Now to a stock that recently caught my eye.

Most retailers have suffered greatly during the recession, but one is making waves with newly frugal shoppers. The company is Aeropostale (ARO) and it was featured in Cabot Top Ten Report this Monday, where Editor Michael Cintolo wrote:

“While most retailers have been hit hard by the recession, Aeropostale’s commitment to bringing affordable clothes to teens has paid off for the company. Same-store sales were up a huge 9% in August, beating analysts’ forecasts. Aeropostale mainly uses a value-pricing approach, differentiating the company from many of its rivals. Earnings are increasing and earnings estimates are gaining momentum. There are 244 funds on board and that number is growing with every quarter. It looks like Aeropostale has a winning formula for the new budget-conscious retail market. Of note is the fact that Aeropostale is making its eighth Cabot Top Ten Report appearance (three previous in 2009; one in 2008; three in 2004). We know from experience it’s likely to be back again.

“ARO peaked at 37 in October 2008, and after taking a trip into the basement in the bear market when consumers reduced spending, it returned to the 37 level this May. The base it then built took more than three months to complete, a period that shook out less-patient investors. We last recommended it in June at 34. Then on August 21, ARO gapped up to 40, and the uptrend that began then remains intact today. The past few days have seen the stock cool off and we think you can buy it here.”

Companies like Aeropostale, with an eye on customers’ wallets, will likely become staples of the post-recession economy. And ARO looks like a good way to ride this trend.