MINNEAPOLIS ( Stockpickr) -- It is getting more and more difficult to find ideas that work in this market environment. Stocks are moving wildly with no rhyme or reason. Nothing makes sense -- or so it seems.Yes, it's frustrating -- but don't throw in the towel just yet. Today, I'm turning to companies with premium brands that cater to the higher-end consumer. The wealthy are still spending, and that can translate to profit growth for these companies. There's money to be made here -- for investors, too. Take Nike, for example. Last week, shares exploded after the company reported strong earnings for the quarter ended Aug. 31. The absence of any reduced guidance was enough to trigger a rally in the stock. >>5 Stocks You Can Buy at a Discount What was particularly striking about the action in Nike shares was that the stock was priced at a premium to expected growth. The average Wall Street estimate for profit growth from the previous fiscal year, ended May 31, to the current year was 16%. Before the report was released, Nike traded for 19 times current fiscal year estimates. One reason for that premium valuation is that Nike is generating premium profits. The company makes its money off its brand. The Nike Swoosh is now iconic. As a result, the company is able to charge higher prices for its goods. With labor and material costs still low, profit margins are higher at Nike than they would be at a similar company with a lesser-known brand. With that in mind, here are five stocks with premium brands and premium profits.
True Religion Apparel
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