Coach and Kate Spade's parent company sports low volatility expectations
On Friday, shares of luxury fashion retailer Tapestry Inc (NYSE:TPR) hit a nearly three-year high of $48.80. And though TPR was last seen 1.5% lower at $47.81, a historically bullish signal is flashing that's never failed to lift it higher.
Specifically, Tapestry stock just appeared on Schaeffer's Senior Quantitative Analyst Rocky White list of stocks trading near their 52-week high, and sporting unusually low volatility expectations, measured by our Schaeffer's Volatility Index (SVI). Tapestry's current SVI of 27% ranks in the low 9th percentile, suggesting it could be a good time to target near-term options contracts.
This is the third time in the last five years that this signal is flashing for TPR. After all three of those occurrences, shares of Coach and Kate Spade's parent company were higher each time, averaging a one-month gain of 10.4%. A move of similar magnitude would put the stock near $53 for the first time since August 2018.
While most analysts are optimistic towards the security, a round of bull notes certainly couldn't hurt. While 14 rate TPR a "buy" or better, five still recommend a tepid "hold."
Over the last three months, Tapestry stock has rallied more than 54.5%, and is outperforming in 2024 with a nearly 30% year-to-date lead. In recent weeks, its 10-day moving average has helped TPR move higher.
