3 Best Kids Stocks to Invest in 2012

Retail stocks have been having a good 2012 so far. The total return year-to-date for the S&P Retail Select Industry Index is 16.41%, 11th best out of 23 industry indexes. Virtually every apparel store is having a winning year. February retail sales were broadly positive, and the U.S. economy appears to be getting stronger.
Although gas prices continue to be a major concern, I don’t believe they’ll slow this train down. Retail stocks across all categories should continue their rise for the remainder of 2012. The easiest way to play this is to buy the 3 Best Kids Stocks to Invest in 2012 -SPDR S&P Retail ETF (NYSE:XRT), which seeks to replicate the S&P Retail Select index.
But for those interested in specific stocks, here are three retailers that have stumbled but look set to be comeback kids — and are, therefore, attractive now.

3 Best Kids Stocks to Invest in 2012 - Urban Outfitters

Investing is more about looking forward than backward, and in that respect, Urban Outfitters (NASDAQ:URBN) has much to look forward to. For instance, its online sales grew 16.3% to $505 million in 2012 and now represent over 20% of its total revenue. Retailers intent on sustaining profits must do a good job in this area because the margins are so much higher online than for physical stores.
Today, stores act like billboards telling customers what’s for sale. Rising gas prices combined with worsening traffic congestion and the relative inconvenience of “going shopping” will only make e-commerce more vital with each passing day.
On the inventory front, Urban Outfitters managed to turn it over 6.45 times in 2012 compared to 5.8 times a year earlier, achieving its highest turnover ratio in at least five years. That’s critical when your merchandise has been poorly received. If it isn’t selling, get rid of it quickly and make sure you do a better job next time.
During the first quarter, full-price selling started to return, an indication the merchandise has improved. Lastly, Urban Outfitters plans to open 55 to 60 stores in fiscal 2013, increasing square footage in its retail stores by low double digits. That’s great news. With just 429 stores globally, it has plenty of expansion available when and if it sees fit.
Personally, I’d like to see it stick to the current rate of store openings because bricks-and-mortar retail is expensive. Long-term, Urban Outfitters’ margins will come back and when they do, so too will its stock price, now around $28.

3 Best Kids Stocks to Invest in 2012 -Guess 

What’s happened to Guess? (NYSE:GES). The one-time darling of denim has seen its stock, now trading around $32, lose 15.5% of its value in the last year. Fourth-quarter earnings announced March 14 were mediocre. Management, at a minimum, expects earnings-per-share in 2013 of $2.50 on revenue of $2.74 billion. Analysts were expecting $3.21 per share on $2.84 billion in revenue. This knocked 10% off its stock on March 15.
Guess is definitely on sale. Its enterprise value is now less than 5 times EBITDA. Abercrombie & Fitch (NYSE:ANF), whose operating margins are half those of Guess, has an enterprise value 7.5 times EBITDA.
Guess investors appear to be focusing too closely on its European business instead of its Asian business. While Asia represents less than 10% of Guess’s $2.7 billion in overall revenue, sales there grew by 25% year-over-year. This will become an important part of its business in years to come.
In the meantime, its European and North American businesses are still very profitable. Factor in the fact its North American wholesale and licensing businesses generate operating margins of 25% and 90%, respectively, and what you have is an extremely healthy business. With zero debt and $5 per share in cash, you’re currently paying $11 for $1 in earnings.
Guess shares haven’t been this low since 2009. Same-store sales might be negative, but its long-term prognosis surely isn’t. Guess remains a strong generator of cash, with a stock that’s available at a deep discount. I love it when a stock goes on sale.

3 Best Kids Stocks to Invest in 2012 - rue21

This stock is a classic case of Jekyll and Hyde. rue21 (NASDAQ:RUE) is a value-focused teen fashion retailer that went public in November 2009 to a great deal of fanfare. Priced at $19, it jumped out of the gate fast with a 28% first-day return. Since then, it has tacked on an additional 12.2%.
Unfortunately, its stock is an underachiever. On three occasions in the past 28 months, it hit $35 only to drop back within days. The last time it did this was July 2011, reaching a high of $37.63, only to fall to $22 by September. Since the beginning of 2012, it’s up 24%, and is now just under $27.
It’s on its way back to $35. Positives in 2011 included a revenue increase of 19.8% to $760.3 million, gross margins improving 70 basis points to 37.7% and diluted earnings per share jumping 28% year-over-year to $1.55. The only fly in the ointment was flat same-store sales.
In 2012, rue21 expects same-store sales to grow in the low single digits. Frankly, as long as it continues to expand margins, I couldn’t care less about same-store sales. rue21′s profitability is higher now than it’s ever been, yet its stock trades at a similar valuation to Aeropostale (NYSE:ARO). That’s just nuts. In the immortal words of Charlie Sheen from the movie Wall Street, “It’s a comer!”

Top 9 Financial Stocks to Invest In April For 2012

Mar 22, 2012, 6:30 am EDT   |   By Louis Navellier, Editor, Blue Chip Growth

In the wake of recent Federal Reserve stress tests, some banks are looking better than others. While there are indeed some systemic risks to the financial sector, there are also opportunities for the very best players.
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’ve identified nine financial 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 9 Financial Stocks to Invest In April For 2012 - BlackRock (NYSE:BLK) is an independent investment management firm. In the last year, BLK stock is up 10%. BlackRock stock gets a “B” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of BLK stock.
Top 9 Financial Stocks to Invest In April For 2012 - Mitsubishi UFJ Financial (NYSE:MTU) is a Japanese holding company mainly engaged in the banking business. Mitsubishi Financial has posted a gain of 11% since this time last year. MTU stock gets a “B” grade for operating margin growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for cash flow. For more information, view my complete analysis of MTU stock.
Top 9 Financial Stocks to Invest In April For 2012 - U.S. Bancorp (NYSE:USB) provides its customers with lending and depository services, cash management, foreign exchange and trust and investment management services. Since this time last March, USB is up 19%. USB stock gets an “A” 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, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and a “B” grade for return on equity. For more information, view my complete analysis of USB stock.
Top 9 Financial Stocks to Invest In April For 2012 - Sumitomo Mitsui Financial Group (NYSE:SMFG) is another Japanese financial services-related company to make the list. Sumitomo Financial has jumped 9% in the last 12 months. SMFG stock gets a “B” grade for earnings momentum, an “A” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of SMFG stock.
Top 9 Financial Stocks to Invest In April For 2012 - BB&T (NYSE:BBT) owns the commercial banking subsidiary, Branch Banking and Trust Company, and has posted a gain of 16% since last March. BB&T stock gets an “A” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for earnings momentum, an “A” grade for the magnitude in which earnings projections have increased over the past months, and a “B” grade for cash flow. For more information, view my complete analysis of BBT stock.
Top 9 Financial Stocks to Invest In April For 2012 - Banco de Chile (NYSE:BCH) provides a range of credit and non-credit products and services to its Chilean customers. Banco de Chile is up 23% in the last 12 months. BCH stock gets an “A” grade for return on equity. For more information, view my complete analysis of BCH stock.
Top 9 Financial Stocks to Invest In April For 2012 - Credicorp (NYSE:BAP) is involved with banking, pension funds, insurance and brokerage services. BAP stock has outpaced the broader markets with a gain of 21% in the last year. Credicorp stock gets a “B” grade for sales growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and an “A” grade for return on equity. For more information, view my complete analysis of BAP stock.
Top 9 Financial Stocks to Invest In April For 2012 - American Express (NYSE:AXP) is best known for its charge and credit payment card products. Since last March, American Express stock has gained 29%. AXP stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow, and an “A” grade for return on equity. For more information, view my complete analysis of AXP stock.
Top 9 Financial Stocks to Invest In April For 2012 - Discover Financial Services (NYSE:DFS) is also best known for its credit card service. Since last March, Discover stock has posted the biggest gain on this list at 45%. DFS stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and an “A” grade for return on equity.

Top 4 Restaurant Stocks To Buy Right Now

With consumer confidence showing some signs of life, a few select restaurant and eatery stocks are looking to benefit. As more Americans resume eating out instead of cooking at home, some of these companies will benefit.
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, we’ve found four high-growth restaurant 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 4 Restaurant Stocks To Buy Right Now - McDonald’s (NYSE:MCD) is perhaps the most well-known fast-food chain in the world. In the last year, McDonald’s stock has posted a gain of 34%, compared to a gain of 11% for the Dow Jones in the same time. MCD stock gets a “B” grade for earnings growth and an “A” grade for return on equity. For more information, view my complete analysis of MCD stock.
Top 4 Restaurant Stocks To Buy Right Now - Starbucks (NASDAQ:SBUX) operates an international chain of specialty-coffee restaurants. SBUX stock has posted a gain of 54% since this time last year. Starbucks stock gets a “B” grade for sales growth, a “B” grade for operating margin growth, 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 SBUX stock.
Top 4 Restaurant Stocks To Buy Right Now - Yum! Brands (NYSE:YUM) is known for owning the chains KFC, Pizza Hut and Taco Bell. Since last March, YUM stock has jumped 38%. YUM 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 YUM stock.
Top 4 Restaurant Stocks To Buy Right Now - Chipotle (NYSE:CMG) operates more than 1,200 Mexican restaurants predominantly in the U.S. Chipotle stock has gained 67% in the last year, compared to smaller gains by the broader markets. CMG 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, an “A” grade for cash flow and a “B” grade for return on equity. For more information, view my complete analysis of CMG stock.

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.