The market's recent rally has sent many retail stocks on a wild ride. But their lofty new heights have left many vastly overpriced, especially in a market full of fickle shoppers. As one of the priciest stocks in the retail sector, I think buyers should beware J. Crew (NYSE: JCG).

J. Crew's stock has skyrocketed more than 60% over the last six months. Perhaps investors have been heartened by first lady Michelle Obama's apparent fondness for J. Crew outfits. However nice that may be for the retailer's brand, it's still no reason for the stock to trade at a nosebleed-inducing 44 times earnings.

Though J. Crew has remained profitable, it hasn't been doing that well. Let's compare its actual performance with that of a few other mall-based retailers:

Company

Earnings-Per-Share Growth (TTM)

Sales Growth (TTM)

Price-to-Earnings Ratio

J. Crew

(57.1%)

4.0%

44

Aeropostale (NYSE: ARO)

31.1%

18.5%

15

Buckle (NYSE: BKE)

36.7%

26.2%

11

Hot Topic (Nasdaq: HOTT) Continued...