Three retail stocks to watch as high-end and specialty plays bounce on recovery hopes

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With brick-and-mortar retailers bouncing as investors bet on an economic recovery, two traders assess whether it's worth buying into the move.

But "playing the apparel wars game is tricky," Strategic Wealth Partners CEO Mark Tepper told CNBC's"It's really tough to figure out whether people want to dress back up again," he said. "It looks more like a brick-and-mortar revival trade to me. Will a vaccine cause a mad rush of people to go to the mall? I don't think so. I mean, foot traffic was dying before Covid. I find it next to impossible to believe that this causes it to slingshot back.

Instead, Tepper suggested investors focus on growing brands with robust online platforms and strong direct-to-consumer pipelines.," a "relative value play" that trades at a roughly 20% discount to industry peers, Tepper said. The parent company of "outdoorsy" brands North Face and Timberland, VF Corp. is both a good play on the winter season and on its recent"This company absolutely blows my mind," he said of Supreme. "They literally take a North Face coat that's a few hundred bucks, they slap their logo on it and they turn around and they sell it for 900 bucks. I mean, that is pricing power.

Todd Gordon, founder of TradingAnalysis.com, said in the same interview that while he cut all of his Lululemon exposure on Tuesday given the stock's valuation, another stock looked increasingly attractive.," Gordon said. "They have this new shop-in-shop concept. They're going to be featured in select locations within the existing beauty section of Target, plus they're going to be featured online.

 

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