In his Validea newsletter and his just published book Guru Strategies, stock advisor John Reese assesses companies based on the investment strategies of "legendary investors" such as Ben Graham and Warren Buffett.

Recently, the advisor has highlighted two retailers that pass his guru screens: Gildan Activewear (NYSE: GIL) and Jos. A. Bank Clothiers (NASDAQ: JOSB). Here's his contrarian look at the two out-of-favor firms.

"You might never have heard Gildan Activewear, a Montreal-based clothing manufacturer, but you may well have worn its products. Gildan sells T-shirts, sport shirts and fleece to wholesale distributors as 'blanks' -- that is, without logos or decorating. Screen printers then decorate the items with various designs and logos.

"Jos. A. Bank Clothiers, Inc. (NASDAQ: JOSB) matches the value criteria used by our Benjamin Graham stock screening model by 100%," suggests John Reese.

In his Validea newsletter, he assesses stocks based on the strategies of numerous "legendary" stock market investors. Here's his review of the apparel retailing chain.

"Jos. A. Bank is a designer, retailer and direct marketer of men's tailored and casual clothing and accessories through stores, catalog and Internet.

"The company sells substantially all of its products exclusively under the Jos. A. Bank label through its 422 retail stores, as well as through the company's nationwide catalog and Internet operations.

"Our Ben Graham stock selection model requires that the current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. JOSB's current ratio of 2.81 passes the test.

In retailing, quality and unconditional guarantees rarely combine to produce low prices. There is a men's clothing outfit in Hampstead, Maryland that aims to balance the equation by working directly with the best factories.

Jos. A. Bank Clothiers (NASDAQ: JOSB) is one of the nation's leading retailers of men's classically-styled tailored clothing, footwear and accessories. The firm added casual wear to the mix, when corporate America began recognizing dress-down days. It also debuted the David Leadbetter line of golf wear. The company sells its full product line through 382 stores in 42 states, a nationwide catalog and an e-commerce website. Competitors include Men's Wearhouse (NYSE:MW) and Federated Department Stores (NYSE:FD).

The firm pleased investors earlier in the week, when it reported fiscal Q4 EPS of $1.36 and revenues of $194.1 million. Analysts had been expecting $1.25 and $190.2 million. Net income for the fiscal year climbed to $2.36 per share ($2.24 consensus) and revenues came in at $546.4 million ($544.3M consensus). JOSB shares popped through 30-day moving average resistance on the news and are now forming a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the stock with two "strong buys" and five "holds." Analysts see a 15% average annual growth rate, through the next five years. The JOSB P/E ratio (16.27), PEG ratio (1.08), Price to Sales ratio (1.27), Price to Book ratio (3.32), Price to Cash Flow ratio (11.73), Price to Free Cash Flow ratio (23.26), Sales Growth rate (18.48%), EPS Growth rate (33.33%), Return on Assets (12.84%), Return on Investment (19.08%) and Return on Equity (23.88%) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $22.14 and $43.62. A stop-loss of $33.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.