Barron’s Take On Tiffany (TIF) Stock

Economic crisis brought on by the European debt crisis, rising raw-materials prices and weak consumer spending have pulled down shares of Tiffany & Co.

22% from their 52 week high of $52.19 on April 26. According to Barron’s, Tiffany’s shares, which normally trade at approximately 20 times earnings, are trading at a forward multiple of 15 times. The stock has a dividend yield of 2.5% and the company’s balance sheet supports buybacks down the line. Tax cuts for top earners are expiring in 2011, and some of them fear that European economic turmoil may pose a threat to the jewelry business on that continent.