Burberry’s stock rebounds with a nearly 20% climb year to date, on track for its best gain since 2019. The return to the FTSE 100 in September has investors optimistic after a challenging 2024.

Struggles in 2024 included failed growth plans, leadership turnover, and a global luxury slowdown hitting Burberry harder than competitors.

Morningstar analyst sees potential in Burberry’s reinvention with outerwear collections and more affordable clothing, leading to surpassing analyst expectations and signs of long-term profitability.

Burberry stock currently undervalued at £11.51, with a fair value estimate of £13.70. The brand shows improvement, making it a buy opportunity for patient investors in the fashion industry.

Read more at Morningstar: Stock Of The Week: Can Investors Back the Burberry Turnaround?