Jonesin' for a Nontech Growth Stock? Check Out Jones Apparel

Looking for a way to diversify out of tech? If you've got an optimistic streak and can stomach some risk, you might want to consider a consumer stock like Jones Apparel Group(JNY Quote), a wholesale clothing company that markets upscale brands like Jones New York, Todd Oldham, and Lauren by Ralph Lauren. It also owns Nine West, a national chain of shoe stores.

Jones' earnings outlook appears relatively upbeat, especially compared with companies in the still-reeling tech industries. "It's likely to grow earnings 18% to 20% this year, and those earnings estimates relative to tech have held up much better. They're more believable, more credible," says David Sowerby, an analyst at Loomis Sayles. And the price-to-earnings ratio is attractive, he adds. "It's trading at a meaningful discount both to the market and the average consumer cyclical stock."

The company's return on equity is 22%, a nice cut above the industry average of 18%, according to Morningstar (return on equity measures how much profit a company earns as a percent of stockholders' investment). ...