This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Top 10 Retail Rocket Stocks

With the holiday season fast approaching, I thought it would be worthwhile to look at some of the retailers that have been severely beaten up these past six months.

Regardless of the economy, a lot of these stocks are trading at 8, 9 and 10 times cash flows, have recently launched stock-buyback programs or have experienced large insider buying. While no one can call a bottom, we can certainly sleep better at night knowing the CEO is confident enough to buy the stock of his own company.

Two weeks ago, Jim Cramer dedicated the opening segment of his "Mad Money" TV show to these lagging retailers. Cramer's logic was very simple: "A Fed rate cut and cold weather could rejuvenate some languishing retail stocks." He also made a strong case that "lower interest rates mean there will be more cash flowing around, making consumers feel richer." And just yesterday, Cramer laid out the case for the sector in a video he recorded for TheStreet.com TV: Cramer: Retail Rocks When Times are Tough.

With all of this in mind, let's take a look at a few of these Top 10 Retail Rocket Stocks.

First up is Kohl's (KSS), a favorite of mine. About a month ago, Kohl's board approved a $2 billion stock-buyback plan for the upcoming year. The $2 billion represents about 13% of all outstanding shares. This is a massive amount of stock to repurchase and reveals the company's overall bullish tone regarding its own business.

On top of the buyback, Deutsche Bank reiterated its buy rating with a target price of $75 a share. The bank believes that the repurchase plan will add to full-year 2007 and 2008 earnings-per-share growth.

Kohl's is one of the few stores where both middle-class and upper-middle class women shop. Couple this with a huge buyback, and this stock looks very attractive here.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs