Small-Cap Retail Stocks: Quick Take

NEW YORK (TheStreet) -- TheStreet's David Peltier is on the lookout for stocks trading for less than $10 that can deliver big returns.

One sector that has caught Peltier's eye is small-cap retail. Specifically, he's looking at Pacific Sunwear ( PSUN), which has doubled so far this year.

However, Peltier doesn't think loading up on the name is necessarily a good idea right now. "The company is not even supposed to be profitable for another year," he added.

Some other retailers he pointed out were Wet Seal ( WTSL) and New York & Company ( NWY), both of which have performed very well year to date as well.

"All these stocks are up at least 50%, 70%, if not 100%, year to date. I'd like to see a pullback before buying any of these names," he concluded.

-- Written by Bret Kenwell in Petoskey, Mich. .

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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