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Growth is good because it increase earnings meaningfully and lets the current P/E ratio go down. This is the reason investors pay 20, 50 or even 100 times earnings for an investment. But you really make money if you buy a stock that beats analyst expectations and generates additional growth fantasies. Let’s take a look into the apparel store industry. The industry offers a current dividend yield of 1.8 percent. The average price to earnings ratio amounts to 16.2.

I analyzed the apparel stores industry by growth stocks. My first condition is that the 5-year sales and earnings per share growth should be above 10 percent. Further, the company should have additional growth potential, measured by a positive expected 5-year EPS growth. Finally, the growth should create value. This fact is covered by the ratio return on investment (NYSE:ROI). The ratio shows how efficiently a company converts its debt and equity into profits. I decided to screen only stocks with a positive ROI. Here the results:

1. Jos. A Bank Clothiers (NASDAQ:JOSB) has a market capitalization of $1.4 billion, generates revenues in an amount of $915.5 million and a net income of $91.9 million. Its following P/E ratio is 15.4 and forward price to earnings 12.9, Price/Sales 1.5 and Price/Book ratio 2.7. Dividend Yield: 0 percent. The company grew 13.1 percent in sales and 18.8 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 15.0 percent. The ROI is 17.4 percent.

2. Buckle (NYSE:BKE) has a market capitalization of $2.0 billion, generates revenues in an amount of $998.9 million and a net income of $140.9 million. Its following P/E ratio is 13.9 and forward price to earnings 12.7, Price/Sales 2.0 and Price/Book ratio 5.1. Dividend Yield: 1.9 percent. The company grew 13.6 percent in sales and 20.5 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 10.6 percent. The ROI is 32.1 percent.

3. Aeropostale (NYSE:ARO) has a market capitalization of $1.1 billion, generates revenues in an amount of $2.4 billion and a net income of $161.7 million. Its following P/E ratio is 7.2 and forward price to earnings 13.2, Price/Sales 0.4 and Price/Book ratio 3.0. Dividend Yield: 0 percent. The company grew 14.8 percent in sales and 30.2 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 12.3 percent. The ROI is 29.4 percent.

4. Urban Outfitters (NASDAQ:URBN) has a market capitalization of $3.7 billion, generates revenues in an amount of $2.4 billion and a net income of $243.7 million. Its following P/E ratio is 16.2 and forward price to earnings 13.5, Price/Sales 1.5 and Price/Book ratio 2.9. Dividend Yield: 0 percent. The company grew 15.8 percent in sales and 19.6 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 19.6 percent. The ROI is 16.2 percent.

5. Ascena Retail Group (NASDAQ:ASNA) has a market capitalization of $2.3 billion, generates revenues in an amount of $2.9 billion and a net income of $170.5 million. Its following P/E ratio is 13.8 and forward price to earnings 9.9, Price/Sales 0.8 and Price/Book ratio 1.9. Dividend Yield: 0 percent. The company grew 17.5 percent in sales and 12.9 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 13.9 percent. The ROI is 12.4 percent.

6. Zumiez (NASDAQ:ZUMZ) has a market capitalization of $673.8 million, generates revenues in an amount of $510.1 million and a net income of $31.8 million. Its following P/E ratio is 21.0 and forward price to earnings 17.2, Price/Sales 1.3 and Price/Book ratio 2.9. Dividend Yield: 0 percent. The company grew 18.4 percent in sales and 10.9 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 21.3 percent. The ROI is 12.9 percent.

7. Guess? (NYSE:GES) has a market capitalization of $3.0 billion, generates revenues in an amount of $2.6 billion and a net income of $273.4 million. Its following P/E ratio is 10.8 and forward price to earnings 8.5, Price/Sales 1.1 and Price/Book ratio 2.5. Dividend Yield: 2.5 percent. The company grew 21.6 percent in sales and 36.7 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 13.9 percent. The ROI is 21.8 percent.

8. rue21 (NASDAQ:RUE) has a market capitalization of $627.4 million, generates revenues in an amount of $699.7 million and a net income of $35.3 million. Its following P/E ratio is 18.2 and forward price to earnings 14.6, Price/Sales 0.9 and Price/Book ratio 5.1. Dividend Yield: 0 percent. The company grew 26.9 percent in sales and 29.5 percent in EPS over the past five years. For the upcoming five years, the EPS growth is expected to grow 20.5 percent. The ROI is 24.5 percent.

Source: 8 Fast-Growing Apparel Stores