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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Retail Sector Bargains to Buy Before 2013

Stocks in this article: COST BBBY LOW RL LTD

BALTIMORE ( Stockpickr) -- Buyers are coming out in droves right now. No, I'm not talking about stock buyers for a change; I'm talking about retail.

>>5 "Magic Formula" Stocks for 2013

As consumers check boxes off of their Christmas lists, retail stocks are getting buoyed by materially higher sales. Even though economic black clouds are getting most of the attention in December, retail sales are growing fast this holiday season. The National Retail Federation is expecting holiday sales to increase by 4.1% when all of the receipts are tallied up at the end of the year -- and that's on top of actual growth of 5.6% in 2011.

That's not to say that investors have ignored retail stocks in 2012. In fact, the sector has shown serious relative strength versus the S&P 500, outperforming the broad market as household name stocks post bigger profits.

But some retailers have benefitted more than others.

And some surprising names are looking like bargains compared to the rest of the retail herd right now. That's why we're taking a look at the bargain names today.

With technicals for the retail sector in whole looking strong, this bargain bin is comprised of the other half of the coin -- fundamental valuation metrics that come in cheaper than their sector averages. In particular, we're focusing on firms who are earning more profits, bigger cash flows, and sport better book values for each dollar of share price they're trading for right now.

>>Outwit the S&P in 2013 With 5 Hated Stocks

Here's everything you need to know about five retail sector bargains worth buying before 2013.

Costco

At first glance, Costco (COST) doesn't look like much of a bargain: the firm trades for around 24 times earnings, and shares are around 20% more expensive today than they were on January 1. But you can't look at stocks like Costco in a vacuum -- relative to the numbers in the rest of the sector, COST is currently trading for a bargain. And given the strong trajectory of this stock right now, that's a big deal for investors who've been thinking about picking up a position in this stock.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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