Apple (AAPL) blew away earnings this week and shares road upward. High-end retail, too, has been doing well of late as proof that people are spending money again on the hot stuff -- whether technology or clothing -- they really want.

 

That bodes well for companies catering to that highly lucrative segment of the market. One of my favorite names with tremendous growth potential right now is Joe’s Jeans (JOEZ). The purveyor of expensive jeans is just beginning to explode.

 

I discovered the stock last year and recommended shares when the company was trading for only $.67 per share. Since that time the stock has appreciated in value by more than 300% to a current price of $2.76 per share. (I recently made Joe's one of my Top Stocks for 2010)

 

That 300% appreciation is only the beginning.

 

I’m not much of a fashion icon, but my wife sure knows style. Without having any prior knowledge of my professional interest in Joe’s Jeans the company she has purchased two pairs of the brand so far this year.

 

When asked why, the answer is telling. She loves the look and more importantly she notes that the fashion industry, those supposedly in the know have identified the jean as a trendy item.

 

Movie and television stars are apparently in love with Joe’s. Oprah Winfrey touts Joe’s on her style website. We’ve seen what impact Oprah can have on sales of products given her endorsement.

 

The same can happen with Joes.

 

Take a look around. In my town I see women wearing the jeans when in years past I never noticed. This is a trend that is taking hold and it bodes quite well for Joe’s the stock.

 

For a comparison let’s take a quick look at another high end jeans company, True Religion (TRLG). This pioneer in the top dollar jean space has a market capitalization of approximately $760 million.

 

The market capitalization of Joe’s Jean’s is a mere $170 million.

 

True Religion attained that market cap with growth by opening stores and expanding its brand. That is exactly the game plan that will be followed by Joe’s Jeans. True Religion has approximately 70 retail locations. Joe’s has less than 10.

 

From a valuation perspective Joe’s trades for 2.8 times book value and 21 times expected earnings. The book value price may be a tad pricey, but expect Joe’s to grow book value quickly with positive earnings thereby reducing that valuation.

 

Joe’s is a fantastic growth story and opportunity. It is in the right place at the right time. Investors can still ride this wave to significant returns as this story develops. I can see the stock doubling in value in less than a year’s time.

 

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