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Released on Thursday, December 1, 2011, 8:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - Clothing stocks tend to catch a lot of investors eyes around this time of year. Investors just seem to gravitate towards clothing stocks with clothes on their minds. Clothes are one of the most popular items gifted during Christmas.
We have researched several stocks that are gaining momentum. We believe clothing stocks that have momentum now are the ones that will continue to benefit through the Christmas season.
A stock that is very Christmas friendly is American Eagle Outfitters, Inc. (NYSE:AEO) with their embrace of the Christmas season and special offerings. AEO has charged from $10.00 to over $14.00 since early September. AEO has a 52-week high of $16.37, which we would not be surprised to see challenged.
A clothing retailer that has been catching others on the scene is True Religion (NASDAQ:TRLG). We followed TRLG as far back as March 2005 when it was trading at $11.56 a share. TRLG is now trading at $34.52 a share. Its brand is attractive and sexy and they have taken True Religion main stream. Their website has been mainstreamed and has a great look to it now: http://www.truereligionbrandjeans.com/. TRLG is trading at a market cap of around $866 million and a PE of around 18.67. TRLG has a strong balance sheet with cash and cash equivalents of $153+ million. They are well positioned to move into the next level of the clothing industry.
One of our Trending Stocks (see top right of SpeculatingStocks homepage) on Thursday was a clothing stock, Bon-Ton Stores, Inc. (NASDAQ:BONT). Bon-Ton shares moved $0.52 to $3.15 for a one-day move of 19.77%. BONT is struggling with a poor balance sheet and significant long-term debt. It has garnered some momentum with its move during Thursday’s market though.
Also, don’t forget JC Penney’s (NYSE:JCP). This is a company that we discussed in detail during mid-September in a piece titled “A Little Apple Magic for JCP.” JCP was trading at around the $25.00 level then and is now at the $32 level. We continue to expect JCP to be a long-term winner.
Find more stocks on the SpeculatingStocks homepage.
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