There is something about clothing store companies that appeal to me. I hate to go shopping I really do - but it seems as though my wife and her friends LOVE to go shopping. Even this past weekend the guys I went to high school with keep talking about CLOTHES! I mean I guess men really are the new women. I just see so much opportunity and profitability in clothing so I am starting to look a lot more closely than I ever have in the sector. Now when I ask my wife is there "1" company that is just the be all end all of clothing companies. She couldn't answer right away. I was looking for the golden company and it just doesn't exist. People have very different tastes. I was glad she gave that answer because that made me dig deeper. What clothing companies are undervalued right now?
I ran a screen for apparel stores that are based in the US - sorry LULU.
I organized by P/E - this stock is ranked #1.
Find out what's happening in Cranstonwith free, real-time updates from Patch.
Forward P/E- #2
PEG - #3
Find out what's happening in Cranstonwith free, real-time updates from Patch.
P/FCF - #1
ROA - #1
ROE - #4
ROI - #1
Operating Margin - #5
Net Profit Margin - #6
Sales per sq foot of retail space - #1
Now in the past year it is down 41%!
Well what kind of crazy news happened that this clothing company is being hammered? An earnings miss. Big WHUPDEEDOO! They have no debt and are buying back an amazing amount of shares at these prices! Look at the valuation! Are you kidding me?!!
Now know this is only one location but at my local mall today (4th of July) - the store with the most amount of people in it and the most amount of people in line - BUYING - was in Aero. They have strategically placed their stores near the food courts at both local malls - unlike the other retailers who are so far away from everything.
The company is Aeropostale and the ticker is ARO.
*Please note that I am not a registered investment advisor and you should speak to a registered professional before making any investment decisions.
