Below is a brief note from CEO Keith McCullough on why we're adding Tapestry (TPR) to the long side of Investing Ideas today:
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Discretionary US Consumption Growth continues to be one of our Top 3 US Equity (and Credit) exposures on the long side. US Retail Sales in particular grew +4.7% y/y in APR and have easing comparisons through AUG of 2018. That's one of the main reasons why we aren't getting squeezed by the Macy's (M) news today. We aren’t short that sub-sector exposure, despite there being some real bad companies in the sector! One of Brian McGough new Best Ideas on the long side is Tapestry (TPR). It's signaling immediate-term #oversold today. Here's an excerpt of McGough's recent Institutional Research note on the name: "This was a growth stock that just turned into a value stock – that will likely accelerate growth again in 2H. We’re not changing our above consensus estimates. If you’ve missed this long side, this is your shot. The story is playing out, and the market is giving you a gift. I think the sell-side will be upgrading this stock at $80, and have the financial analysis to back it up. I think this is a double over the course of 12-18mos." Buy on red. Sell on green. Rinse & repeat. KM |
