This Day On The Street
Continue to site
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

Apparel Stock Short-Squeeze Opportunities

Vera Bradley

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

A relatively recent IPO, Vera Bradley (VRA - Get Report) has made an impressive run for investors who decided to take on a position right after shares hit the market. The $2 billion apparel and accessory company, one of the 10 best-performing IPOs of 2010, has seen shares rocket 94% since the stock started trading back in late October.

Naturally, that performance has attracted short-sellers to this stock, bringing VRA's short ratio to 7 -- but bets against this stock's performance may be misplaced.

Related: 20 Highest-Yielding Retail Stocks

Vera Bradley has been undergoing some impressive growth in the last several years, building out retail stores and growing the geographic footprint of its affiliate retail base at the same time. VRA has been extremely successful at targeting trendy middle-class women with its line of accessories (much like higher-end Coach (COH) did in the height of the recession) and has used that success to expand its offerings to include a wider array of products.

Ultimately, the key to growth will likely be through its own retail stores -- but the road to a larger VRA won't be easy. As long as management continues to focus on keeping average revenues per square foot higher than peers, instead of simply growing its store count, this stock should continue to enjoy sustainable growth for some time.

4 of 6

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

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TRLG $0.00 0.00%
WMT $75.86 -0.33%
GIL $31.89 0.02%
ICON $26.55 0.15%
UA $78.47 0.35%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs