We’ve been a fan of Michael Kors (KORS) for some time; the company has been able to consistently grow comps and retail/wholesale distribution. With yesterday’s pullback in the stock, we no longer consider KORS to be expensive. Our quantitative setup is in line with our fundamental view; thus we’ve added it to our Real-Time Positions.
Our nine-factor fundamental model, outlined below, makes the case for KORS. With only two unfavorable setups on the cash flow side of the business, we believe KORS is a winner.