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Naughty & Nice Retail Stock Picks

Jennifer Zabasajja|Special to

With just six days left before Christmas, the holiday shopping season isn’t over yet, says Thomas Filandro of Susquehanna Financial Group.

“I think the opportunity exists for a big surge in business,” said Filandro. “This week, including Super Saturday, could represent just 35 percent of the business, and the week after, a total 50 percent so its not over yet.”

Though the shopping season still has a few weeks left, Susquehanna Financial Group has been keeping track and taking note of which retailers have been good and bad, and Filandro declared his overall retail winners thus far.

“American Eagle Outfitters continues to gain market share." Filandro also noted that Limited Brands , which includes Victoria’s Secret and Bath and Body Works, have also been doing quite well.

Retail's Naughty & Nice Stock Picks

Another retailer Filandro recommends is Gap . He believes the company is turning around with improved products beginning to spark interest with consumers.

“There has been a big change with this company and that’s starting to flow into the stores today. We think that is a good stock for 2012.”

Filandro said he expects Aeropostale and Urban Outfitters are struggling this holiday season

Susquehanna recently downgraded Urban Outfitters, citing given the spike in inventory levels and their concern that transactions are flat and inventory levels high, which does not bode "well."

As for the recent spike in online retail sales, Filandro says Gap yet again takes the win. “They’re probably approaching $5 billion in online sales. That’s about a 20 percent increase. They’re embracing it and they’re winning.”

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Disclosures: Susquehanna makes a market in the following securities: ANF, AEO, BBW, BKE, CHS, CHRS, GPS, LTD, PLCE, ZUMZ. He does not own shares of ANF, PLCE, and his firm has no investment banking relationship with them.