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Interested in the recovery of the retail sector? We ran a screen to dig deeper into the industry's stocks.

We began by screening the retail industry for highly liquid stocks, with current ratios above 3. The current ratio is current assets/current liabilities, so ratios above 3 indicate the company has at least 3 times the liquid assets to cover their short-term liabilities.

We then screened for strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall. More investing ideas on Kapitall Wire.

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

List sorted by increase in revenue over the last year.

1. Under Armour, Inc. (UA): Designs, develops, markets, and distributes a range of apparel and accessories using synthetic microfiber fabrications in the US. Market cap at $5.92B, most recent closing price at $56.63. Current ratio at 3.09. Revenue grew by 26.82% during the most recent quarter ($369.47M vs. $291.34M y/y). Inventory grew by 22.45% during the same time period ($380.89M vs. $311.07M y/y). Inventory, as a percentage of current assets, decreased from 50.07% to 49.% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

2. Carter's, Inc. (CRI): Designs, sources, and markets branded children's wear. Market cap at $3.07B, most recent closing price at $51.99. Current ratio at 5.09. Revenue grew by 19.69% during the most recent quarter ($472.16M vs. $394.49M y/y). Inventory grew by -17.52% during the same time period ($377.86M vs. $458.11M y/y). Inventory, as a percentage of current assets, decreased from 64.53% to 47.95% during the most recent quarter (comparing 13 weeks ending 2012-06-30 to 13 weeks ending 2011-07-02).

3. Movado Group, Inc. (MOV): Designs, sources, markets, and distributes fine watches and jewelry. Market cap at $648.11M, most recent closing price at $25.75. Current ratio at 5.76. Revenue grew by 15.37% during the most recent quarter ($103.66M vs. $89.85M y/y). Inventory grew by -7.45% during the same time period ($172.04M vs. $185.88M y/y). Inventory, as a percentage of current assets, decreased from 47.54% to 40.87% during the most recent quarter (comparing 3 months ending 2012-04-30 to 3 months ending 2011-04-30).

4. Crocs, Inc. (CROX): Engages in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. Market cap at $1.53B, most recent closing price at $16.87. Current ratio at 3.66. Revenue grew by 11.96% during the most recent quarter ($330.94M vs. $295.58M y/y). Inventory grew by 6.1% during the same time period ($166.01M vs. $156.46M y/y). Inventory, as a percentage of current assets, decreased from 30.44% to 25.95% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 4 Highly Liquid Retail Stocks With Encouraging Inventory Trends