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Interested in the retail industry? For ideas on where to start your search, we ran a screen you may find interesting.

We compiled a universe of retail stocks and screened the list for those that appear undervalued relative to earnings growth, with PEG ratios below 1. We then screened these stocks for those with impressive profitability, beating their industry peers on gross, operating, and pretax margins.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

HERE

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are poised for success? Use this list as a starting point for your own analysis.

1. Sotheby's (BID): An auctioneer of various properties including fine art, antiques, decorative art, jewelry, and collectibles. PEG at 3.91. TTM gross margin at 57.22% vs. industry average at 52.25%. TTM operating margin at 36.25% vs. industry average at 20.92%. TTM pretax margin at 30.47% vs. industry average at 17.95%.

2. Chico's FAS Inc. (CHS): Operates as a specialty retailer of casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. PEG at 4.91. TTM gross margin at 60.8% vs. industry average at 37.33%. TTM operating margin at 10.55% vs. industry average at 9.75%. TTM pretax margin at 10.28% vs. industry average at 9.05%.

3. Express Inc. (EXPR): Operates specialty retail stores in the United States. PEG at 6.91. TTM gross margin at 39.37% vs. industry average at 37.33%. TTM operating margin at 12.53% vs. industry average at 9.75%. TTM pretax margin at 10.75% vs. industry average at 9.05%.

4. Guess? Inc. (GES): Engages in the design, marketing, distribution, and licensing of apparel and accessories for men, women, and children. PEG at 8.91. TTM gross margin at 43.96% vs. industry average at 37.33%. TTM operating margin at 11.97% vs. industry average at 9.75%. TTM pretax margin at 16.02% vs. industry average at 9.05%.

5. Jos. A Bank Clothiers Inc. (JOSB): Design, retails, and direct-markets men's tailored and casual clothing and accessories. PEG at 13.91. TTM gross margin at 65.25% vs. industry average at 37.33%. TTM operating margin at 16.34% vs. industry average at 9.75%. TTM pretax margin at 16.35% vs. industry average at 9.05%.

*Profitability data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: 5 Undervalued Retail Stocks With High Profitability