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4 Retail Stocks Commanding Attention on Buoyant September Sales
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The Retail-Wholesale sector draws the most attention with the advent of holiday season, and with September retail sales reaching a pinnacle since March 2015, it raises hopes for a blissful festive season. Sturdy auto sales, a surge in receipts at gasoline stations and increased demand for building materials facilitated a sharp rebound in retail sales. The Commerce Department recently stated that U.S. retail and food services sales increased 1.6% to $483.9 billion.
Analysts believe that the buoyant stock market, gradual wage acceleration, fall in the unemployment rate to 16-year low, and a lift in the economic activity post hurricanes have helped boost consumer sentiment, and this sounds favorable for retailers. Well, the retail sector has been witnessing a sea change with focus gradually shifting to online shopping. Incidentally, retailers are rapidly adopting the omni-channel mantra.
Prominent Picks
Here we have highlighted four Retail/Wholesale stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of A or B. These stocks are backed by sound fundamentals, surging share price and a track record of better-than-expected results. Not only this, these stocks have outperformed their respective industries.
RH (RH - Free Report) , a home furnishing retailer, is a lucrative option. The stock has a long-term earnings growth rate of 30% and a VGM Score of A. We note that in a year, the stock has surged over 100%, while the industry has gained 22.2%. The company has delivered an average positive earnings surprise of 21.7% in the trailing four quarters and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Domino's Pizza, Inc. (DPZ - Free Report) has also emerged as a strong contender with a long-term earnings growth rate of 16.8% and a VGM Score of B. The pizza delivery company delivered an average positive earnings surprise of 6.1% in the trailing four quarters and carries a Zacks Rank #2. In a year, the stock has surged roughly 21.2%, comfortably outperforming the industry’s growth of 14.3%.
We also suggest investing in The Children's Place, Inc. (PLCE - Free Report) with a VGM Score of A and a long-term earnings growth rate of 9%. In a year, this Zacks Rank #2 stock has advanced roughly 40.7%, while the industry witnessed a decline of 32.6%. This children's specialty apparel retailer delivered an average positive earnings surprise of 16.3% in the preceding four quarters.
Investors can count on Five Below, Inc. (FIVE - Free Report) that has a long-term earnings growth rate of 28.5% and a VGM Score of B. In a year, this Zacks Rank #2 stock has increased roughly 52%, while the industry witnessed a decline of 20.3%. This specialty value retailer delivered an average positive earnings surprise of 8.7% in the preceding four quarters.
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4 Retail Stocks Commanding Attention on Buoyant September Sales
The Retail-Wholesale sector draws the most attention with the advent of holiday season, and with September retail sales reaching a pinnacle since March 2015, it raises hopes for a blissful festive season. Sturdy auto sales, a surge in receipts at gasoline stations and increased demand for building materials facilitated a sharp rebound in retail sales. The Commerce Department recently stated that U.S. retail and food services sales increased 1.6% to $483.9 billion.
Analysts believe that the buoyant stock market, gradual wage acceleration, fall in the unemployment rate to 16-year low, and a lift in the economic activity post hurricanes have helped boost consumer sentiment, and this sounds favorable for retailers. Well, the retail sector has been witnessing a sea change with focus gradually shifting to online shopping. Incidentally, retailers are rapidly adopting the omni-channel mantra.
Prominent Picks
Here we have highlighted four Retail/Wholesale stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of A or B. These stocks are backed by sound fundamentals, surging share price and a track record of better-than-expected results. Not only this, these stocks have outperformed their respective industries.
RH (RH - Free Report) , a home furnishing retailer, is a lucrative option. The stock has a long-term earnings growth rate of 30% and a VGM Score of A. We note that in a year, the stock has surged over 100%, while the industry has gained 22.2%. The company has delivered an average positive earnings surprise of 21.7% in the trailing four quarters and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Domino's Pizza, Inc. (DPZ - Free Report) has also emerged as a strong contender with a long-term earnings growth rate of 16.8% and a VGM Score of B. The pizza delivery company delivered an average positive earnings surprise of 6.1% in the trailing four quarters and carries a Zacks Rank #2. In a year, the stock has surged roughly 21.2%, comfortably outperforming the industry’s growth of 14.3%.
We also suggest investing in The Children's Place, Inc. (PLCE - Free Report) with a VGM Score of A and a long-term earnings growth rate of 9%. In a year, this Zacks Rank #2 stock has advanced roughly 40.7%, while the industry witnessed a decline of 32.6%. This children's specialty apparel retailer delivered an average positive earnings surprise of 16.3% in the preceding four quarters.
Investors can count on Five Below, Inc. (FIVE - Free Report) that has a long-term earnings growth rate of 28.5% and a VGM Score of B. In a year, this Zacks Rank #2 stock has increased roughly 52%, while the industry witnessed a decline of 20.3%. This specialty value retailer delivered an average positive earnings surprise of 8.7% in the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>