5 Stocks To Own For The Holidays (AAPL, AMZN, TIF, COH, ANF)

Retail is going to be one of the most talked about sectors from now until New Year's. In fact, it is already one of the hottest, if not hottest, sector in the stock market with numerous names hitting multi-year highs. If a sustainable recovery manifests itself over the coming years, investors who are allocating capital to the retail space now will do quite well for themselves. Here is a look at some of the must own retail stocks as we approach 2011. Apple AAPL - Everyone is familiar with the Apple story. Despite the tremendous performance, however, there are a number of reasons why this stock is still a Buy. Despite the company's giant market cap, it does not have anywhere near a dominant market share position in the smartphone and laptop spaces. This means that AAPL can continue to grow at a rapid pace. The valuation is also very compelling. The stock only trades at 14 times forward earnings estimates and a PEG ratio of 0.83. Amazon AMZN - This name just hit another all-time high and despite its expensive valuation, this stock just continues to go higher. Amazon is a tremendous growth story and if current trends persist, the company's share price could easily double in the next five years. Amazon is absolutely dominating the fast-growing online retail space. Tiffany TIF - Things are still very difficult for millions of Americans. The high end, however, is doing quite well as they have been less effected by unemployment and have benefitted significantly from the rebound in the stock market. Tiffany is highly leveraged to the affluent consumer and will continue to benefit from the increase in luxury spending by the rich. Coach COH - Coach is an interesting story because it is an aspirational brand. Its price points may not be considered ultra-high end, but it is a luxury brand nonetheless. As the economy recovers, Coach should continue to do very well. The stock has gained 55% year-to-date, and is creating a lot of buzz on the Street. Abercrombie & Fitch ANF - Abercrombie & Fitch is leveraged to a rebound in teen spending. This is an entrenched and popular brand with a very loyal consumer base. The other thing that makes Abercrombie interesting is the M&A activity that has been taking place in this space. If you apply the same multiple that was used in the acquisition of J.Crew JCG by TPG Capital, you come up with a $60 stock. ANF shares are currently trading at $49.44.