Near-Term Weakness A Buying Opportunity For Retail Group, Jefferies & Company Reports

Jefferies & Company said that it believes investors should stay long in the specialty retail group and use any near-term weakness as a buying opportunity.

“We seem accelerating comps, reasonable valuations, muted 2H'10 expectations, and negative sentiment as reasons to own the group in size,” Jefferies & Company writes. “Best picks are American Eagle Outfitters, Inc. (NYSE: AEO), Abercrombie & Fitch (NYSE: ANF), Fossil, Inc. (NASDAQ: FOSL), and Guess?, Inc. (NYSE: GES).”

American Eagle Outfitters, Inc. closed Friday at $15.41; Abercrombie & Fitch closed at $45.92; Fossil, Inc. closed at $67.74; and Guess?, Inc. closed at $40.90.