Today, analysts Andrew Tonner and Austin Smith discuss one retail sector that investors need to stay away from: teen retail. Abercrombie and Fitch projected soft earnings, as did Aeropostale, and many of their peers have had a rough ride recently, too. Even after big drops, many of these companies still trade for premium multiples. At the end of the day, investors need to ask themselves whether this is really the pond they want to be fishing in, and Andrew and Austin say no.
Any everyday retail Joe and Jane could have probably told you that; people just aren't shopping at these stores right now. But there are still profits to be made, and the average consumer knows where to find them. Our new free report, "Middle-Class Millionaire-Makers," highlights three less-than-luxurious stocks the 1% may be overlooking. Just click here to read it now.
The article 1 Sector to Run Away From originally appeared on Fool.com.
Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Aeropostale and The Buckle. Motley Fool newsletter services recommend The Buckle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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