Top Retail Stocks To Own Right Now

Small caps have the ability to produce huge returns for investors. These young companies with innovative ideas and personnel pose a huge threat to industry leaders with the ability to adjust quickly to dynamic markets.

Amazon (Nasdaq: AMZN) is a great example.

Back in the late 1990s, the company blazed a trail in e-commerce by creating a platform for consumers to buy goods online. Traditional brick-and-mortar retailers like Wal-Mart (NYSE: WMT) and Sears Holdings (Nasdaq: SHLD) were slow to respond to the new online paradigm, enabling Amazon to capture the market and catapult to a $120 billion valuation.

These are the kind of innovative companies Andy Obermueller profiles in his Game-Changing Stocks newsletter. Take a look at the big gain below.

Top Retail Stocks To Own Right Now: Caseys General Stores Inc.(CASY)

Casey?s General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey?s General Store, HandiMart, and Just Diesel names in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. Its stores offer foods, beverages, dairy and bakery products, sandwiches, fountain drinks, donuts, cookies, brownies, Danish rolls, ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites. The company?s stores also provide nonfood items, which include tobacco products, health and beauty aids, school supplies, house wares, pet supplies, photo supplies, and automotive products. In addition, it offers gasoline or gasohol for sale on a self-service basis. As of July 31, 2011, the company operated 1,665 stores. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Advisors' Opinion:

• [By Chad Fraser]

  One chain that continues to match up well with the above criteria is Casey’s General Stores (NasdaqGS: CASY). We last highlighted the company’s strong prospects in a December 12 Investing Daily article. Since then, the stock has risen nearly 40%.

• [By Mike Deane]

  After the bell on Monday, Casey’s General Stores (CASY) announced its fiscal Q1 earnings, posting a strong increase in profits and overall revenues compared to the same time period last year.

  The Ankeny, IA-based convenience store company announced quarterly revenues of $2.11 billion, which were up from $1.87 billion in last year’s same quarter. Profits for the company came in at $55.71 million, or $1.43 per share, compared to $39.03 million, or $1.01 per share, in last year’s Q1.

  Both of these figures beat analysts’ estimates, which were EPS of $1.26 on revenues of $2.1 billion.

  CASY shares were up $1.01, or 1.49%, at market close on Monday. YTD, the stock is up more than 26%.

• [By Seth Jayson]

  Casey's General Stores (Nasdaq: CASY  ) reported earnings on June 13. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended April 30 (Q4), Casey's General Stores met expectations on revenues and beat expectations on earnings per share.

• [By Michael Lewis]

  For those who call the American midwest home, the convenience store chain Casey's General Stores (NASDAQ: CASY  ) is likely a part of everyday life. If you're like me, on the other hand, who grew up on one coast and lives on the other, the business could just as easily be something from Blazing Saddles. But, as it turns out, the stores, which span more than 1,700 locations in 11 states, are doing well, and may be poised for further performance as earnings grow and margins expand. Does your portfolio need a quick stop into Casey's General Stores?

Top Retail Stocks To Own Right Now: J.C. Penney Company Inc. Holding Company(JCP)

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating. The company also sells its products through its Internet Web site, jcp.com. J. C. Penney Company, Inc. has strategic alliance with Martha Stewart Living Omnimedia, Inc. As of December 7, 2011, it operated approximately 1,100 department stores. The company was founded in 1902 and is based in Plano, Texas.

Advisors' Opinion:

• [By Steven Russolillo]

  Conversely, there are only 18 stocks in the S&P 500 that are down by at least 10% this year. J.C. Penney(JCP) has been the biggest loser; the stock’s 65% drop has pushed the company’s market capitalization down $2.1 billion, the lowest in the index.

• [By Tim Brugger]

  In an effort to fund ongoing working capital requirements and capital expenditures, particularly inventory and remodeling costs associated with next month's planned opening of its new home departments, J.C. Penney (NYSE: JCP  ) announced today that it will draw $850 million from its existing $1.85 billion revolving credit line.

• [By Jake L'Ecuyer]

  Shares of J. C. Penney Company (NYSE: JCP) got a boost, rising 1.43 percent to $7.82 after the company posted an increase in its same-store sales in September versus August. Analysts at Sterne Agee downgraded the stock from Buy to Neutral.

• [By Andr茅s Cardenal]

  J.C. Penney (NYSE: JCP  ) fell below $5 per share on Tuesday after the company's latest financial update disappointed investors. The stock hasn't been at these levels since 1982, so contrarian investors may feel tempted to consider a long position in the company at discounted prices. However, things could easily continue getting worse before they become any better for J.C. Penney.

Top Industrial Disributor Companies To Own In Right Now: Aeropostale Inc (ARO)

Aeropostale, Inc., (Aeropostale), incorporated on September 1, 1995, is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.S. from Aeropostale stores. P.S. from Aeropostale products can be purchased in P.S. from Aeropostale stores, in certain Aeropostale stores, and online at www.ps4u.com. As of January 28, 2012, it operated 986 Aeropostale stores, consisting of 918 stores in 50 states and Puerto Rico, 68 stores in Canada, as well as 71 P.S. from Aeropostale stores in 20 states. The Company designs, sources, markets and sells all of its own merchandise. In addition, pursuant to a licensing agreement, it operated 14 Aeropostale and P.S. from Aeropostale stores in Middle East and South East Asia. During March 2011, it announced that it had signed a second licensing agreement. The licensee to this agreement is focused to open approximately 30 stores in stores in Turkey over the next five years. In November 2012, the Company acquired online women's fashion footwear and apparel retailer GoJane.com (GoJane).

P.S. from Aeropostale offers casual clothing and accessories focusing on kids between the ages of 4 and 12. It�� P.S. from Aeropostale products are sold only at its stores and online through its e-commerce Websites, www.ps4u.com and www.aeropostale.com. The Company operates three street level stores in the New York City area. It also has a19,000 square foot Aeropostale store in the Times Square section of New York City. It offers both Aeropostale and P.S. from Aeropostale products in the Times Square store.

Advisors' Opinion:

• [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]

  Among the companies with shares expected to trade actively in Friday’s session are Aeropostale Inc.(ARO), Cooper Tire & Rubber Co.(CTB) and General Mills(GIS).

• [By Lauren Pollock]

  Hirzel Capital Management LLC unveiled a major stake in Aeropostale Inc.(ARO), calling the teen-apparel retailer’s shares undervalued. The Dallas-based private investment firm Tuesday reported a 6% stake in Aeropostale and said it plans to have discussions with management, according to a filing with the Securities and Exchange Commission.

• [By Johanna Bennett]

  Another retailer takes a beating on disappointing results and lowered guidance.

  Aeropostale (ARO) fell 3.6% to $9.02 after the closing bell, at one point falling more than 5% to $8.88 as the company forecast�a wider-than-expected fiscal fourth-quarter loss and the latest period’s results fellshort�of the�company’s and Wall Street’s expectations.

  Late Wednesday, the teen retailer said the latest period’s loss was 29 cents a share, excluding one-time items.

  The company in August had predicted a loss between 21 cents and 26 cents a share, while analysts at that time were looking for a profit.

  Sales fell 15% from a year ago to $514.6 million, missing the $520.2 million.

  Same-store sales fell, and gross margins narrowed.�������������������������

  Aeropostale faces challenges in its core basics business.�Its graphic T-shirts and fleece offerings haven’t won over�fashion-conscious teen shoppers. The retailer also has become a target for several activist investors.

  For the current quarter, Aeropostale expects a loss of 24 cents a share to 32 cents a share, while analysts polled by Thomson Reuters recently were looking for a loss of eight cents a share.

Top Retail Stocks To Own Right Now: West Marine Inc (WMAR)

West Marine, Inc., incorporated in September 1993, is a specialty retailer of boating supplies and accessories. The Company offers an assortment of merchandise for the boat and for the boater. It operates in three segments: Stores, Port Supply and Direct-to-Customer. The Company sells to both retail and wholesale customers in its Stores segment. In addition, the Company has three franchised stores in Turkey. The Company�� Port Supply segment is its wholesale segment. The Company�� Direct-to-Customer, which includes e-commerce, catalog and call center transactions. During the year ended December 31, 2011, Stores segment generated approximately 90% of its net revenues. During 2011, products shipped to Port Supply customers directly from its warehouses represented approximately 4% of its net revenues.

During 2011, its Direct Sales segment offered customers around the world more than 75,000 products and accounted for the remaining 6% of its net revenues. Private label products, which the Company sells under the West Marine, Black Tip, Third Reef, Pure Oceans, Lifesling, SeaVolt and Seafit brand names, usually are manufactured in Asia, the United States and Europe.

Stores Segment

During 2011, the Company opened six stores while closing 14 stores. In December 2011, it opened its Fort Lauderdale Boating Superstore, a 50,000 square foot flagship. Its flagship stores ranging in size from 21,000 to 50,000 square feet, offering an array of merchandise typically about 16,000 items, as well as displays designed to help customers make informed product selections. It also operates large format stores, standard-sized stores and smaller Express stores. Its large format stores range from 13,000 to 19,000 square feet and carry about 11,000 items. The standard-sized stores typically range from 6,000 to 12,000 square feet and carry over 6,000 items. Express stores typically range from 2,500 to 3,000 square feet and carry over 4,000 items, mainly hardware and other supplies needed! for day-to-day boat maintenance and repairs.

Port Supply Segment

Port Supply customers include businesses involved in boat sales, boat building, boat commissioning and repair, yacht chartering, marina operations and other boating-related activities. In addition, Port Supply sells to government and industrial customers who use its products for boating and non-boating purposes. Port Supply, the Company�� wholesale segment, serves wholesale customers seeking convenience and a larger assortment of products than those carried by typical distributors.

Direct-to-Customer Segment

The Company�� e-commerce Website provides its customers with access to a selection of approximately 75,000 products, product advisor tips and technical information, over 450 product videos and customer-submitted product reviews. This segment also provides customers with access to knowledgeable technical advisors who can assist its customers in understanding the various uses and applications of the products it sell. It operates a virtual call center from which its associates assist its customers by taking calls from their homes or from its support center in Watsonville, California. Its virtual call center supports sales generated through its e-commerce Website, catalogs and stores and provides customer service offerings.

Advisors' Opinion:

• [By Interactive Buyside]

  West Marine (Nasdaq: WMAR) is an undervalued retailer.  The company is going through a change in focus from a bricks and mortar boat product retailer to a fully integrated retail and wholesale business through bricks and clicks, targeting the boating and water enthusiast customer.   Recent results have been affected by a severe rainy and cool spring which hurt boat usage and delayed the start of the season.  The company has accelerated cash investments to build larger more productive stores and expand its ecommerce abilities, consequently affecting free cash flow short term.  The stock lacks sponsorship as there is only one research report written on the company by a small boutique firm.  The stock trades at only book value despite the company being the leading industry player with a solid balance sheet and significant net cash position. 

Top Retail Stocks To Own Right Now: Coach Inc (COH)

Coach, Inc. (Coach), incorporated in June 2000, is a marketer of fine accessories and gifts for women and men. Coach�� product offerings include women�� and men�� bag, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrance. The Company operates in two segments: Direct-to-Consumer and Indirect. Accessories include women�� and men�� small leather goods, novelty accessories and women�� and men�� belts. Women�� small leather goods, which coordinate with its handbags, include money pieces, wristlets, and cosmetic cases. Men�� small leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key rings and charms are also included in this category. Men�� handbag collections include business cases, computer bags, messenger-style bags and totes. Footwear is distributed through select Coach retail stores, coach.com and about 1,000 United States department stores. Wearables category is comprised of jackets, sweaters, gloves, hats and scarves, including both cold weather and fashion.

The Company�� Jewelry category is comprised of bangle bracelets, necklaces, rings and earrings offered in both sterling silver and non-precious metals. Marchon Eyewear, Inc. (Marchon) is the Coach�� eyewear licensee. Coach sunglasses are sold in Coach retail stores and coach.com, department stores, select sunglass retailers and optical retailers in major markets. The travel collections are comprised of luggage and related accessories, such as travel kits and valet trays. Movado Group, Inc. (Movado) is the Company�� watch licensee, which develops a collection of watches.

Estee Lauder Companies Inc. (Estee Lauder), through its subsidiary, Aramis Inc., is Coach�� fragrance licensee. Fragrance is distributed through Coach retail stores, coach.com and about 4,000 United States department stores and 500 international locations. Coach offers four women�� fragrance col! lections and one men�� fragrance. The women�� fragrance collections include eau de perfume spray, eau de toilette spray, purse spray, body lotion and body splashes.

Direct-to-Consumer Segment

The Direct-to-Consumer segment consists of channels that provide the Company with immediate, controlled access to consumers: Coach-operated stores in North America; Japan; Hong Kong, Macau, and mainland China, Taiwan, Singapore and the Internet. This segment represented approximately 89% of Coach�� total net sales during the fiscal year ended June 30, 2012 (fiscal 2012), with North American stores and the Internet, Coach Japan and Coach China contributing approximately 63%, 18% and 6% of total net sales, respectively. Coach stores are located in regional shopping centers and metropolitan areas throughout the United States and Canada. The retail stores carry an assortment of products. Its stores are located in locations, such as New York, Chicago, San Francisco and Toronto.

Coach�� factory stores serve as a means to sell manufactured-for-factory-store product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach Factory name. Coach�� factory store design, visual presentations and customer service levels support. Coach views its Website as a key communications vehicle for the brand to promote traffic in Coach retail stores and department store locations. Its online store provides a showcase environment where consumers can browse through a selected offering of the latest styles and colors.

Coach Japan operates department store shop-in-shop locations and freestanding flagship, retail and factory stores, as well as an e-commerce Website. Flagship stores offer an assortment of Coach products that are located in select shopping districts throughout Japan. Coach China operates department store shop-in-shop locations, as well as freestanding flagship, retail and factory sto! res. Flag! ship stores, which offer an assortment of Coach products, are located in select shopping districts throughout Hong Kong and mainland China. Coach Singapore and Taiwan operate department store shop-in-shop locations as well as freestanding flagship, retail and factory stores. Flagship stores, which offer a range of assortment of Coach products, are located in select shopping districts in Singapore and Taiwan.

The Reed Krakoff brand represents New American luxury primarily for handbags, accessories and ready-to-wear. Reed Krakoff operates department store shop-in-shop locations, freestanding flagship stores, as well as an e-commerce Website at reedkrakoff.com. Flagship stores, which offer an assortment of Reed Krakoff products, are located in select shopping districts in the United States and Japan.

Indirect Segment

The Indirect segment represented approximately 11% of total net sales in fiscal 2012, with United States Wholesale and Coach International representing approximately 6% and 4% of total net sales, respectively. The Indirect segment also includes royalties earned on licensed product. U.S. Wholesale channel offers access to Coach products to consumers who prefer shopping at department stores. Coach products are also available on macys.com, dillards.com, bloomingdales.com, lordandtaylor.com, belk.com, vonmaur.com and nordstrom.com. Coach�� products are sold in approximately 990 wholesale locations in the United States and Canada. Its U.S. wholesale customers are Macy�� (including Bloomingdale��), Dillard��, Nordstrom, Lord & Taylor, Carson�� and Saks Fifth Avenue.

Coach International channel represents sales to international wholesale distributors and authorized retailers. Coach has developed relationships with a select group of distributors who sell Coach products through department stores and freestanding retail locations in over 20 countries. Coach�� network of international distributors serves various markets: South Korea, US & T! erritorie! s, Taiwan, Malaysia, Hong Kong, Mexico, Saudi Arabia, Thailand, Japan, Australia, Singapore, UAE, France, China, Macau, Indonesia, Kuwait, Bahamas, Aruba, Vietnam, New Zealand, Bahrain, India and Brazil.

Advisors' Opinion:

• [By Hibah Yousuf]

  Michael Kors has been a standout in its category of affordable luxury, particularly in comparison to rival Coach (COH).

  Last month, Coach reported a profit that declined from a year earlier and sales that slipped and also fell short of analyst expectations. Shares of Coach are down 7% so far this year.

• [By Andrew Marder]

  Kate Spade has been the clear winner, competing well with both Coach (NYSE: COH  ) and Michael Kors (NYSE: KORS  ) . While Kors saw a much larger jump in comparable sales -- 41% last quarter -- Kate's increase is nothing to be overlooked. It far outpaced the 2% drop Coach's North American stores experienced last quarter.

• [By Demitrios Kalogeropoulos]

  There's nothing luxurious about the latest performance of Coach's (NYSE: COH  ) stock.

  Shares are badly trailing the S&P 500, and have completely missed the market rally this year.

Top Retail Stocks To Own Right Now: Zumiez Inc (ZUMZ)

Zumiez Inc. (Zumiez) is a specialty retailer of action sports related apparel, footwear, equipment and accessories operating under the Zumiez brand name. As of January 28, 2012, the Company operated 434 stores in the United States and 10 stores in Canada. In addition, the Company operates a Website that sells merchandise online. At January 28, 2012, its stores averaged approximately 2,900 square feet. Its apparel offerings include tops, bottoms, outerwear and accessories, such as caps, bags and backpacks, belts, jewelry and sunglasses. Zumiez�� footwear offerings primarily consist of action sports related athletic shoes and sandals. Its equipment offerings, or hardgoods, include skateboards, snowboards and ancillary gear, such as boots and bindings. The Company also offers a selection of other items, such as miscellaneous novelties.

The Company supplements its merchandise assortment with a select offering of private label products across many of its apparel product categories. During the fiscal year ended January 28, 2012 (fiscal 2011), its private label merchandise represented 17.7% of the Company�� net sales. The Company sources its private label merchandise from foreign manufacturers worldwide.

The Company competes with Abercrombie & Fitch, Aeropostale, American Apparel, American Eagle Outfitters, Billabong, CCS, Forever 21, Hollister, Hot Topic, Old Navy, Pacific Sunwear of California, The Buckle, Wet Seal, Tilly��, Urban Outfitters, Big 5 Sporting Goods, Dick�� Sporting Goods, Sport Chalet and The Sports Authority.

Advisors' Opinion:

• [By Anna Prior]

  Zumiez Inc.'s(ZUMZ) same-store sales rose 2% in February, topping analysts’ expectations, though discounting weighed on margins. Shares edged up 2.3% to $24.37 premarket.

Top Retail Stocks To Own Right Now: Target Corporation(TGT)

Target Corporation operates general merchandise stores in the United States. The company offers household essentials, including pharmacy, beauty, personal care, baby care, cleaning, and paper products; hardlines comprising music, movies, books, computer software, sporting goods, and toys, as well as electronics that comprise video game hardware and software; apparel and accessories consisting of apparel for women, men, boys, girls, toddlers, infants, and newborns; and intimate apparel, jewelry, accessories, and shoes. It also provides food and pet supplies, including dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and pet supplies; and home furnishings and d�or, such as furniture, lighting, kitchenware, small appliances, home d�or, bed and bath, home improvement, and automotive products, as well as seasonal merchandise, which include patio furniture and holiday d�or. The company sells its merchandise products under private-labe l and exclusive licensed brands. In addition, it provides in-store amenities. As of January 28, 2012, Target Corporation operated 1,763 stores in 49 states and the District of Columbia under Target and SuperTarget names. Further, it offers general merchandise through its Website, Target.com. The company distributes its merchandise through a network of distribution centers, as well as third parties and direct shipping from vendors. Additionally, it offers credit to guests through its branded proprietary credit cards, the Target Visa Credit Card and the Target Credit Card, as well as through its branded proprietary Target Debit Card. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:

• [By Hank Coleman]

  Getty Images I don't mean to throw away coupons. It just happens. I stick them in my pocket, wait in line, go to the register and forget to use them. I also don't return to the store and ask for my missed discount. You might think that it's not such a big deal. What's a dollar here or there? But, like most small things, these missing savings can add up over time. Have you ever looked at the savings printed on the bottom of your grocery receipt? What if you forget your loyalty card and coupons more often than not? We're talking about some serious money if this keeps happening for a year. Most stores offer to give you the difference if you bring your receipt in with your loyalty card or coupons at a later date. But I'm too lazy to go back to the store and get the credits I deserve. I think to myself that I'll go home, get the coupon, and come back. Or I tell myself that I'll bring it and my receipt back with me next time I visit this store. But I'm just fooling myself. I'm just telling my subconscious that to make me feel better about wasting the money. I Forget to Ask for Discounts I Qualify For I constantly leave my loyalty cards at home. I join one or two new ones a month depending on which retailers I'm shopping at for deals, and cards fill up my wallet. Keychain cards can also get cumbersome. So, what are you supposed to do? How can I stop forgetting my loyalty cards? One way is to clean out your wallet. Do you have loyalty cards for stores that you'll never visit again? I've lived in a lot of states over the past few years. In a recent sterilization of my wallet, I found loyalty cards for grocery stores that don't even have locations in the state where I live now. I forget to ask for a military discount almost everywhere I go. Many wonderful businesses give discounts to active duty service members -- plus veterans, teachers, senior citizens, emergency responders and others. These discounts won't do any good if you don't remember to ask for them. A F

Top Retail Stocks To Own Right Now: Natural Grocers By Vitamin Cottage Inc (NGVC)

Natural Grocers by Vitamin Cottage, Inc., incorporated on April 9, 2012, is a specialty retailer of natural and organic groceries and dietary supplements. The Company operates within the natural products retail industry. The Company offers products and brands, including a selection of natural and organic food, dietary supplements, body care products, pet care products and books.

The Company offers its customers an average of approximately 18,000 store-keeping units (SKUs) of natural and organic products per store, including an average of approximately 7,000 SKU of dietary supplements. As of June 30, 2012, the Company operated 55 stores in 11 states, including Colorado, Idaho, Kansas, Missouri, Montana, Nebraska, New Mexico, Oklahoma, Texas, Utah and Wyoming, as well as a bulk food repackaging facility and distribution center in Colorado. The size of its stores varies from 5,000 selling square feet to 14,500 selling square feet, and a new store averages 9,500 selling square feet.

Advisors' Opinion:

• [By David Mamos]

  The Fresh Market Inc. (Nasdaq: TFM), Natural Grocers by Vitamin Cottage Inc. (NYSE: NGVC), and privately held Trader Joe's are others crowding into the field.

• [By John Udovich]

  Small cap Natural Grocers by Vitamin Cottage (NYSE: NGVC) and mid cap Sprouts Farmers Market Inc (NASDAQ: SFM) are taking aim at natural and organic foods supermarket giant Whole Foods Market (NASDAQ: WFM), but do either of these stocks have what it takes to take on the the king of organic retailing? Whole Foods Market was founded in Austin way back in 1978 by a�twenty-five year old college dropout and a twenty-one year old�at a time when there were only a handful of natural or organic�supermarkets in the country. Today, Whole Foods Market�has 364 stores in the United States, Canada and the United Kingdom���which are sometimes referred to as ��hole Wallet��r ��hole Paycheck��given how much it costs to shop there.

Top Retail Stocks To Own Right Now: Penske Automotive Group Inc.(PAG)

Penske Automotive Group, Inc. operates as an automotive retailer. It sells new and used vehicles of approximately 40 vehicle brands; offers vehicle maintenance and repair services; and engages in the sale and placement of third-party finance and insurance products, third-party extended service contracts, and replacement and aftermarket automotive products. As of December 31, 2011, the company operated 320 retail automotive franchises, of which 166 franchises were located in the United States and 154 franchises are located outside of the United States primarily in the United Kingdom. It also has operations in Puerto Rico and Germany. Penske Automotive Group, Inc. was founded in 1990 and is headquartered in Bloomfield Hills, Michigan.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Penske Automotive Group (NYSE: PAG  ) , whose recent revenue and earnings are plotted below.

• [By Marc Bastow]

  Automotive retailer Penske Automotive (PAG) raised its quarterly dividend 5.9% to 18 cents per share, payable on Mar. 3 to shareholders of record as of Feb. 10.
  PAG Dividend Yield: 1.69%

Top Retail Stocks To Own Right Now: Sears Hometown and Outlet Stores Inc (SHOS)

Sears Hometown and Outlet Stores, Inc. (SHO), incorporated on April 23, 2012, is a retailer primarily focused on selling home appliances, hardware, tools and lawn and garden equipment. As of April 28, 2012, the Company and its dealers and franchisees operated 1,238 stores across all 50 states and Puerto Rico, Guam and Bermuda. The Company also provides its customers with a range of services, including home delivery and installation and product protection agreements. SHO operates in two segments: the Sears Hometown and Hardware segment and the Sears Outlet segment.

Sears Hometown

Sears Hometown and Hardware segment�� stores are designed to provide its customers with in-store and online access to a range selection of brands of home appliances, tools, lawn and garden equipment, sporting goods, consumer electronics and household goods, depending on the particular store. Its Sears Outlet stores are designed to provide its customers with in-store and online access to purchase new, one-of-a-kind, out-of-carton, discontinued, obsolete, used, reconditioned, overstocked and scratched and dented products, collectively, outlet-value products, including home appliances, lawn and garden equipment, apparel, mattresses, televisions, sporting goods and tools.

As of April 28, 2012, the Sears Hometown and Hardware segment consisted of 944 Sears Hometown Stores, 96 Sears Hardware Stores and 76 Sears Home Appliance Showrooms. The 944 Sears Hometown Stores are primarily independently owned stores, predominantly located in smaller communities and offering appliances, consumer electronics, lawn and garden equipment, and hardware. Hometown Stores carry y Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other brands. 96 Sears Hardware Stores are hardware stores that carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and other national brands and other home improvement products. 93 of these locations also offer a selection of Kenm! ore and other national brands of home appliances.

Sears Hometown and Hardware business operates through three formats: Sears Hometown Stores (Hometown Stores), Sears Hardware Stores (Hardware Stores), and Sears Home Appliance Showrooms (Home Appliance Showrooms). Hometown Stores offer products and services across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, sporting goods, tools and household goods. Most of its Hometown Stores carry Sears brand products, such as Kenmore, Craftsman, and DieHard, as well as other national brands. Its Hardware Stores offer products and services across a range of merchandise categories and sales are primarily driven by tools, lawn and garden equipment, home appliances, and other home improvement products. In addition, these stores offer blade sharpening, key cutting and screen repair, as well as products typically found in local hardware stores, such as fasteners, electrical supplies and plumbing supplies. These stores carry Craftsman brand tools and lawn and garden equipment, DieHard brand batteries and a range of national brands and other home improvement products. Its Home Appliance Showrooms offer home appliances and related services in stores primarily located in strip malls and lifestyle centers of metropolitan areas. Home Appliance Showroom sales are primarily driven by big-ticket cooking, laundry and refrigeration home appliances, as well as, in certain stores, mattresses. These stores carry Kenmore and other national brands of home appliances. As of April 28, 2012, out of 76 Home Appliance Showrooms in 19 states, 44 of these stores are owned and operated by franchisees, 30 stores are owned and operated by the Company and two are owned and operated by independent dealers.

Sears Outlet

As of April 28, 2012, the Sears Outlet segment consisted of 122 Sears Outlet Stores. The Company�� Sears Outlet stores provide in-store and online access to purchase outlet-value ! products ! across a range of merchandise categories, including home appliances, consumer electronics, lawn and garden equipment, apparel, sporting goods, tools, and household goods.

The Company competes with Sears Holdings, The Home Depot, Best Buy, Lowe�� and Tractor Supply, Ace Hardware, True Value, HH Gregg and US Appliances.

Advisors' Opinion:

• [By James Brumley]

  Two years later, the company spun off its Hometown and Outlet stores by issuing shares of Sears Hometown and Outlet Stores (SHOS) to SHLD stock owners … charging them for the right to receive what they technically already owned.

• [By Sally Jones]

  After fighting the slippery slopes of re-imagineering Sears and its spin-offs, including the troubled Orchard Supply Hardware (OSH, OSHWQ, OSHSQ), Lampert drastically cut his companies in the second quarter of 2013 but still holds 31.82% of Sears Holdings Corporation (SHLD) and 25.05% of Sears Hometown & Outlet Stores Inc. (SHOS), 2.23% of Gap Inc. (GPS) and 16.75% of AutoNation (AN).

• [By James Brumley]

  The folks who originally said Eddie Lampert — hedge fund manager, major SHLD shareholder, and now acting Sears CEO — was mostly viewing Sears Holdings as a real estate play have since been vindicated. In addition to the spinoff of Orchard Supply Hardware (OSHWQ) in 2011 and last year’s spinoff of the relatively successful Sears Hometown and Outlet Stores (SHOS), Lampert is now finally getting serious about shedding SHLD department store units. Last year he sold or closed 46 of the company’s 1,300 or so full-line mall stores, vs. letting go of less than 10 in any year since he became a major shareholder back in 2006.