×

These retailers could be bargains: Analyst

While the retail sector was up about 2.5 percent for the month of October, several apparel retailers haven't been so fortunate. With shares down in names like Urban Outfitters and Kohl's, retail analyst Dana Telsey said there may be bargains to be had.

For example, Urban Outfitters, which lost 17 percent in October, could potentially do better, she told CNBC on Monday.

"It has been a couple quarters that it's been weak. We are beginning to see the online portion of Urban Outfitters do better than some of the stores portion and we may see that lift," she said in an interview with "Street Signs."

Read MoreOnline sales growth to slow this holiday

Pedestrians walk by an Urban Outfitters store in San Francisco.
David Paul Morris | Bloomberg | Getty Images
Pedestrians walk by an Urban Outfitters store in San Francisco.

Overall, basic apparel has been really struggling, Telsey noted.

Apparel "has been weaker than overall retail because where's the trend, where's the must-have item? It's been hard to find unless you are athletic and active," she said.

Read MoreMusic and retail: Shop (and dance?) 'til you drop

That was reflected in October's numbers, J.C. Penney shares down 24 percent, Francesca's down 14 percent, and American Eagle and Kohl's both slumping 11 percent.

"Many of those names ... all guided the third-quarter same-store sales results lower than originally expected. So the minute it came out that their sales were a little bit weaker, the stocks came in," she explained.

Telsey thinks another potential comeback name is Kohl's. The retailer has a lot of loyalty card members and if they come back into stores it could possibly boost the fourth quarter, she said.

Read MoreHere's what shoppers will spend on this holiday

When it comes to her favorite picks for the holiday shopping season, those names aren't on the list. Instead, she likes Ulta Salon, Tiffany, L Brands, Macy's and Nordstrom.

CNBC's Jackie O'Sullivan contributed to this report

Disclosure: Tesley Advisory Group provides investment banking and other noninvestment banking securities related services, and nonsecurities services, and may seek such relationships from companies about whom it provides research.

Disclaimer