J.Crew Stock Holding Its Own {& more!}

J.Crew's stock is performing well and the financial analysts are loving it! Over at TheStreet (click here), they share the following insight:

Southwest, J.Crew Lead High-Flying Stocks
By Jake Lynch
December 14, 2009

J.Crew Group(JCG Quote) rose 2% to $45.07. The clothing retailer's shares climbed on news that November retail sales increased 1.3%, twice as much as expected.

Snapshot: Third-quarter profit more than doubled to $44 million, or 67 cents a share, as revenue increased 14% to $414 million. J.Crew's gross margin widened from 45% to 48%, and its operating margin doubled from 9% to 18%. The company has $247 million of cash and $99 million of debt. Over a three-year period, J.Crew has grown earnings per share 84% annually, on average.

Our take: We rate J.Crew "buy." J.Crew outmaneuvered competitors during the recession and took steps to improve its balance sheet, evident in its $147 million of net cash. The stock has climbed 30% during the past three months. It's more expensive than the average specialty retailer based on all of our valuation measures. The premium is justified by growth expectations.

What are your thoughts on the article? Disagree or agree with any of the points made? Do you think J.Crew should be rated as a "buy"? Do you think J.Crew has "outmaneuvered competitors"?