Its just great to see how discount / variety stores such as Wal-Mart Stores Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT) react in comparison to US Oil (AMEX:USO), a fund that invests in futures of crude oil, heating oil, gasoline, natural gas, etc. Shows how big of an impact energy prices has investors in terms of how they think energy prices will affect consumer spending.
For those of you that still can’t figure it out, ignore the time frame, prices, and the gains and losses, and just focus on the correlation between the entities being graphed.
Back in April I blogged about Coach Inc. (NYSE:COH) being undervalued (Time to Invest in Coach Inc.?), that is when COH was at $35.07. After it had dropped to $30.65 in May, I blogged about how Coach was still undervalued (Reiteration to Invest in Coach). Since the $30.65 COH has been up about 36.4%, not to mention the rough 60% increase in price since its dip into the $25 range this past July.
COH now resides at $41.80 with quite a few analysts still having COH labeled as a buy, outperform, or as an overweight. Everything points to COH still climbing up to being properly priced somewhere in the $48-$52 range. Is COH really that undervalued? Is there enough evidence to support those claims?
Over the course of the next few days, I will be re-evaluating COH to see where I believe it should be priced. For the time being, I would like to know what everyone thinks about COH sitting at the $41-$42 range and where they believe COH should be priced. All comments are welcome.
The content in this blog post reflects the views and opinions of the author. The author will not be held liable for any investment decisions or activities that anyone takes based off of this information. This information should not be used to make investment decisions; rather it should be used for one to expand upon his/her own research. The author does not currently own any shares in Coach Inc.
