This Day On The Street
Continue to site
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

5 Specialty-Retail Stocks That Could Pop

BOSTON ( TheStreet) -- The still-challenged U.S. consumer is showing signs of life. So-called personal-consumer expenditures were a catalyst for fourth-quarter gross domestic product, which grew at a 2.8% pace, improving on the third quarter's 2.6%. Specialty retailers should enjoy 2011 sales growth as more enter the workforce. Here is a look at five top small-cap specialty retail stocks. Below, they are ordered by percentage of "buy" ratings.

5. Destination Maternity (DEST) sells maternity apparel, ranging from casual to career wear.

Destination Maternity's stock has gained 32% a year, on average, since 2008, besting retail peer investments. It has soared 90% in the past 12 months. The company is growing a following on Wall Street. Currently, three researchers rank its stock "buy" and one ranks it "hold." None rate the shares "sell." Small-cap focused Needham & Co. forecasts that Destination's stock will rise another 20% to $54 in the next 12 months. Sterne, Agee & Leach more conservatively predicts a rise of 14% to $51. Despite a recent run, the shares are still cheap.

Destination's stock trades at a trailing earnings multiple of 14, a forward earnings multiple of 10, a sales multiple of 0.5 and a cash flow multiple of 7.6, 25%, 37%, 45% and 38% discounts to specialty retail peer averages. Its PEG ratio, calculated by dividing the trailing P/E by analysts' terminal growth forecast, of 0.3 indicates a 70% discount to estimated fair value. Fiscal first-quarter adjusted earnings increased 24% to 88 cents, beating analysts' consensus estimate by 29%, as the operating margin rose from 5.3% to 6.8%. Sales narrowly missed the consensus forecast.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ASNA $8.81 0.00%
DEST $6.97 0.00%
FINL $19.75 0.00%
SCVL $25.63 0.00%
VSI $27.37 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs