Why Tapestry Inc. (TPR) Advanced on Thursday

We recently compiled a list of the Impressive Earnings, Fresh Deals Propel Prices of These 10 Firms. In this article, we are going to take a look at where Tapestry Inc. (NYSE:TPR) stands against the other stocks.

Wall Street’s main indices ended mixed on Thursday, with the Dow Jones the sole decliner, losing 0.28 percent.

In contrast, both the S&P 500 and the Nasdaq Composite registered gains, rising by 0.36 percent and 0.51 percent, respectively.

Amid the earnings season, 10 companies saw significant increases in their valuations, thanks to stronger-than-expected earnings reports. Additionally, several firms enjoyed rallies fueled by newly secured deals.

To come up with Thursday’s biggest advancers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of diverse group of people wearing the company’s small leather goods.

Tapestry Inc. (NYSE:TPR)

Tapestry Inc. saw its share prices increase by 12 percent on Thursday to end at $82.2 apiece as investor sentiment was fueled by an optimistic business outlook for 2025.

In a statement, Tapestry said it projects revenues to grow by 3 percent to more than $6.85 billion and earnings per share to jump between 13 to 14 percent to $4.85 to $4.9.

In the fourth quarter of 2024, Tapestry, however, posted a weaker earnings performance, with net income dropping by 3.69 percent to $310.4 million from the $322.3 million reported in the same period last year.

Gross profit increased by 7.38 percent to $1.6 billion from $1.49 billion year-on-year on the back of strong performance from its luxury brand Coach, with a 12.6 percent higher contribution at $697.4 million versus $619.2 million year-on-year.

Overall TPR ranks 4th on our list of Thursday’s biggest advancers. While we acknowledge the potential of TPR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TPR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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