Options: Retail Stocks: Jud Pyle, portfolio manager of Options Alerts, reveals how to trade retail stocks after the sector's recent run-up. Click here to watch the video.

When asked about retailer Aeropostale (ARO), Cramer said he was wrong to lump this company with the likes of American Eagle Outfitters (AEO) and Abercrombie & Fitch (ANF) in a recent sell recommendation. He said that Aeropostale is a much better company and is worthy of owning. ("Mad Money Recap," 4-22-09)

Positive - Price 13.08 on April 6
by Susquehanna Financial Group

AEO [is being] proactive in [its] efforts to drive shopper conversion and traffic...such as buy-one, get-one-50%-off shorts and scarves and tops -- precisely what shoppers are gravitating toward...AEO has broadly increased hard markdowns, reflective of the challenging environment and higher inventory levels....Management estimated that the later Easter holiday will have a negative March-comp [comparative-store sales] drag of roughly 500 basis points. AEO guided 1Q09 earnings per share to [a range of] 4 cents to 7 cents. Our forecast is 5 cents (versus 21 cents), a year-over-year decline of 76%. Market cap: $2.5 billion.

Najarian's first choice: American Eagle Outfitters (AEO). The company has won over consumers with its buy-one-and-get-the-second-for-50% pitch.

3 Stocks I Saw on TV: Dan Fitzpatrick examines three stocks viewed on Fast Money. Today's stocks include Dominion Resources, American Eagle and China 25 Index Fund. Click here to watch the video.

Last on the list was American Eagle Outfitters (AEO). Cramer said this retailer has a clean balance sheet and has increased promotions to drive shoppers back to its stores. The earnings estimates have come down so fast, said Cramer, that the company will be hard pressed not to surprise to the upside.

Teen apparel chains have taken a beating this year from skeptical investors; Abercrombie & Fitch is down more than 70%, to 22.84, while American Eagle Outfitters has fallen 53%, to 9.81. Yet both companies have net cash -- Abercrombie's $198 million and American Eagle's $269 million. David Berman, manager of Durban Capital, a New York hedge fund, prefers American Eagle because its fashions are less pricey -- a plus, these days, for teens and parents. Abercrombie's same-store sales fell 28% in November, compared with a far more modest decline of 11% at American Eagle. Berman warns that both are likely to miss earnings estimates this year.

PE: 6 PEG: 0.65

Abercrombie is getting squished, says Karen Finerman. Their clothing is fairly expensive and people just don’t have the money. If you’re looking for a trade you might want to get long rival American Eagle [AEO] and short Abercrombie (ANF).

Cramer: Stick With These Two Retail Winners: Jim Cramer serves up his latest retail strategy.

Click here to watch the video.

MY HEAD WAS IN THE SAND

retail will be tough for a while

hurting retailer

slowing retail

i missed my chance to cash out

never moved well

Although the stock price is down, the retail industry is going to have a tough time in 2008.

Product line not attracting customers.

heading nowhere

retailer who has reached its saturation point in terms of store count and margins are at peak levels. the rollout of a new concept will hurt margins and take up mgmt focus. also exposed to faddish teen tastes