Michael Kors share is significantly undervalued and should recover soon.

From a fundamental viewpoint, the company has an attractive valuation compared to its sector. It is highly profitable as the net margin of 20.1% for 2015 shows. Analysts who are covering the stock are very optimistic, they keep upgrading their EPS estimates, and target on average USD 86.6, which represents a 33% appreciation potential.

Currently, the stock is oversold and is trading in a bearish trend. In the short term, this trend could be reversed upon contact with the USD 63.8 pivot point in weekly data. The stock should be able to confirm its increase in the next trading sessions, and fill the recent downward gap. Thus, this threshold is a trading opportunity in order to anticipate a technical rebound towards USD 69.8.

Therefore, the timing seems opportune to go long on Michael Kors Holdings. A first goal can be set at USD 69.8, and a stop loss order should be placed under the USD 63.8.


At the publication date, the company Surperformance, 4-traders.com website publisher, held a position of 135 shares, acquired at an average price of USD 69.52.