Armchair Trader pick: Buy & Hold portfolio
- Genesco Inc (NYSE:GCO)
- Sector: Clothing (Footwear)
- Market cap: GBP 648m
- Entry price: $62
- 3 year high: $73.49
- Target price: $75
- Stop loss: 20% (trailing)
This week's pick is strongly positioned in the retail footwear segment, but with a good distribution network that stretches well outside its core US market, including stores and brands in the UK. Genesco Inc (NYSE:GCO) has done very well for investors since it rallied from pandemic lows in Q2 2020, but is still trading at around 8.2x PE (12m forecast rolling).
That's pretty good value for a stock that was trading at less than $20 in December 2020. There has been a real reversal of fortunes at Genesco since Q1 in 2021, and it has had a fantastic 12 months. The company has a market cap of £648m at time of writing against £1.85bn in revenues. The question is whether it can continue to perform at a time when inflation is off to the races? We think shoes are still going to be important to consumers.
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