Retirement investors may be surprised to learn that some of the
best stocks to buy right now are actually luxury stocks and
consumer discretionary plays. While it's true that overall spending
isn't quite as impressive as it was before the financial crisis,
many luxury stocks, clothing companies and discretionary retailers
are doing big business. A consumer stock that manufacturers shoes
or jeans may be a perfect fit for your
), a Canada based clothing company that sells its goods to to
screenprinters in North America and Europe. Gildan stock is up
about 30% year-to-date in 2010, and has more than doubled in the
last year. GIL stock continues to set new highs and shows no sign
of slowing down.Whether you favor
high yield dividend stocks
or whether you're a more aggressive investor, you simple have to
take notice that this mid cap stock is making noise right now.
Some investors think that breakneck growth like that can only be
found in the best emerging markets. And while its true that
in Brazil, India, China and Russia can have big growth they can
also come with big risk. When you buy a Western company like this,
you don't have to worry about foreign currency exchange rates or
political unrest. You just have to focus on the sales and the
Another example is
), a yoga-inspired apparel company that provides trendy but
functional athletic clothing. LULU stock has done even better, with
47% gains since January 1 and a whopping +236% gain the last
And then there's one of my favorite small-cap stocks,
). This fashionable footwear company caters primarily to America's
biggest spending machine - teenagers. The stock is up +43%
year-to-date and is up nearly +350% in the last 12 months! (Full
disclosure: I just recommended this small-cap stock to readers of
So what gives? Why is it that discretionary stocks focused on
sneakers, yoga pants and athletic socks can be doing so well if
consumers are holding back on spending?
Well frankly, because clothing doesn't last. Either stuff goes
out of style, your kids outgrow their shoes or you just plain wear
out your wardrobe. Consumers can only put off their spending for so
long. Equally important is that many of the apparel stocks I'm
watching right now cater to the upper echelon of consumers who just
plain haven't been hurt by the recession - or at least want to keep
), a company that sells premium jeans for a few hundred dollars as
well as pricey shoes, jackets and accessories. Not exactly a retail
play for the recession, right? Well JOEZ stock is up +70% in 2010
so far and has tripled in the past year. So much for a lack of
consumer spending! What's more, Joes Jeans has a
in the single digits right now, indiciating this stock is far from
And don't think that a rising tide will lift all boats in the
clothing and luxury goods sector. The bottom line is that some
companies are indeed struggling because they fail to connect with
consumers, whether about the price point of their products or
because of bad taste.
That's another reason I'm so bullish on Skechers USA. The
billion-dollar-plus company offers 3,000 styles of trendy footwear
in all different shapes and sizes for men, women and children. And
recently, the company announced that it will begin producing a new
line of Skechers-branded backpacks, messenger bags and totes.
Skechers expects the bags to hit store shelves this fall - just in
time for school. This stock clearly isn't resting on its laurels
and wants to keep the momentum going.
If you're shopping for a clothing or luxury stock to diversify
your portfolio, here are my 12 favorites right now as identified by
my stock rating database, Portfolio Grader:
Symbol Stock Name
Market Cap (
PG Grade GIL Gildan Activewear Inc.
Strong Buy LULU Lululemon Athletica Inc.
DECK Deckers Outdoor Corp.
SKX Skechers USA Inc. (Cl A)
SHOO Steven Madden Ltd.
GIII G-III Apparel Group Ltd.
UFI Unifi Inc.
CFI Culp Inc.
JOEZ Joe's Jeans Inc.
DLA Delta Apparel Co.
DFZ R.G. Barry Corp.
BOOT LaCrosse Footwear Inc.
simple trading strategy
is to follow the money - and many of these stocks have doubled in
the last year. That means if you're a momentum investor or you
place a premium on growth instead of
, these stocks may be right for you.
Full disclosure: As of this writing, Louis Navellier was
recommending Skechers in his Emerging Growth
About Portfolio Grader: Every Sunday, renowned growth stock
expert Louis Navellier runs a fundamental analysis on the top
5,000 Wall Street companies. Armed with this research, Navellier
offers a rating for each company reflected as a simple letter
grade, with A being "strong buy" and F being "strong sell."
Portfolio Grader's stock data is free and open to the
public and can be accessed online here
us what you think here.