Why We're Buying Aeropostale

The video below is part of The Motley Fool's "11 O'Clock Stock" series, where we're recommending a new stock every weekday at 11 a.m. ET on Fool.com for 50 weekdays. To see a video of co-founder Tom Gardner explaining the series, click here. To see our original recommendation of Aeropostale (NYSE: ARO  ) , click here.

Looking for a great back-to-school deal? How about trying on some shares of Aeropostale? Fool writer Alyce Lomax thinks Aeropostale provides a great opportunity at today's prices. To see her thoughts, watch the video, then read on below:

Alyce Lomax says Aeropostale's focus on high-quality clothes at affordable prices puts the retailer in an advantageous position in today's market. Beyond that, the company has a sturdy balance sheet with more than $300 million in cash, so it's also a defensive play. Compared to competitors Abercrombie & Fitch (NYSE: ANF  ) , and Pacific Sunwear of California (Nasdaq: PSUN  ) , the stock looks pretty cheap, too, trading at just 10 times earnings. If you're looking for a retailer that's attractively priced and more than able to weather the recession, look no further than Aeropostale.

Alyce Lomax does not own shares of any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. The Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1273897, ~/Articles/ArticleHandler.aspx, 12/21/2014 7:38:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement