Christian Dior, and Tiffany & Co., as well as Kering SA which owns Yves Saint Laurent, Gucci, Balenciaga, Creed, and Alexander McQueen, among others.

The reports, citing people privy to the matter, said that the deal could be finalized as early as this month and that the price and timing could still change.

Overall, CPRI ranks 3rd on our list of stocks that defied Thursday’s slump. While we acknowledge the potential of CPRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CPRI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.