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The Zacks Analyst Blog Highlights: Lululemon Athletica, Amazon, Perry Ellis International, PVH and Oxford Industries

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For Immediate Release

Chicago, IL – Dec 8, 2017 – 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 includeLululemon Athletica (LULU - Free Report) , Amazon (AMZN - Free Report) , Perry Ellis International, Inc. , PVH Corp. (PVH - Free Report) and Oxford Industries, Inc. (OXM - Free Report) .

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Here are highlights from Thursday’s Analyst Blog:

3 Apparel Stocks to Buy as LULU Hits New High

Shares of Lululemon Athletica surged over 7% on Thursday after the athleisure power posted strong Q3 earnings. This move helps show investors that retail and apparel is not doomed, especially if you look in the right places.

Lululemon stock hit a new 52-week intraday trading high of $73.84 per share after it reported an 8% climb in third-quarter comparable store sales. On top of that, the Canadian apparel company grew its direct-to-consumer sales by 26%.

Of course, the retail and apparel world has likely been altered permanently thanks to the likes of Amazon. But some companies within the apparel world are doing well.

Now, after Lululemon’s strong third-quarter, let’s take a look at three other apparel firms that might give retail investors confidence that if you find the right company, with the right fundamentals, this industry can still provide winning stocks.

1.      Perry Ellis International, Inc.

This well-established men’s apparel company is currently a Zacks Rank #2 (Buy). On top of its high Zacks Rank, Perry Ellis also sports an overall “A” VGM grade, bolstered by “A” grades for both Value and Growth in our Style Scores system.

Last week, Perry Ellis reported fiscal third-quarter net income of $3.2 million, a nice improvement from the loss reported in the year-ago–period.

The company is currently trading at just 11.26x earnings, which marks a nearly 50% discount compared to the “Textile – Apparel” industry average. Furthermore, Perry Ellis’ 1.14 P/B ratio and P/S ratio of 0.45 not only compare favorably against its industry, but also help demonstrate that the company currently offers great value for investors right now.

What’s more, based on our Zacks Consensus Estimates, Perry Ellis’ Q4 revenues are projected to pop 11.81%, while the menswear company’s earnings are expected to soar 36.36%.

Before today’s 2% jump, shares of Perry Ellis gained 5.49% over the last four weeks, but the stock still rests below its 52-week high and could have more room to grow.

2.       PVH Corp.

The owner of brands such as Calvin Klein and Tommy Hilfiger is currently a Zacks Rank #2 (Buy) and earned an overall “A” VGM score. Shares of PVH have surged nearly 48% since the start of the year, which crushes both its industry’s average and the S&P 500’s 15.86% climb. Still, in spite of their climb, PVH shares rest around $5 below their 52-week high.

At the end of November, PVH posted Q3 sales that rose 5% year-over-year. The company, in turn, raised its full-year sales guidance and now expects growth of 7%. Looking ahead to the fourth-quarter, our current Zacks Consensus Estimates call for PVH’s EPS to jump 16.40%, while we expect its revenues to hit $2.34 billion for the quarter, which would mark a 10.82% year-over-year increase.

PVH is currently trading at 17.13x earnings, which marks a discount compared to its industry’s average. On top of that, PVH’s 1.97 price to book ratio also rests below the industry average. The company’s 1.20 P/S ratio is also very competitive, besting the likes of rival Ralph Lauren, and helps further demonstrate PVH’s value to investors.

3.       Oxford Industries, Inc.

Shares of this menswear company jumped past their previous 52-week high on Thursday, just days after Oxford Industries beat third-quarter earnings estimates. Oxford Industries reported quarterly net income of $1.1 million, up from a loss a year ago.

The owner of the Tommy Bahama, Southern Tide, and Lilly Pulitzer is currently a Zacks Rank #2 (Buy) and sports an overall “A” VGM grade—which is supported by “A” grades for both Value and Growth in our Style Scores system.

Oxford Industries’ fourth-quarter earnings are projected to climb nearly 50% and reach $0.94 per share, based on our current Zacks Consensus Estimates. Our estimates also call for the company’s Q4 sales to hit $294.23 million, which would mark a 12.71% year-over-year gain.

Oxford Industries’ P/E ratio currently matches the “Textile – Apparel” industry average of 19.61. The company’s 1.15 price to sales ratio fares well compared its industry’s average and helps demonstrate that Oxford Industries offers a solid return on investment.

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