Well, the forward P/E of around 15 is apparently better than TPR (formerly known as Coach) has seen in some time now and Bank of America Merrill Lynch for one was touting it as a great buy last week before it dropped again this week. If the bull market in stocks is to resume with the February-April disturbance having been the correction, I’d want to have a diversified portfolio and trade less. That is not yet a given, but the bear case has grown weaker. This is an item of interest in that case.
But NFTRH+ is a chart service that should not care about valuation or the market backdrop, so let’s get to TPR’s charts. TPR has now dropped through the 200 day average and is oversold.
But the weekly chart shows the trend channel we have reviewed occasionally in the NFTRH+ Charts & Notes segment; first to signal its status approaching the channel top as an FYI selling opportunity (for anyone holding from the original highlight), and most recently on its big drop toward the lower channel line. This bigger chart gives a clearer view than the little one in NFTRH. One might want to wait it out for the channel bottom with a possible in-day or in-week stab down to the green shaded lateral support zone around 41.
Let’s get some perspective with the monthly chart, which shows TPR’s entire history as a publicly traded company. It’s a very volatile series of higher highs and higher lows. If this update is on the mark the coming low to buy would not be a major low. That would have already happened in 2015.
Consider this a look-ahead to a buying opportunity, assuming the market is stable and long exposure is desirable at such time. The trend we are working to would be broken with a drop below 38.13, which is the late 2017 low.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason), which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.