Clothing, both formal and casual, is always a popular choice for Christmas gift giving.
If I didn’t know that before, I certainly learned it when I was with a sportswear trade magazine, and the staff put together Christmas-themed issues with photos of clothing being sold across the globe. The first time I worked on such an issue, I was constantly amazed by the variety of clothing that was available.
With that in mind, I wondered which retail apparel stocks with five-star predictability ratings were undervalued this Christmas season so I used the All-in-One Screener to find such companies around the world. This is what the Screener helped me find.
Next PLC
Next (FRA:NXG, Financial) (LSE:NXT, Financial) is a British-based clothing, footwear and home products retailer; its stock is sold in England and Germany. Founded in 1864, it is the largest clothing retailer by sales in the United Kingdom and Ireland with more than 500 English stores. Another 200 Next stores can be found in continental Europe, Asia and the Middle East.
Next also has more than 3 million active customers through its home shopping catalog and website.
For the fiscal year ending in January, Next reported a profit of £634.9 million (about $948.3 million in American dollars).
The German stock has a market cap of $15.52 billion and an enterprise value of $15.36 billion. It has a P/E of 17.3, a forward P/E of 16.8, a P/B of 36.0 and a P/S of 2.8. GuruFocus has given it a Financial Strength rating of 9/10 and a Profitability and Growth rating of 9/10.
On Wednesday it sold for €104.86 (about $113.77 in U.S. currency) per share.
The English stock has a market of $11.32 billion and an enterprise value of $11.89 billion. It has a P/E of 17.8, a forward P/E of 16.9, a P/B of 37.0 and a P/S of 2.8. GuruFocus has given it a Financial Strength rating of 9/10 and a Profitability and Growth rating of 9/10.
It sold for £72.75 (roughly $108.66 in American dollars) per share Friday.
Invesco European Growth Fund (Trades, Portfolio) has shares of the English stock in its portfolio.
TJX Companies Inc.
TJX Companies (FRA:TJX, Financial) (TJX, Financial) is a Framingham, Massachusetts-based apparel and home goods retail chain whose stock is also sold in Germany. In addition to clothing and footwear, TJX sells bedding, furniture, jewelry, beauty products and housewares. In 2014, TJX reported revenue in excess of $29 billion in U.S. dollars.
The German stock has a market cap of $44.09 billion and an enterprise value of $41.43 billion. It has a P/E of 21.8, a forward P/E of 21.5, a P/B of 11.0 and a P/S of 1.6. GuruFocus has given it a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
It sold for €64.82 (approximately $70.33 in U.S. money) per share Wednesday.
The American stock has a market cap of $46.55 billion and an enterprise value of $46.05 billion. It has a P/E of 21.2, a forward P/E of 21.1, a P/B of 10.7 and a P/S of 1.6. GuruFocus has given it a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
The American stock is popular with gurus. Ruane Cunniff (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Chris Davis (Trades, Portfolio), John Hussman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Scott Black (Trades, Portfolio) and John Keeley (Trades, Portfolio) have shares of TJX in their portfolios.
The stock sold for $69.51 per share Friday.
Ross Stores Inc.
Ross Stores (ROST, Financial) (FRA:RSO, Financial) is a Dublin, California-based chain of department stores doing business under the name of Ross Dress for Less. It opened originally in Pacifica, California, in 1950; today it has more than 1,200 stores in 33 states and sells clothing, footwear, bedding, furniture, jewelry, beauty supplies and housewares. Its stock is sold in the U.S. and Germany.
Ross’ revenue for FY 2012 was $9.72 billion in U.S. currency.
The American stock has a market cap of $21.56 billion and an enterprise value of $21.47 billion. It has a P/E of 21.8, a forward P/E of 21.3, a P/B of 9.2 and a P/S of 1.9. GuruFocus has given it a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
PRIMECAP Management (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Westport Asset Management (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Scott Black (Trades, Portfolio), Jim Simons (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Ray Dalio (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of the American stock in their portfolios.
The stock sold for $53.19 per share Friday.
The German stock has a market cap of $20.55 billion and an enterprise value of $20.33 billion. It has a P/E of 22.5, a forward P/E of 21.8, a P/B of 9.4 and a P/S of 1.9. GuruFocus has given it a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
The stock sold for €49.52 (about $53.73 in American currency) per share Wednesday.
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