|I'm not into retail stocks, but if I was to buy one, it would be ROST. Compare the metrics to CWTR.|
For a slightly higher valuation, you're are getting a company with rising earnings, increased Nov. sales comps, an expanding national footprint, and a dividend. Ross's ROE dwarfs CWTRs. Check out the short interest in both stocks. Where is the value in a stock where 24% of the float is short? Just like Pier One, I believe CWTR is a value trap. In my opinion, ROST is the safer pick.
Using the Peter Lynch "shopping" test, recently, my wife went to Macy's to buy a household item. She couldn't find anybody in the department to help her, so she left and stopped off at Ross. She found the identical item at a much cheaper price.