Five Below Inc (FIVE), The Wet Seal, Inc. (WTSL), The Buckle, Inc. (BKE): Three Hidden Gems in Teen Retail

Although these numbers are not particularly impressive compared to the rest of the retail apparel industry, its growth over the past five years is quite impressive when compared to similarly diversified retailers, such as American Eagle Outfitters.

Therefore, The Buckle, Inc. (NYSE:BKE) has an advantage over many of its industry peers – slow and steady growth in a highly macro-dependent sector.

The Foolish Bottom Line

Five Below Inc (NASDAQ:FIVE), The Wet Seal, Inc. (NASDAQ:WTSL) and Buckle offer three different approaches to the teen and young adult market, and each business has its own merits. In closing, let’s compare the fundamentals of these three companies to gauge which is the better investment at current prices.

Source: Yahoo Finance, 7/12/2013

For investors who like exciting, speculative growth stocks, Five Below Inc (NASDAQ:FIVE) looks like a solid bet. Meanwhile, The Wet Seal, Inc. (NASDAQ:WTSL) should appeal to investors who like a good turnaround story. Last but not least, The Buckle, Inc. (NYSE:BKE) is a rarity in the apparel sector – a slow but stable stock which has double digit margins and a decent dividend. Therefore, I believe that these three companies are hidden gems in the retail sector which shouldn’t be overlooked.

The article Three Hidden Gems in Teen Retail originally appeared on Fool.com and is written by Leo Sun.

Leo Sun has no position in any stocks mentioned. The Motley Fool recommends The Buckle. The Motley Fool owns shares of The Buckle. Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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