The Men’s Wearhouse, Inc. (MW), Jos. A. Bank Clothiers Inc (JOSB): Buy 1, Sell 2 Menswear Stocks

Although at first look Fifth & Pacific Companies Inc (NYSE:FNP)’s ratios look horrible, with a forward P/E at 58 and an EV/EBITDA at nearly 61.0, analysts see an astounding 925% EPS growth next year as Kate Spade and Jack Spade expand. For some time it’s been rumored the company might sell off Juicy Couture, and that would likely propel the stock.

The Foolish takeaway
Fifth & Pacific Companies Inc (NYSE:FNP) is in the middle of its turnaround trajectory and still has work to do. It’s building a better retailer, however, with the help of two Spades — Kate and Jack.

The Men’s Wearhouse, Inc. (NYSE:MW) is in a transitional period and with its founder claiming management worries him, I have to believe him. BeaconLight Capital may believe Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) can go to $70 with the changes it proposes but hoping for those changes isn’t a viable thesis for your money.

Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notoriety of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. 

The article Buy 1, Sell 2 Menswear Stocks originally appeared on Fool.com and is written by AnnaLisa Kraft.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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