Top 6 Fashion Stocks to Invest in 2012

While consumer spending overall hasn’t been great through the financial crisis and economic downturn, high-end merchandisers have thrived. That goes for companies that sell shoes, clothes and even handbags. High-quality and high-fashion goods are always in demand among the elite shoppers of the world, and related companies have profited as a result.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I present six high-fashion stocks to buy.
Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.” Here they are:
Top 6 Fashion Stocks to Invest in 2012 - Coach (NYSE:COH) is a designer of high-end accessories, with a focus on women’s handbags. In the last year, COH is up 57%, compared to the Dow Jones, which is up 11% in the same time. Coach stock gets a “B” grade for sales growth, a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of COH stock.
Top 6 Fashion Stocks to Invest in 2012 - Luxottica (NYSE:LUX) is an Italian designer and retailer of prescription frames and sunglasses. In the last 12 months, Luxottica stock is up 18%. LUX stock gets an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for return on equity. For more information, view my complete analysis of LUX stock.
Top 6 Fashion Stocks to Invest in 2012 - Nike (NYSE:NKE) is a designer, developer and marketer of sport footwear, apparel, equipment and accessories. In the last year, NKE has reported a significant gain of 44%. Nike stock gets a “B” grade for sales growth, a “B” grade for earnings momentum and an “A” grade for return on equity. For more information, view my complete analysis of NKE stock.
Top 6 Fashion Stocks to Invest in 2012 - Ralph Lauren (NYSE:RL) is famous for its men’s, women’s and children’s apparel, accessories, fragrances and home furnishings. RL has outpaced the broader markets with a gain of 51% since last March. Ralph Lauren stock gets a “B” grade for sales growth, a “B” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of RL stock.
Top 6 Fashion Stocks to Invest in 2012 - VF (NYSE:VFC) is global apparel company based in the U.S. and has watched its stock value soar 60% since last March. VFC stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for earnings momentum and an “A” grade for return on equity. For more information, view my complete analysis of VFC stock.
Top 6 Fashion Stocks to Invest in 2012 - Lululemon  (NASDAQ:LULU) designs and retails technical athletic apparel. Lululemon rounds out our list with a gain of 93% in the last year. LULU stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “A” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool.