Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chico's FAS (NYSE: CHS) are back in fashion! The women's retail clothier missed earnings estimates this morning, but beat on sales, which rose 9% to $475 million for the quarter. Even better, management forecast "low teen percentage" growth in 2011, which when paired with a promised "slight" improvement in gross margins, promises outsized profits over the quarters to come.

So what: An earnings miss in rarely good news, but investors are in a forgiving mood. Taking a "two-outta-three-ain't-bad" approach to the news, they're bidding Chico's shares up 10% in early trading today.

Now what: At 20 times earnings, Chico's shares now fetch a significant premium to those on the rack at rivals like Ascena Retail (Nasdaq: ASNA), Macy's (NYSE: M), and Nordstrom (NYSE: JWN). On the other hand, most analysts expect Chico's to outgrow both of these competitors by a sizeable margin -- and significantly, to beat higher-priced Talbot's (NYSE: TLB) growth rate as well.

That alone makes Chico's shares look like a bargain -- but what really gets me interested in the stock is the fact that the $166.6 million in free cash flow that Chico's generated last year exceeds reported net income by more than 44%. When you pair Chico's 17% growth rate with a price-to-free cash flow ratio of less than 14, I'd say Chico's shares aren't just fashionable today -- they're downright stylin'!

Want to learn more about this underfollowed, undervalued retailer? Add the stock to your Fool Watchlist.

Fool contributor Rich Smith does not own shares of, nor is he short, any company named above. The Motley Fool has a disclosure policy.

Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.