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The problem with using consumer confidence as a guide to buy stocks is that consumers tend to be fickle.
Nowhere is that more true than in the clothing space, especially the teenybopper clothing space. Fall out of favor with the younger crowd and your business can be destroyed. Poor management decisions don't help, either.
As such, Pacific Sunwear (NASDAQ: PSUN) lost its mojo and has yet to find its way.
Earlier this year, shares bottomed at a price below $1 per share. Since that time, PSUN has been on fire more than tripling in value.
And just two weeks ago, the company announced another quarterly loss and drop in same-store sales. Granted, PSUN beat the number, but playing that game does little for long-term sustainability of value.
I would take some money off the table here -- PSUN is due for a pullback.
In its place, consider adding Quiksilver (NYSE: ZQK), one of my five stocks set to sizzle this summer, to your portfolio.
Up next: Consumer stock #2.
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