"One of ace investor Peter Lynch's favorite business models is the "cookie-cutter," which simply involves building the same successful store again and again in new places; McDonald's perfected the model, and Whole Foods Market (WFMI) is following the same profitable path, though at a higher price poin," says Timothy Lutts, who has chosen the stock as his featured monthly buy recommendation.

The editor of Cabot Stock of the Month explains, "McDonald's competed on price; Whole Foods competes on quality, targeting the consumer who wants healthy organic food and will pay more to get it.

In very contrarian fashion, Bernie Schaeffer has used the market pullback to initiate two positions in retail stocks.

The editor of Schaeffer's Research -- who uses a combination of technical, fundamental and sentiment-based metrics to select his trading positions -- has bought shares of Sears Holdings (SHLD) and Williams-Sonoma (WSM).

Schaeffer explains, "I initiated a long position in Sears Holdings. Price action for SHLD has been strong, with the equity up 13 percent year-to-date and 75 percent in the past 52 weeks.

"Our latest pick, MercadoLibre (MELI), takes us to Argentina, not a country known for its stable political climate," says international specialist Nicholas Vardy.

The editof of The Global Bull Market Alert explains, "But MercadoLibre is more of a bet on e-commerce and on Latin America as a whole, rather than on Argentina in particular. It's best to think of MercadoLibre as the "eBay of Latin America."

"If a correction occurs, I expect it to be of the garden-variety type, perhaps -5% to -7%; and, of course, if you're going to stay long in this market, the better stocks to own are those that go up in a down market ," suggests trading specialist Mike Turner.

The editor of Mastering the Markets explains, 'As such, I had my proprietary systems focus on the best scoring stocks that were moving higher in price while the market fell on Friday. My top scoring stock for this test is GameStop (GME).

"Our safety-first portfolio is built using bottom-up, fundamental analysis to choose individual investments; one new buy in our portfolios is Darden Resaurants (DRI)," says James Stack.

The money manager and editor of InvesTech Market Analyst explains, "Darden is a destination dining experience. Unlike the pop-in chain restaurants where the meal is on the way to some other event, Darden's nearly 1,800 locations are in themselves the "event."

"Coach (COH) is primarily known for its luxury handbags. The company also sells leathergoods, business cases, travel accessories, footwear, watches, outerwear, scarves, sunwear, jewelry, fragrance, and related accessories," says Geoffrey Seiler.

The editor of BullMarket.com points out, "At the end of 2009, Coach had 343 retail stores and 118 factory stores in North America. It also had 163 shops in Japan and 37 in China."

"Everybody on Wall Street is looking for an edge. Our Quadrix® rating system is our edge, and we're always looking for ways to enhance its effectiveness," says quantitative analyst Richard Moroney.

In his Upside newsletter, he explain, "Among the best enhancements we've discovered focuses on the volatility of Overall Quadrix scores. Stocks with a history of steady Overall scores tend to have steady scores going forward. Below we look at two such stocks with strong and stable Quadrix scores."

Kraft Foods Inc. (KFT) issued its fourth-quarter report earlier today. Sales increased over 3%, but organic net revenues were flat. Restructuring initiatives helped to drive a very significant jump in operating income, as well as a nice expansion of the operating margin. Net income from continuing businesses came in at 48 cents per share. Not only did this represent robust growth, but it beat estimates by three pennies, according to our earnings preview.

Management promoted an awesome fact in the release: free cash flow was up over 30% for the full fiscal year. Changes in working capital aided the increase. I like it.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Discount retailers are in high fashion right now, and 2010 could be a good time to capitalize on the macro-level trend toward value-driven consumption as consumers battle too much debt and a weak labor market," says Michael Vodicka.

To benefit from this trend, the momentum stock strategist for Zacks.com looks to Dollar Tree (DLTR) as his top pick for the coming year.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"I've been tracking the companies I feel are best positioned to sustain the market's upward momentum into next year," says Karim Rahemtulla.

The options expert with Investment U suggests, "One such company is Electronic Arts (ERTS) -- a major player in the video game industry."

"For a pure play in automated and remotely controlled vehicles, consider iRobot (NASDAQ: IRBT)," says Jim Powell. Here's the latest from his Global Changes & Opportunities Report.

"The company is best known for its Roomba vacuum cleaners that wander around the house bumping into everything and setting off security alarms.

"A similar product cleans the surface of swimming pools. iRobot also makes automated mail and product delivery carts for businesses.

"Walgreen (NYSE: WAG) reported fourth quarter profits that topped Wall Street's expectations," says Geoffrey Seiler.

In his BullMarket,com advisory, he forecasts, "We expect to see continued operational improvements in the months ahead." Here, the advisor reiterates his buy rating and boosts his price target for the stock.

The advisor observes,, "The company reported a net profit of $436 million, or 44 cents per share, for the quarter ended August 31st, a -1.5% decrease the same quarter a year ago. Results topped the Wall Street consensus by 5 cents share and edged the full-year EPS estimate by 3 cents.

"One of the guiding principles of our growth investing system is the concept that major trends tend to persist longer and go farther than originally expected," says Timothy Lutts.

In The Cabot Stock of the Month, he explains, "It's a principle that supports our current bullish market stance and our recommendation of Green Mountain Coffee Roasters (NASDAQ: GMCR), even though the stock is already up more than four-fold since March."

"The business, of course, is coffee, a true global mass-market product. And while Starbucks' stock peaked in 2006 (ending a 14-year run), Green Mountain Coffee Roasters is younger and far less famous.

"Vacationers and professionals finally appear to be hitting the road, and many are relying on Expedia (NASDAQ: EXPE) to handle the details," says Nathan Slaughter in Half-Priced Stocks.

The value investor explains, "Expedia's travel sites processed 15.3 million transactions during the second quarter, 18% above the same period last year. Howevver, the gross dollar amount of those bookings dipped slightly to $5.6 billion/

"Whenever you have more trips bringing in less money, it's a pretty good indication that prices are way down.

Validea is an intriguing newsletter that selects stocks based on the strategies of the market's most legendary investors. Here, editor John Reese takes a look at Aeropostale (NYSE: ARO).

"This mall-based clothing retailer targets youngsters age 14 to age 17 through more than 900 stores in 49 states, Puerto Rico, and Canada.

"The company has developed a new retail store concept called P.S. from Aeropostale, which will offer casual clothing and accessories focusing on elementary school children between the ages of seven and 12.