Seven Apparel Retail Stocks Worth a Look Now

The holiday shopping season seems to be going better than early forecasts suggested. So here are seven retail stocks that might be worth a look. All have double-digit returns on equity and double-digit long-range EPS growth forecasts. Each is up more than 10% over the past year as well. DSW DSW: This Columbus, Ohio-based footwear purveyor has seen net income rise in three straight quarters and revenue has risen for the past four quarters. The company has a market cap of $1.9 billion and a dividend yield of 0.6%. Its return on equity is 24.9%. The P/E ratio is less than the industry average while the operating margin is higher than the industry average. The share price pulled back about 7% last week but is still about 20% higher than a year ago. Over that time, the stock has outperformed competitor Collective Brands PSS and the broader markets. Express EXPR: The stock has fallen recently after the Columbus, Ohio-based company announced an offering of 16 million shares. This $1.8 billion market cap company has a long-term EPS growth forecast of 15.6% and a return on equity of 73.9%. Its operating margin is higher than the industry average. The P/E ratio is less than the industry average. The share price is up more than 24% from a 52-week low back in August. The stock has outperformed peers such as Abercrombie & Fitch ANF and Aeropostale ARO over the past six months. Foot Locker FL: News that the NBA lockout will end and strong Black Friday sales gave the stock a boost recently, and the share price is now in the neighborhood of its multiyear high. This New York-based athletic footwear retailer has a dividend yield of 2.7%. Its market cap is $3.6 billion, the P/E ratio is less than the industry average and the operating margin is higher than the industry average. The share price is up about 26% year to date despite pulling back more than 4% last week. Over the past six months, the stock has outperformed competitor Finish Line FINL. Genesco GCO: This Nashville-based teen fashion retailer posted a better-than-expected third-quarter profit due in part to its acquisition of British footwear company Schuh Group. Genesco has a $1.4 billion market cap and its long-term EPS growth forecast is 16.8%. Eight of nine analysts following the stock recommend buying it. Shares have traded mostly between $55 and $60 since early October but the price is more than 54% higher than a year ago. The stock has outperformed competitors such as Finish Line and Pacific Sunwear PSUN over the past six months. Jos. A. Bank Clothiers JOSB: Black Friday mobile sales soared 3,000% for this leading designer and retailer of menswear. Headquartered in Hampstead, Md., the company has a $1.2 billion market cap, a long-term EPS growth forecast of 15.0% and a return on equity of 17.4%. The P/E and PEG ratios are less than the industry average. Its shares also pulled back in the past week, but the share price is more than 20% higher year to date. The stock has outperformed peer Men's Wearhouse MW and the broader markets over the past six months. Limited Brands LTD: Its Victoria's Secret and Bath & Body Works businesses drove strong same-store sales results for November. But the stock has dropped below the 200-day moving average for the first time since August. The company has an $11.4 billion market cap, a dividend yield of 2.1% and a long-term EPS growth forecast of 16.7%. The return on equity is 73.6%. The share price pulled back more than 10% in the past month but is still up almost 28% year to date. The stock has outperformed competitors such as Ann ANN and Gap GPS over the past six months. Nordstrom JWN: November sales were better than expected, perhaps due to in part to the personal shopper iPhone app released by this Seattle-based upscale retailer. This S&P 500 component has a market cap of $9.8 billion. Its return on equity is 36.1% and the dividend yield is 0.9%. The operating margin is higher than the industry average, and the P/E ratio is 15.2. The share price is more than 27% higher than the 52-week low back in August. The stock has outperformed competitor Saks SKS over the past six months but underperformed Macy's M. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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Posted In: Long IdeasShort IdeasTrading Ideasabercrombie & fitchAeropostaleannApparel Retailapparel stocksBath & Body WorksCollective BrandsConsumer DiscretionaryDepartment StoresDSWExpressfinish linefoot lockerGAPGenescoJos. A. BankLIMITED BRANDSMacy’small stocksMen’s WearhouseNordstromPACIFIC SUNWEARRetail StocksSaksSchuhVictoria’s Secret
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