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5 ETFs & Stocks to Shrug Off Sluggish Retail Sales
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After witnessing decent growth in January, a decline in February and moderation in March, U.S. retail sales rose 0.4% sequentially in April. This followed an upwardly revised 0.1% increase in March but fell shy of market expectations of a 0.6% advancement (read: Retailers Slide: Will ETFs Bear the Pain as Q1 Unfolds?).
While retail ETFs like SPDRÂ S&P Retail ETF (XRT - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) lost about 1.8% and 0.5% on May 12, after the release of downbeat data points, we would like to note that there are several corners that can still be of investors’ interest. After all, in April, nine out of 13 key categories registered expansion in retail sales.
Below we recommend a few ETFs & stocks to make the most of U.S. retail sales, even in an environment of slowing sales growth.
Electronics and Appliance Stores
Sales at electronics and appliance stores rose 1.3% in April after registering a 2.2% rise in the prior month.
Since semiconductors are used in electronic components, a look at semiconductor ETFs makes sense. The fund charges 48 bps in fees (read: 5 ETFs to Tap the Hot NVIDIA).
Control4 Corporation
The company offers home operating system that interacts with various music, video, lighting, temperature, security, and communications. It has a Zacks Rank #2 (Buy) and its Zacks Industry Rank is in the top 39%.
Motor Vehicles
Motor vehicle sales bounced back 0.7% in April after falling 0.5% in the prior month.
It offers a pure play global exposure to over 30 auto stocks by tracking the NASDAQ OMX Global Auto Index. It is a large cap centric fund. The product charges 70 bps in fees per year (read: Smooth Ride Ahead for Auto ETF?).
It is one of the largest automotive retailers in the U.S. The stock has a Zacks Rank #3 (Hold).
Health & Personal Care
Health and personal care stores logged 0.8% growth in April from 0.7% in March.
The Health and Fitness ETF
The fund tracks the performance of companies globally that are positioned to profit from servicing those participating in health and fitness activities. It is likely to cash in on the growing health consciousness among consumers.
The Zacks Rank #1 (Strong Buy) is a global network marketing company offering a range of weight management products, nutritional supplements and personal care products. The Zacks Industry Rank is in the top 39%.
Leisure and Recreation Products
Retail sales for sporting goods, hobby, book and music stores grew 0.6% in April from 0.3% decline in March.
PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ - Free Report)
The underlying index of the fund picks stocks relying on factors like price momentum, earnings momentum, quality, management action, and value. It gives exposure to U.S.-based leisure and entertainment companies. The fund charges 61 bps in fees.
Black Diamond, Inc.
This Zacks Rank #1 company operates as a manufacturer and distributor of outdoor recreation equipment and active lifestyle products. The Zacks Industry Rank is in the top 13%.
Non-Store Retailers
Sales at non-store retailers rose 1.4% following a 1.1% rise in March.
The underlying index of the fund utilizes a rule-based methodology to select a globally diversified group of companies with 70% or more of revenue from online and virtual sales. The fund charges 65 bps in fees.
Stamps.com Inc.
This Zacks Rank #1 company offers Internet-based services for mailing or shipping letters, packages or parcels anywhere in the U.S. The Zacks Industry Rank is in the top 16%.
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5 ETFs & Stocks to Shrug Off Sluggish Retail Sales
After witnessing decent growth in January, a decline in February and moderation in March, U.S. retail sales rose 0.4% sequentially in April. This followed an upwardly revised 0.1% increase in March but fell shy of market expectations of a 0.6% advancement (read: Retailers Slide: Will ETFs Bear the Pain as Q1 Unfolds?).
While retail ETFs like SPDRÂ S&P Retail ETF (XRT - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report) lost about 1.8% and 0.5% on May 12, after the release of downbeat data points, we would like to note that there are several corners that can still be of investors’ interest. After all, in April, nine out of 13 key categories registered expansion in retail sales.
Below we recommend a few ETFs & stocks to make the most of U.S. retail sales, even in an environment of slowing sales growth.
Electronics and Appliance Stores
Sales at electronics and appliance stores rose 1.3% in April after registering a 2.2% rise in the prior month.
iShares PHLX Semiconductor (SOXX - Free Report)
Since semiconductors are used in electronic components, a look at semiconductor ETFs makes sense. The fund charges 48 bps in fees (read: 5 ETFs to Tap the Hot NVIDIA).
Control4 Corporation
The company offers home operating system that interacts with various music, video, lighting, temperature, security, and communications. It has a Zacks Rank #2 (Buy) and its Zacks Industry Rank is in the top 39%.
Motor Vehicles
Motor vehicle sales bounced back 0.7% in April after falling 0.5% in the prior month.
First Trust NASDAQ Global Auto ETF (CARZ - Free Report)
It offers a pure play global exposure to over 30 auto stocks by tracking the NASDAQ OMX Global Auto Index. It is a large cap centric fund. The product charges 70 bps in fees per year (read: Smooth Ride Ahead for Auto ETF?).
America's Car-Mart Inc. (CRMT - Free Report)
It is one of the largest automotive retailers in the U.S. The stock has a Zacks Rank #3 (Hold).
Health & Personal Care
Health and personal care stores logged 0.8% growth in April from 0.7% in March.
The Health and Fitness ETF
The fund tracks the performance of companies globally that are positioned to profit from servicing those participating in health and fitness activities. It is likely to cash in on the growing health consciousness among consumers.
Herbalife LTD. (HLF - Free Report)
The Zacks Rank #1 (Strong Buy) is a global network marketing company offering a range of weight management products, nutritional supplements and personal care products. The Zacks Industry Rank is in the top 39%.
Leisure and Recreation Products
Retail sales for sporting goods, hobby, book and music stores grew 0.6% in April from 0.3% decline in March.
PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ - Free Report)
The underlying index of the fund picks stocks relying on factors like price momentum, earnings momentum, quality, management action, and value. It gives exposure to U.S.-based leisure and entertainment companies. The fund charges 61 bps in fees.
Black Diamond, Inc.
This Zacks Rank #1 company operates as a manufacturer and distributor of outdoor recreation equipment and active lifestyle products. The Zacks Industry Rank is in the top 13%.
Non-Store Retailers
Sales at non-store retailers rose 1.4% following a 1.1% rise in March.
Amplify Online Retail ETF (IBUY - Free Report)
The underlying index of the fund utilizes a rule-based methodology to select a globally diversified group of companies with 70% or more of revenue from online and virtual sales. The fund charges 65 bps in fees.
Stamps.com Inc.
This Zacks Rank #1 company offers Internet-based services for mailing or shipping letters, packages or parcels anywhere in the U.S. The Zacks Industry Rank is in the top 16%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>