Limited Brands, Inc. (LTD) Is Looking Good!

As far as specialty apparel retailers go, Gap is a better direct comparison.  Gap (which also reports next week) trades at 14.4 times earnings, and has a projected forward growth rate of 12.4%.  So, a quick calculation gives a valuation-to-growth ratio of 58.1%, exactly that of Limited Brands (interesting)!

So, which is the right play for you?  If you either have a very low appetite for risk, or think we are headed into another recession, buy Wal-Mart.  If you believe (as I do) that we have several prosperous years ahead, which particular specialty retailer you pick is up to you.  Limited seems to be very similarly valued to peers, so the right investment for you depends on your personal thoughts about which company has the most innovative products, and which will do the best job of attracting and retaining customers going forward.

The article This Specialty Apparel Company Is Looking Good! originally appeared on Fool.com and is written by Matthew Frankel.

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