If you think retail is a boring place for investment, think again. The last couple months have brought the announced buyouts of Gymboree and J. Crew. A deal for the latter was made public just yesterday, and these buyouts suggest that the space still holds some bargains ... if you purchase the right company. And heck, you don't even have to get up early to get these doorbuster deals.
So to flesh out some of those possibilities, I asked some of my fellow analysts to find some cheap retail stocks that look set to benefit from the holidays. Read on!
Rich Smith, Fool contributor
A former franchise of Limited Brands, Express had been scooped up by private equity, loaded with debt, then foisted back on an unsuspecting market. The few analysts recommending Express -- Bank of America
But the more I looked, the more I liked. (And the more shares I bought.) Comps are climbing, and profit is strong. Best of all, this below-the-radar retailer sells for barely [eight times] annual free cash flow -- but perhaps not for long.
All month long, we've heard retailers report boffo earnings, as consumers reopen their wallets. Wanna bet Express hopped on that profit train, too? Better decide quick -- Express reports Q3 earnings in just one week.
Chuck Saletta, Fool contributor
Sometimes, the best values are staring you straight in the eye. With over $400 billion in annual revenue, Wal-Mart
Add to it a respectable 2.2% dividend yield and a 36-year history of regularly raising that payment to its owners, and you have a stock worth owning today and well into the future.
April Taylor, CFA, Fool contributor
Like the jeans and hoodies in its stores, Aeropostale
So there you have it: Three bargain-priced retail stocks that look set to do well this holiday season.
Have another Black Friday retail bargain for readers? Share some of yours in the comments section below.
Jim Royal, PhD., does not own shares of any company mentioned. Wal-Mart is a Motley Fool Inside Value choice and a Global Gains recommendation. The Fool owns shares of Aeropostale, Bank of America, and Wal-Mart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.