Zach Warring says ANF is coming back strong, with “grassroots” advertising and double-digit growth in both Abercrombie and Hollister brands. David Swartz looks at Macy’s (M), which he says is in the beginnings of a turnaround plan and thinks the stock is undervalued right now. He also likes Gap’s (GAP) margin improvement in their most recent report. Zach notes that he’s downgraded several retail stocks to Hold recently because of stretched valuations, but his top picks are ANF and PVH.