Forget the tired old pajamas or the wool socks. Consumer stock analysts at Alex. Brown Inc. think they've found the perfect holiday gift for that special someone.
Their choice? Retail stocks that they think have plenty of upside potential.
Their favorites include:
Borders Group Inc., the Michigan-based leader in book and music superstores. Shares closed yesterday at $36.875, down 12.5 cents.
PETsMART Inc., the Phoenix-based operator of more than 300 stores that sell pet food and pet supplies. Shares closed at $24.25, down 37.5 cents.
Gadzooks Inc., a Dallas-based retailer that targets teen-agers. Shares closed at $28.625 a share, up 37.5 cents a share.
Anita Gallitano, an Alex. Brown retail research analyst, likes Gadzooks because it targets teen-agers through high-fashion clothing and accessories. The market is exploding because the number of teen-agers is growing and minimum wage is rising.
Teen-agers "don't really save money," she said. "They [Gadzooks] have got a lot of growth opportunity."
Gadzooks looks like a good buy at its current price. Gallitano expects shares to reach $39 over the next year.
Pub Date: 12/06/96