Tapestry stock surged 27% year-to-date, but may be overvalued and lacks strong fundamentals.

From Nasdaq: 2025-06-23 00:05:00

Luxury fashion house Tapestry (NYSE: TPR) has surged 27% year-to-date, outperforming the S&P 500 and peer Ralph Lauren. Strong Q3 earnings and a revised FY2025 guidance have fueled its momentum, but TPR stock appears fully priced and possibly overvalued. While financial stability is solid, downturn resilience remains a red flag.

Tapestry’s revenue growth has been sluggish, with a 1.0% compound annual growth rate over three years. Profitability metrics are average, with operating and net income margins in line with the S&P 500. The stock has historically underperformed during major downturns, indicating a concerning level of volatility.

Despite a seemingly fair valuation, Tapestry’s lackluster fundamentals and poor performance in past market shocks make it a risky bet. Consider exploring the Trefis Reinforced Value (RV) Portfolio for stronger returns and better risk management. Tapestry’s neutral growth and profitability, combined with weak downturn resilience, leave its overall profile uninspiring.



Read more at Nasdaq: After a 27% Surge, Is Tapestry Stock Still Worth Buying?