The Gap Inc. (GPS), Limited Brands, Inc. (LTD): Your Cheatin’ Heart and Your Portfolio

Bebe Stores is a speculative small-cap name ($442.83 million) and only covered by four analysts but it does have a yield of 1.90%. The stock is down 4.94% over the last year and has a short interest of 11.80%. Nonetheless, it has a large insider hold of 59.52%.

The company operates 244 stores in the US, US Virgin Islands, Canada, Puerto Rico, and Japan and internationally licenses its bebe, 2b, and BEBE SPORT brands aimed at the 21-34 year old woman.

On June 27 the stock rose 6% on a positive Janney Capital Markets analyst note. Analyst predict a15.00 % five year EPS growth rate, same as The Gap. It is a volatile name but one to inspire some due diligence for a small flutter (Britspeak for tiny bet.)

Limited Brands, Inc. (NYSE:LTD), owner of Victoria’s Secret, Pink, La Senza, Bath & Body Works, and Henri Bendel for over 3,300 stores worldwide as well as the much-admired catalogs and e-commerce sites. Limited Brands, Inc. (NYSE:LTD) offers the highest yield of these four names at 2.30% with a trailing P/E of 18.84 and a forward P/E of 14.03. The PEG stands at 1.55.

The company reported a 3% rise in same store sales in May and also reported Q1 net sales at $2.268 billion and EPS rose 17% from Q1 in 2012. The company has strong insider conviction with CEO and founder Leslie Wexner holding over 17 million shares.

It recently honored its Pink brand, the very popular line for collegiate age girls, to freestanding store status. Its Victoria Secret and Bath & Body Works command a dominant position in fragrance and lingerie.

Although the stock has underperformed the S&P 500 this last year it has been a five bagger since 2009. Over the last five years the dividend has grown by 64.92%.

Cheaters never prosper

But they do like to dress well and spend twice as much money doing it.

I like the yield and dividend growth at Limited Brands, Inc. (NYSE:LTD) best but Gap is making some progress with Piperlime and Athleta that bears watching. Ascena Retail needs to show improving earnings and accretion from Lane Bryant and Catherines. Bebe Stores is interesting as a speculative trade.

Caveat for the gentlemen: don’t rifle through your lady’s closet for these brands. Millions of women wear them because these are popular brands. That’s why you want to buy the stocks. Trust your bride and buy her some roses and a Victoria’s Secret gift card.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Ascena Retail Group (NASDAQ:ASNA).

The article Your Cheatin’ Heart and Your Portfolio originally appeared on Fool.com and is written by AnnaLisa Kraft.

AnnaLisa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!