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Three Retailers Worth Talking About

The sector is headed for a troubling holiday season. So what's attractive here?

It's common knowledge that America's retailers are headed into a lousy holiday season, as consumers hold on tightly to their wallets after a barrage of negative economic news. But is the bad news already baked in to current stock prices? If so, will sector components act better than expected if cash-register receipts don't point to total catastrophe?

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We do know there's little profit in popular opinion, like the collapse of the retail sector in October. After all, everyone who wanted to sell these stocks during the downturn has already placed their orders. That leaves many issues sitting at depressed levels that may or may not reflect the reality of upcoming sales and consumer activity into 2009.

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At the time of publication, Farley had no positions in the stocks mentioned, although holdings can change at any time.

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