U.S. Markets close in 2 hrs 47 mins

The Zacks Analyst Blog Highlights: SPDR S&P Retail, Tiffany, Restoration Hardware Holdings, Hanesbrands and Maidenform Brands

Zacks Equity Research

For Immediate Release

Chicago, IL – July 25, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include SPDR S&P Retail (XRT-Free Report), Tiffany & Company (TIF-Free Report), Restoration Hardware Holdings, Inc. (RH-Free Report), Hanesbrands Inc. (HBI-Free Report) and Maidenform Brands, Inc. (MFB-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Improving Economy: 3 Retail Stocks to Bet On

Banking on its wide spectrum, the retail sector remains a lucrative investment opportunity for investors. Moreover, the sector showcases consumer confidence and spending patterns, which are the important parameters to gauge the health of the economy.

So far this year, the broader markets have portrayed signs of a better pace of recovery and have thus sparked hopes of a better economic scenario going forward. The significant recovery in the stock market is reflected through strong gains for the broader market indices. S&P 500 has clocked gains of roughly 15.7%, while Dow Jones Industrial Average has gained approximately 16.1% so far this year.

The belief of an economic recovery might just have got stronger with the consumer confidence hitting a multi-year high. A recent Conference Board data suggested that Consumer Confidence Index improved to 81.4 in Jun 2013 from a revised 74.3 in May 2013. The index notched its highest level since Jan 2008, when it had touched 87.3.

This prompts a sense of optimism about steady increase in consumer spending going forward. Consumer spending accounts for over 2/3rd of the U.S. economic activity.

A recovery in the housing market, stock prices gaining momentum and improving labor market condition played vital roles to help the consumer confidence move north and also brought the retail stocks back to the center stage. A reflection of that was evident from the SPDR S&P Retail (XRT-Free Report) surging roughly 29% year-to-date.

Thus, identifying the future winners from the sector would be a prudent idea to make an investment decision.

Three Stocks That Can Enrich Your Portfolio

Here we focus on three Zacks Rank #1 (Strong Buy) stocks with above-average earnings growth that you can capitalize upon and enrich your portfolio.

We suggest investing in Tiffany & Company (TIF-Free Report), which holds a significant position in the world jewelry market. Its long-term growth prospects remain encouraging given its new product launches and focus on enhancing its geographic reach through store expansion program. Though the stock looks a bit pricey with a P/E (price-to-earnings) multiple of 22.37x, it should not disappoint investors given the company’s long-term expected earnings growth of 13.2% compared with 9.4% for the peer group.

Another stock that investors may look forward to is Restoration Hardware Holdings, Inc. (RH-Free Report). Shares of this luxury home furnishings retailer have amassed a year-to-date return of roughly 104%. The company’s long-term estimated EPS growth rate is 25.8%, higher than the peer group average of 17.2%. Moreover, this Corte Madera, Calif. based company is expected to witness earnings growth of 46% in fiscal 2013 and 25% in fiscal 2014.

Hanesbrands Inc. (HBI-Free Report), one of the leading players in innerwear, casual wear and active wear markets in the U.S., is another stock to bet on. We remain impressed with the company’s strong portfolio of brands and its continuous innovations. The company is gaining shelf space at major retail stores through various deals with retail giants.

Ahead of the opening bell today, the company announced that it is acquiring Maidenform Brands, Inc. (MFB-Free Report), an intimate apparel company, for approximately $575 million in cash. The acquisition, which is expected to close in the fourth quarter of 2013, will add brands such as Maidenform, Control It!, Fat Free Dressing, Flexees and Lilyette to Hanesbrands already popular portfolio.

Shares of the Winston-Salem, NC-based Hanesbrands currently trades at a forward P/E of 15.50x, a discount of 13.2% to the peer group average of 17.86x, suggesting upside potential. Moreover, an impressive long-term expected earnings growth of 14% versus 12.2% for the peer group makes the stock attractive.

We believe that the above stocks with strong fundamentals and growth prospects are capable of quenching the investors’ search for right stocks.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on XRT - FREE

Get the full Report on TIF - FREE

Get the full Report on RH - FREE

Get the full Report on HBI - FREE

Get the full Report on MFB - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339



Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on XRT

Read the analyst report on TIF

Read the analyst report on RH

Read the analyst report on HBI

Read the analyst report on MFB

Zacks Investment Research

More From Zacks.com