- Tapestry (TPR) shows exceptional technical momentum and shares set a new all-time high on July 14.
- TPR has a 100% “Buy” signal via Barchart.
- The stock has gained 127% over the past year and trades above its key moving averages.
- Its fundamentals are solid, but some advisory services warn TPR could be overvalued.
Today’s Featured Stock:
Valued at $20.44 billion, Tapestry (TPR), which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, fragrances, and watches.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TPR checks those boxes. Since the Trend Seeker signaled a buy on May 7, the stock has gained 31.68%.
TPR Price vs. Daily Moving Averages:
Barchart Technical Indicators for Tapestry:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Tapestry shares hit a new all-time high on July 14, touching $100.27 in morning trading.
- TPR has an 100% technical “Buy” signal.
- The stock recently traded at $98.43, above its 50-day moving average of $82.90.
- Tapestry has a Weighted Alpha of +147.23.
- The stock has gained 126.38% over the past year.
- TPR has its Trend Seeker “Buy” signal intact.
- Tapestry is trading above its 20, 50 and 100-day moving averages.
- The stock made 14 new highs and gained 27% in the last month.
- Relative Strength Index is at 79.60%.
- The technical support level is $97.27.
Don’t Forget the Fundamentals:
- $20.44 billion market cap.
- Trailing price-earnings ratio of 19.65x.
- Dividend yield 1.42%.
- Revenue is projected to grow 4.36% this year and another 2.09% next year.
- Earnings are estimated to increase 18.11% this year and increase an additional 6.54% next year.
Analyst and Investor Sentiment on Tapestry:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are bullish, but some major advisory sites aren't.
- The Wall Street analysts tracked by Barchart issued 14 “Strong Buy,” two “Moderate Buy,” and four “Hold” opinions on the stock.
- Value Line gives the stock its highest rating.
- CFRA’s MarketScope rates the stock a “Hold.”
- Morningstar thinks the stock is 53% overvalued.
- 45,660 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line:
Tapestry currently has momentum and is hitting new highs.
I caution that TPR is volatile and speculative — use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
