Eileen's picks

Bianca's new pick

Rating: 1.52 not yet rated(23 votes)    Vote:

You are logged in as | Logout

Everybody including Bianca loves == Aeropostale == apparel for young people. Get the look. Great clothes, great prices, great sales. Like right now, there's a 50% off sale right from the company.

And we got the stock on sale too. We had a limit order in from the beginning of the competition, and it triggered on the day the stock split. Unfortunately, the price has slipped a bit today, but it's probably related to the split. It's back-to-school buying time. And there will be another wave of purchases after kids are back at school and see what "everybody" is wearing, then another burst for winter clothes buying as the weather gets cold and then, of course, Christmas. Because the brand is "in" and affordable, Santa places big orders.

ARO is just what we were looking for as a company and a stock - except it's small cap instead of large cap. Unfortunately, none of the apparel makers who passed the Bianca style test were large cap, so we're going to fill out our large cap purchases from a different type of consumer goods.

Besides style, a good stock price and the likelihood of strong sales growth from now to the end of the year, why did we decide to buy Aeropostale (ARO)?

Morningstar: B+ in growth, A+ in profitability and A+ in financial health

MSN Money StockScouter rating: A perfect 10 "Aeropostale Inc, a mid-cap value company in the consumer services sector, is expected to significantly outperform the market over the next six months with less than average risk. The StockScouter measure of relative price change and consistency is very high. Very positive"

StarMine ratings (opinions of the analysts with the best record -- 75%+ accuracy --of making recommendations on a particular stock): 3 of 5 say buy

And so we did.

For more detail on how Bianca researches the stocks she picks, click here. There's more about Bianca in my profile.