Although trendy fashion retailer Guess (GES) prints red ink for the year so far, GES stock seemingly presents a viable upside proposition for contrarian speculators. As Barchart contributor Rick Orford rightfully points out, the underlying economy has been resilient. One only needs to look at the May jobs report where the labor market printed a much stronger figure than experts anticipated.
By logical deduction, Orford stated that because the employment arena continues to be robust, “…consumers feel comfortable with increasing their spending, which plays a significant role in [the consumer discretionary] sector.” For those that want to take a swing at the bat, GES stock offers another compelling reason for speculation: passive income.
