Coach, Inc. (COH) continues to see bullish earnings forecasts on strong fundamentals and solid momentum. The full-year Zacks Consensus Estimate of $2.07 per share is up 6% over the last 60 days. During the past year, shares more than doubled the market’s return, currently trading near a 52-week high.

Company Description

Coach sells fine accessories and gifts for women and men, including handbags, women’s and men’s small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, fragrance, jewelry and related accessories.

Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalog in the U.S. and through Coach’s website.

Higher Estimates and Strong Momentum

The company continues to see bullish earnings forecasts on strong fundamentals and solid momentum. The current fiscal full-year Zacks Consensus Estimate of $2.07 per share is up 6% over the last 60 days.

For the following fiscal year, ending June 2011,. analysts polled by Zacks are calling for earnings of $2.27 per share, an increase of 2 cents over the past 60 days.

During the past year, shares more than doubled the market’s return, currently trading near a 52-week high.

Solid Income

Coach recently declared a quarterly dividend of $0.075 per share, which translates into an industry-leading yield of 1%. The dividend is payable on December 28 to shareholders of record as of the close of business on December 7.

Favorable Benchmark Comparisons

The company offers solid fundamentals, trading with a forward P/E of 17.5. Coach’s return on equity (ROE) of 38% soars past the industry average of 9%. The company’s net profit margin of 19% compares to an industry average of 2%.

A Solid Quarter

Coach reported fiscal first-quarter results on October 20. Earnings per share of 44 cents surpassed the Zacks Consensus Estimate of 39 cents by 13%. The company has delivered an average upside earnings surprise of 5% over the past 4 consecutive quarters.

Sales rose 1% to $761 million from $753 million in the year ago period. Same store North American sales declined 1%, but direct-to-consumer sales, which included China, rose 10%. Zacks Investment Research