Apparel stocks continue to stand out and score big gains despite a shaky uptrend for the stock market. Five apparel retail stocks for your watch list are: Canada Goose (GOOS), VF Corp (VFC), PVH Corp (PVH), Lululemon Athletica (LULU) and Tapestry (TPR).
Top-Rated Apparel Retail Stocks
Lululemon Athletica leads these five apparel makers and retailers with a highest-possible IBD Composite Rating of 99. Canada Goose is close behind with a 98, while PVH Corp earns a 96. VF Corp has a 94 Composite Rating and Coach parent Tapestry has a 91. The Composite Rating measures a stock based on a variety of fundamental and technical factors. The best stocks tend to have a 95 or better as they launch big moves.
Canada Goose
March 2017 IPO Canada Goose is trading about 4% below its prior high of 38.25. The potential buy point is 10 cents above that, at 38.35. The outerwear retailer has risen about 185% since going public.
VF Corp.
VF Corp., whose brands include Vans, Wrangler, Nautica and North Face, is climbing up the right side of a cup base. Shares are trading 4% below an 84.48 entry ahead of earnings on May 4. A big gap-down after VF Corp.’s last quarterly report has made for an irregular-shaped base.
PVH Corp.
PVH Corp. remains in buy range after clearing a 158.06 buy point from a flat base in early April. Shares have been hovering around the 160 mark since the breakout. PVH has a relative strength line that’s been trading sideways, but it’s also trading near highs. The RS line measures a stock’s price performance vs. the S&P 500.
Lululemon Athletica
Since reporting earnings in late March, Lululemon shares have fallen only four out of 22 sessions. The Leaderboard member is now nearing the 100 price mark. Lululemon is well extended from its last buying opportunity, a bounce off the 50-day, but another pullback or tight trading action could provide another entry. Lululemon has a strong RS line at highs, further supporting the strong price action.
Tapestry
Tapestry, the company behind the Coach and Kate Spade brands, is well-extended as well. As shares are hitting a new high Friday, the RS line is at a new high too. The stock is now up 19% since breaking out of a cup-with-handle base with a 45.90 buy point. When a stock becomes 20% to 25% extended past a buy point, that’s usually a good time to take at least partial profits. And with earnings due on May 1, holding the stock requires a high level of conviction.
