Should you buy Canada Goose Stock this season?

With winter quickly approaching, a flock of Canada Goose jackets can be expected to soon descend upon Colby's campus. This is an annual event, usually occurring in mid-to-late October when the weather starts to get a little bit chilly.

 Colby, though, is certainly not the only school where this migration is bound to occur. Most colleges, especially those with wealthy students, will have massive quantities of these jackets being worn around on a daily basis during the winter months.

 Although these trendy jackets are relatively new on the scene at U.S. colleges and universities, Canada Goose was actually founded quite some time ago, as the company dates back to 1957. Originally, it was called 'Metro Sportswear,' yet the name was changed to Canada Goose in the early 1990s.

 The company enjoyed several decades of decent success, yet globally, the brand took off in the 21st century. In 1991, Canada Goose hauled in $3 million in revenue, yet they reached nearly $20 million in 2006. This was primarily due to expansion into European markets and increased brand recognition throughout much of North America and Europe.

 By 2016, Canada Goose had annual revenue of roughly $300 million, and profits of almost $30 million, marking immense growth for the company in the early 2010s. Due to this, the company's executives announced in 2016 that the company was filing for an initial public offering (IPO) on both the Toronto and New York Stock Exchanges.

 Canada Goose's stock (NYSE: GOOS) hit the public markets trading at roughly $13 per share in March 2017. Since then, though, the stock has had a bit of a shaky performance, reaching a high of $71 in November 2018 but falling to a low of just $15 in March 2020. It currently trades in the mid $30s and has posted positive returns since the March low.

 Although the stock has not performed enormously well over the last few years, several major financial institutions still see it as worth buying or at least considering. According to CNN Business, the high price target for GOOS remains over $40, while the average price target is in the mid-to-low thirties. According to financial estimates and equity valuations, this indicates that there may be more room to grow for the company's stock or that it may just hover around its current level.  

 If you're looking for a new investment, this stock may not be the most financially rewarding. If you're looking for a new parka, though, Canada Goose will certainly not be financially rewarding. Most of their winter jackets cost upwards of $1,000, the equivalent of roughly 28 shares of the company's stock.

 Thus, if you're considering purchasing a coat from Canada Goose, maybe buy its stock instead. You may thank yourself in a few years.

~Sam Leathe `21