Market Cap: $13 billion
Expected 5-year EPS Growth: 28%
Luxury hot-shot Michael Kors (KORS) burst onto the scene in late 2011 with an IPO pricing of $20. Around a year-and-a-half later, the stock has more than tripled, including a 25% push in the first half of 2013.
And no wonder — Michael Kors is one of the most rapidly growing specialty brands in the retail space, firing on all cylinders. The high-end company has enjoyed improving same-store sales while also dropping new stores across the U.S., looking overseas to new markets and plotting new partnerships.
Of course, because of that, growth has already become synonymous with KORS. The $13 billion brand has enjoyed annualized growth north of 50% during the past four years, making the coming 28% annualized growth — a rate most retailers would kill for — actually a bit disappointing to many investors.
Considering the stock is only trading at 20 times next year’s earnings, though, 28% EPS growth — including an expected 24% improvement next year — still looks pretty good.