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The Zacks Analyst Blog Highlights: RH, Wal-Mart Stores, Children's Place and Burlington Stores

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For Immediate Release

Chicago, IL – December 13, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include RH (RH - Free Report) , Wal-Mart Stores, Inc. (WMT - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Burlington Stores, Inc. (BURL - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

4 Top Retail Stocks to Buy Before Christmas

The holiday season is approaching its peak, and the shopping frenzy is hitting the shops and streets again. However, it’s not only presents that we brainstorm for ahead of Christmas -- zeroing in on a hot spot to celebrate the Christmas weekend also tops our last-minute to-do list. Now if an ardent investor is worried about ignoring their portfolio at this moment, we would like to make investment decisions easier with four top-ranked Retail-Wholesale stocks.

The sector has suddenly become one of investors’ favorites, thanks to the auspicious start to the holiday-shopping season and the tax reform bill, which if passed is likely to lower the burden of retailers. The sector has gained 28.7% so far in the year, comfortably outperforming the S&P 500 Index, which advanced 19.2%.

Retail Season Demand

Improving labor market, rising disposable income and elevated consumer sentiment have ushered confidence in retailers about a robust holiday season. The festive season is often a make-or-break time for retailers, as it accounts for a sizeable chunk of yearly revenues and profits.

Indeed, shopping season is likely to be more blissful for retailers. With Christmas falling on Monday and 32 days after Thanksgiving, shoppers are getting one extra day compared with last year and an extended weekend to do last minute purchasing.

Overall, NRF projects a 3.6-4% rise in November and December sales (excluding autos, gas and restaurant sales) to $678.75-$682 billion, up from $655.8 billion last year and better than the five-year average sales growth of 3.5%. Data compiled by eMarketer forecasts a 3.1% jump in holiday sales (November and December) to $923.15 billion, while retail e-commerce holiday season sales are anticipated to rise 16.6%.

Having said that, we believe the sector offers lucrative opportunities for investors to make their Christmas holidays special. Here we have highlighted four Retail/Wholesale stocks with a favorable combination of 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.

4 Prominent Picks

RH, a home furnishing retailer, is a lucrative option. The stock has a long-term earnings growth rate of 34.4% and a VGM Score of A. We note that in a year, the stock has soared over 200%, while the industry has gained 10%. The company has delivered an average positive earnings surprise of 17% in the trailing four quarters and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

We also suggest investing in Wal-Mart Stores, Inc. with a long-term earnings growth rate of 6.1% and a VGM Score of B. In the past year, the stock has surged roughly 35% and outperformed the industry, which grew 27%. This operator of discount stores, supermarkets, hypermarkets and warehouse clubs delivered an average positive earnings surprise of 2.2% in the preceding four quarters and carries a Zacks Rank #2.

Investors can count on The Children's Place, Inc. 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 28%, against the industry’s decline of 14.5%. This children's specialty apparel retailer delivered an average positive earnings surprise of 14% in the preceding four quarters.

Burlington Stores, Inc., a retailer of branded apparel products, is also a lucrative option with a Zacks Rank #2 and a VGM Score of A. The company posted an average positive earnings surprise of 15.2% in the trailing four quarters and has a long-term earnings growth rate of 17.5%. The stock has surged 28.6% in the past year and comfortably outperformed the industry’s increase of only 6.1%.

More Stock News: This Is Bigger than the iPhone!

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Walmart Inc. (WMT) - free report >>

The Children's Place, Inc. (PLCE) - free report >>

RH (RH) - free report >>

Burlington Stores, Inc. (BURL) - free report >>