With Black Friday approaching, everyone wonders what type of sales the holiday season will bring for apparel stocks. I have three small cap apparel stocks that look like good potential targets seeing that they are trading down near their 52-week lows. Holiday shoppers always provide a boost in sales for apparel stocks, and that mad dash to stock up the base of the Christmas tree begins on Black Friday. So, without further ado:
Oxford Industries (OXM) has a market cap of $1.13 billion and a share price of $67.96 per share as of November 10, 2015. They have a price target of $94 per share and a 52-week range between $49.46 and $90.93 per share. Sidoti initiated coverage and issued a ‘BUY’ rating on October 26, 2015 for Oxford Industries, which calls for an increase of at least 25% over the next 12 month period from the date of coverage.
Oxford Industries was founded in 1942 and is headquartered in Atlanta, Georgia. The company is an apparel company offering its products through the Tommy Bahama, Lilly Pulitzer, Ben Sherman and Oxford Golf brands. Other popular brands under the Oxford Industries umbrella include Kenneth Cole, Dockers and Geoffrey Beene. As of January 31, 2015, the company operated 157 Tommy Bahama, 28 Lilly Pulitzer, and 21 Ben Sherman retail locations.
Perry Ellis International (PERY) has a market cap of $336 million and a share price of $21.31 per share as of November 10, 2015. They have a price target of $30.20 per share and a 52-week range between $20.70 and $28.19 per share. Sidoti initiated coverage and issued a ‘BUY’ rating on September 18, 2015 for Perry Ellis, which calls for an increase of 25% over the next 12 month period from the date of coverage.
Perry Ellis International was founded in 1967 and is headquartered in Miami, Florida. The company is an apparel company offering its products through various brands including Axist, Ben Hogan, Cubavera, Farah, Gotcha, Grand Slam, Jantzen, John Henry, Laundry by Shelli Segal, Manhattan, Original Penguin by Munsingwear, Perry Ellis, Rafaella, and Savane. It also licenses the Callaway Golf, PGA Tour, Jack Nicklaus, Nike, Pro Player and Musingwear brands. As of April 1, 2015, the company operated 45 Perry Ellis, 28 Original Penguin, 2 Cubayera, and 3 multi-brand retail outlet stores in the United States, United Kingdom and Puerto Rico.
Sequential Brands Group (SQBG) has a market cap of $446 million and a share price of $11.14 per share as of November 10, 2015. They have a price target of $19.43 per share and a 52-week range between $8.67 and $18.59 per share. ROTH Capital and Brean Capital both reiterated a ‘BUY’ rating for Sequential Brands on June 23, 2015.
Sequential Brands Group was incorporated in 1982 and is headquartered in New York, New York. The company is an apparel company offering its products through the suite of brands Avia, AND1, Ellen Tracy, William Rast, Revo, Caribbean Joe, Heelys, DVS, The Franklin Mint, Jessica Simpson, Joe’s Jeans, Joe’s, Joe’s JD and else.
Remember to always do your own research and due diligence before investing, but I believe these three small cap stocks could add some solid gains to your portfolio heading into the holiday season. One thing for sure with apparel stocks is that they always have the best sales of the year before they end up under the Christmas tree or in the stocking.
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