Pier 1 and Ross Stores to Open Near 52-Week Highs

While the markets were down overall yesterday, retailers Pier 1 Imports (NYSE: PIR) and Ross Stores (NASDAQ: ROST) reached new multiyear highs of $12.99 and $89.25 per share, respectively. Pier 1's share price jumped after the company said in October that it would repurchase up to $100 million in shares. Pier 1 was also a Jim Cramer pick following its solid second-quarter results. The Fort Worth, Tex.-based retailer offers decorative home furnishings and gifts. It has more than 1,000 stores in the U.S., Canada and Mexico. Founded in 1970, Pier 1 now has a market cap of $1.4 billion. The price-to-earnings ratio is lower than the industry average, and the operating margin is higher than the industry average. The long-term EPS growth forecast is 12.5% and the return on equity is 30.3%. Six of 8 analysts consider it a Buy or Strong Buy; none rate it a Sell. The share price is more than 27% higher than a month ago. The stock has outperformed competitors Cost Plus (NASDAQ: CPWM) and Williams-Sonoma (NYSE: WSM) over the past six months. Ross Stores announced that it would expand with 15 new stores in Arkansas and Illinois. Jim Cramer recently has called this stock a Buy as well, and there have been takeover rumors about the company. The Pleasanton, Calif.-based company operates more than 1,000 off-price retail apparel and home accessories stores in the United States. Its market cap is $10.1 billion. It was founded in 1957. Earnings per share are anticipated to grow 11.3% over the next five years and the return on equity is 45.1%. Its operating margin is higher than the industry average and it has a dividend yield of 1.0%. The PEG ratio is 1.2. The share price is up more than 11% in the past month, as well as about 49% higher than a year ago. The stock has outperformed competitors TJX Companies (NYSE: TJX) and Walmart (NYSE: WMT) over the past six months. Action Items: Bullish: Traders interested in retail exchange traded funds might want to consider the following trades:

• SPDR S&P Retail (NYSE: XRT) is up more than 9% year to date.
• Consumer Discretionary Select Sector SPDR (NYSE: XLY) is up more than 5% year to date.
• Vanguard Consumer Discretionary ETF (NYSE: VCR) is up more than 4% year to date.

Bearish: Or traders might want to consider this alternative position:

• ProShares UltraShort Consumer Services (NYSE: SCC), though it is currently trading just above the 52-week low.

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.