Why Capri Stock Skyrocketed by 55%, and What to Pay Attention to

<p>Every
single time you witness a random asset gaining dozens of percent, you might
experience a touch of FOMO. And the next thought that might cross your mind is,
maybe it’s not the end yet? Maybe another powerful and profitable hike is near?
Or, at the least, a period of gradual, steady growth? Let’s investigate why
Capri stock skyrocketed by 55% and what opportunities it may present.</p><p>Capri is
a global fashion luxury group operating such brands as Versace, Jimmy Choo, and
Michael Kors. And this company has agreed to merge with Tapestry, another
fashion giant and a parent company of Coach and Kate Spade. The deal has been
valued at $8.5 billion, or $57 a share in cash. Following this news, Capri
stock immediately surged by more than 50%, approaching its buyout level.</p><p>If you
want to find more shares that have recently risen in value, you can use <a href="https://www.tradingview.com/screener/" target="_blank" rel="follow">stock
screener</a>. This tool will come in handy when generating a list of
assets based on your specified criteria. </p><p>Capri
stock chart demonstrates what means 55% (the answer is obvious, it’s huge).</p><p>Despite the fact that Tapestry is also a public company, its shareholders
turned out to be less fortunate – a considerable number of investors decided
that what they saw was not the best deal. This sentiment resulted in a more
than 15% drop.</p><p>Some
market participants view this new partnership as an attempt to create an
American equivalent of LVMH Moët Hennessy Louis Vuitton, a luxury goods
conglomerate and one of the most influential companies around the globe. Yet,
it appears that such a comparison might be premature. The following chart
clarifies why LVMH and Capri-Tapestry alliance are different weight classes so
far.</p><p>However,
Tapestry officials discourage drawing parallels with European brands and
emphasize the potential for mutual development through the deal. Capri stock
may lose its relevance after the deal's closure (the X-hour is August 10,
2024), so it seems that paying attention to Tapestry shares is rather a good
idea. Of course, if you believe it's a match made in heaven.</p><p>After a
16% drop, Tapestry stock seems undervalued. The consensus forecast suggests a
44% growth in the next 12 months. While adjustments are likely (indeed, some
analysts have already made revisions), the fair price of these papers might be
much higher.</p><p>To reach
a verdict, do your own research. Maybe, it will tell you that the best choice
is to forget about Tapestry, and focus on <a href="https://ceo.ca/@TradingView/the-devil-wears-louis-vuitton-lvmh-stock" target="_blank" rel="follow">LVMH stock</a>. But remember, just because you can
buy any of these equities, doesn't mean it'll be a good look for your specific
portfolio.</p>

This article was written by FL Contributors at www.forexlive.com.