Movado Group appeals to shoppers' taste for high-end watches -- and the luxury lifestyle those timepieces represent. The company is expected to generate double-digit percentage sales growth this year, benefiting from the willingness of consumers to pay up for luxury goods -- such as watches priced in the thousands of dollars. But investors don't have to pay through the nose to invest in Movado. In fact, Standard Poor's analyst Jason Asaeda says the stock looks like a bargain.
The Paramus, N.J., company is well positioned in the global luxury goods market. Its brands cover a wide price range, from the ultra-expensive Ebel and Concord names to its entry-level Swiss brand, ESQ. Movado plans to spend heavily on new products and marketing this year. And it aims to build on the reputation of the Movado brand through its namesake boutiques, which sell jewelry as well as watches.
In addition to the brands the company owns outright, Movado has licensing partnerships to sell watches under various premium, high-growth fashion brands, including Coach, Tommy Hilfiger and Hugo Boss. It's planning to launch a new collection of Hugo Boss watches in March, and it's developing a high-end Juicy Couture collection.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company is also expanding in foreign markets, such as China, Japan and Europe. SP says that continued expansion in selected markets should offer some protection should spending weaken among U.S. consumers.
Only a handful of brokerage analysts cover the stock (symbol MOV). SP gives Movado its highest, five-star ranking and added the stock to its "top ten" portfolio on Wednesday. The share price, which has more than doubled since January 2003, jumped 5% on Wednesday, to $21. At that price, the stock sells for 15 times SP's earnings estimate of $1.43 per share for the fiscal year that ends January 2007. SP's 12-month price target is $24.
--Lisa Dixon
-
Disney’s Risky Acceptance of AI VideosThe Kiplinger Letter Disney will let fans run wild with AI-generated videos of its top characters. The move highlights the uneasy partnership between AI companies and Hollywood.
-
Ask the Editor: Itemized DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on itemized deductions claimed on Schedule A of Form 1040
-
9 Types of Insurance You Don't NeedFinancial Planning If you're paying for these types of insurance, you may be wasting your money. Here's what you need to know.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
