10 Stocks to Consider Before Holiday Hype

BOSTON (TheStreet) -- With the holidays right around the corner, investors can get a jump on the hottest consumer stocks now. The following 10 companies sell trendy products. Their stocks receive top rankings from analysts, who are predicting big gains in the next 12 months. They're ordered by projected return.

10. Urban Outfitters (Nasdaq: URBN) is a retailer that owns flagship stores as well as Anthropologie, Free People and Terrain. Since 2007, it has increased revenue 17% annually, on average. Fiscal second-quarter profit soared 46% to $72 million, or 42 cents a share, as revenue grew 20%. The operating margin rose from 17% to 19%. Urban has $591 million of cash and no debt. Its stock trades at a forward earnings multiple of 17, a book value multiple of 4.2 and a cash flow multiple of 17, 11%, 46% and 60% premiums to specialty retail industry averages. But, its PEG ratio, a measure of value relative to predicted growth, of 0.7 signals a 30% discount to estimated fair value.

9. Dress Barn (Nasdaq: DBRN) operates a chain of women's apparel specialty stores. During the past three years, it has expanded sales 19% annually, on average. Fiscal fourth-quarter net income surged 59% to $42 million, but earnings per share climbed a more modest 27% to 52 cents, restrained by a higher share count. The operating margin narrowed from 10% to 9%. Dress Barn has $327 million of cash and just $26 million of debt. Its stock sells for a forward earnings multiple of 10 and a book value multiple of 1.9, 33% and 34% discounts to peer averages. Its PEG ratio of 0.4 reflects a 60% discount to fair value. Raymond James (NYSE: RJF) expects a gain of 45% to $34.

8. Tempur-Pedic (NYSE: TPX) sells premium bedding products worldwide. Its trailing four-quarter sales have grown 23% and its net income has more than doubled. Second-quarter profit surged 99% to $34 million as earnings per share more than doubled to 46 cents, helped by a smaller float. Revenue advanced 42%. The operating margin extended from 16% to 20%. Tempur-Pedic's stock trades at a trailing earnings multiple of 18 and a forward earnings multiple of 13, 74% and 61% discounts to household durables industry averages. Its PEG ratio of 0.2 indicates an 80% discount to fair value. KeyBank (NYSE: KEY) forecasts that the stock will advance 34% to $40.

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