NEW YORK (Real Money) -- Apparel stocks have been so hit or miss in the last few years that I can't blame anyone for taking a pass from them. But right now they are all hit and you can't really pass them up.
That's my takeaway from the parade of retail earnings we have seen: Almost every stock in the apparel group is a buy, except, oddly, the one area that had been hot -- accessories, namely handbags. It seems as if you can't give those away, as people who are wallowing in Coach (COH) , Kate (KATE) and Kors (KORS) know all too well.
Now some of the apparel companies have been strong from ages. Take Under Armour (UA) . Earlier this spring, the sports-apparel company reported a terrific quarter in every fashion. But UA doesn't trade with the apparel cohort. It trades with the high-growth, high-multiple contingent. Its stock fell as if it were a cloud, Internet e-commerce or biotech company. The rollover was, frankly, absurd. The plummet from $62 to $46 beginning in March and ending with a tripe bottom in May was just plain hideous.
Yet the company just kept delivering, and when Under Armour reported another solid quarter in July, after the high-multiple swoon was over, the stock took off like a rocket, as it should have in March, and has kept climbing since. The bounce from $46 to $72 has been breathtaking, and even though it is now one of the most expensive stocks that I follow at 49x earnings with a $15 billion valuation, I expect the terrific performance to continue. Yes, I would, cowardly, buy it only on a pullback, but when you get pullbacks, most people are too scared to pull the trigger. Don't be.