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Zara owner

Inditex

has developed an innovative way to manage its inventory, a move that has been overlooked by the market. The system is driving down costs and increasing profit margins, and that isn’t yet factored into the share price.

The world’s largest fashion retailer (ticker ITX.Spain) is expensive, fetching a high multiple of 27 times this year’s expected earnings, but it is valued in line with its peers.