PVH Corp (PVH), Under Armour Inc (UA), Urban Outfitters, Inc. (URBN): Three Apparel and Footwear Ideas for Investors

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Urban is adequately addressing execution and competitive challenges and sustaining high single-digit square-footage growth, so EPS growth should continue going forward at rates that should be around 10% year over year.

Trading at 25.5 times 2013 earnings, I think Urban is a company to keep on the watch list. Room for improvement is there and management seems to be addressing it.

Bottom line

The three companies named above look extremely compelling for any watch list. While PVH Corp (NYSE:PVH) looks reasonably valued, I would wait  to buy Under Armour Inc (NYSE:UA). On the other hand, Urban Outfitters, Inc. (NASDAQ:URBN) is almost a turnaround case since successful operating adjustments could boost value relatively easy.

Federico Zaldua has no position in any stocks mentioned. The Motley Fool recommends Under Armour. The Motley Fool owns shares of Under Armour.

The article Three Apparel and Footwear Ideas for Investors originally appeared on Fool.com.

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