American Eagle Outfitters (AEO), Abercrombie & Fitch Co. (ANF): The Roller Coaster Ride of Apparel Retail

With the recent pullback in American Eagle’s stock, it’s now trading with a P/E that’s at a 15% discount to Abercrombie.

American Eagle Outfitters (NYSE:AEO)’s PEG ratio is also now at an ultra low 0.3. However, Abercrombie & Fitch Co. (NYSE:ANF)’s is even lower, at only 0.1. And Urban Outfitters, Inc. (NASDAQ:URBN)’s is still well below one at 0.5. All three of these companies look to be solid investments in the apparel sector. There’s no promises that there won’t be more volatility to come for the industry, but it does appear that the apparel retailers are offering investors an opportune time to jump into the industry.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Urban Outfitters. Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Roller Coaster Ride of Apparel Retail originally appeared on Fool.com and is written by Marshall Hargrave.

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