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!

Cash In On These Apparel Industry Winners

Stocks in this article: BKE JWN ROST

As the Holidays come to an end it is time for consumers to take their gift cards and size XS small clothes back to apparel retailers. The apparel stores industry has experienced YTD returns of 29.53% and could inch even higher with strong holiday season numbers.

We screened for stocks that are outperforming the apparel industry averages on metrics that don’t just show good short term earnings management, but represent signs of sustainable value creation for shareholders. The metrics we looked at are listed below with the industry average in parenthesis:

ROE: Measures firm’s performance in using equity to generate earnings for shareholders (19.4%).

Net Profit Margin: It measures how much out of every dollar of sales a company actually keeps in earnings (5.60%).

Sales Growth over past 5 Years: We want to make sure our returns are being supported by top line growth, not just cost cutting.

P/E: Looking for stocks under industry average in order to assess if they are “cheaper” than their peers (16.2)

Business Section: Investing Ideas

Screening using the above metrics produced a list of apparel store industry companies that not only have strong fundamentals, but are also on the cheap relative to the industry average:

1. Buckle Inc ( BKE): Operates as a retailer of casual apparel, footwear, and accessories for young men and women in the continental United States. Market cap at $2.11B. ROE: 41.75% NPM: 14.45% Sales Growth 5 yrs: 14.94% P/E: 13.18

 

2. Nordstrom Inc ( JWN): A fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. Market cap at $10.43B. ROE: 36.35% NPM: 5.87% Sales Growth 5 yrs: 4.65% P/E: 15.98

 

3. Ross Stores Inc ( ROST): Operates off-price retail apparel and home accessories stores under the Ross Dress for Less and dd’s DISCOUNTS brand names in the United States. Market cap at $11.84B. ROE: 47.19% NPM: 7.93% Sales Growth 5 yrs: 9.10% P/E: 16.94

 

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!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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