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The Zacks Analyst Blog Highlights: G-III Apparel Group, Delta Apparel, Callaway Golf and Columbia Sportswear
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For Immediate Release
Chicago, IL – June 18, 2018 – 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 G-III Apparel Group, Ltd. (GIII - Free Report) , Delta Apparel, Inc. (DLA - Free Report) , Callaway Golf Co. and Columbia Sportswear Co. (COLM - Free Report) .
Per the latest data from the U.S. Commerce Department, retail sales for the month of May surged to its highest settlement in the last six months. Americans spent more on buying cars and other luxury goods even as unemployment remained at an18-year low.
Such growth indicates that the country’s GDP is set to gain momentum in the second quarter. Moreover, low unemployment and wage growth has also boosted consumer spending. Under such broadly encouraging conditions, investing in consumer discretionary stocks would be prudent.
Retail Sales Hit a Six-Month High
Retail sales surged to its highest levels since November 2017, increasing 0.8% in the month. This also represented a 5.9% increase from the last year and follows the revised 0.4% growth in April. Further, if automobiles, gasoline, building materials and food services are excluded, the metric registered 0.5% growth in May.
Sales of automobiles jumped 0.5% in the month, following a 0.2% increase in April. Also, sales at service station were up 2% in May, indicating higher-than-normal gasoline prices. This apart, the average American spent more on clothes as well as in restaurants and bars, both rising 1.3% in the last month. While the jump in apparel sales marked its biggest advance since March 2017, receipts at restaurants and bars registered the biggest gain since January 2017.
Robust retail sales have renewed hopes of strong economic growth in the second quarter. A surge in retail sales reflects increased consumer spending, which contributes heavily to GDP. Experts estimate that the economy would accelerate at an annualized pace of 4.6% in the April-June period.
Low Unemployment, High Hourly Wages
Per the U.S. Bureau of Labor Statistics, the U.S. economy witnessed a mindboggling 223,000 new job additions in May. The consensus estimate for the period was 190,000 new job additions. This also marked the highest number of job additions in the last three months. Notably, the unemployment rate remained unchanged at 3.8% in May, its lowest since April 2000. Moreover, the total number of unemployed is down by 772,000 or 0.5%, over the year.
Further, average hourly earnings jumped 0.3% to $26.92 in May, higher than the consensus estimate of an increase of 0.2%. From May last year alone, average hourly earnings have advanced 2.7%. Along with higher wages, the average workweek for all employees came in at 34.5 hours last month.
Further, weekly jobless claims for the week ending June 9, fell to a near 45-year low to 218,000 claims. A robust labor market results in higher wages. Such a turn of events is likely to boost consumer spending. This sequence of events is quite likely in the current scenario because consumers spent more despite unusually high gasoline prices.
4 Hot Choices
Americans spent more on luxury items last month which boosted overall retail sales in May. Such developments clearly indicate that the U.S. economy is on track for stupendous growth in the second quarter. Further, higher than usual wages and low unemployment propelled retail sales last month.
In this context, we have selected four consumer discretionary stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
G-III Apparel Group, Ltd. is the designer and manufacturer of both men’s and women’s apparel in the United States as well as across the globe.
The company is based out of New York, NY and has a Zacks Rank #1. The expected earnings growth rate for the current year is 14.38%. The Zacks Consensus Estimate for the current year has improved 15.2% over the last 60 days.
Delta Apparel, Inc. is a designer and manufacturer of a variety of lifestyle products and branded apparel, headwear and related accessories.
The company is based out of Greenville, SC and has a Zacks Rank #1. The expected earnings growth rate for the current year is 12.78%. The Zacks Consensus Estimate for the current year has improved 11.1% over the last 60 days.
Callaway Golf Co. is a manufacturer and seller of golf clubs, golf balls, golf bags, and other golf-related accessories.
The company is based out of Carlsbad, CA and has a Zacks Rank #2. The expected earnings growth rate for the current year is 53.21%. The Zacks Consensus Estimate for the current year has improved 15.7% over the last 60 days.
Columbia Sportswear Co. is a designer and distributor of outdoor and active lifestyle apparel, footwear and related accessories.
The company is based out of Portland, OR and has a Zacks Rank #2. The expected earnings growth rate for the current year is 12.46%. The Zacks Consensus Estimate for the current year has improved 3.1% over the last 60 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: G-III Apparel Group, Delta Apparel, Callaway Golf and Columbia Sportswear
For Immediate Release
Chicago, IL – June 18, 2018 – 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 G-III Apparel Group, Ltd. (GIII - Free Report) , Delta Apparel, Inc. (DLA - Free Report) , Callaway Golf Co. and Columbia Sportswear Co. (COLM - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
4 Stocks to Ride the Surge in Retail Sales
Per the latest data from the U.S. Commerce Department, retail sales for the month of May surged to its highest settlement in the last six months. Americans spent more on buying cars and other luxury goods even as unemployment remained at an18-year low.
Such growth indicates that the country’s GDP is set to gain momentum in the second quarter. Moreover, low unemployment and wage growth has also boosted consumer spending. Under such broadly encouraging conditions, investing in consumer discretionary stocks would be prudent.
Retail Sales Hit a Six-Month High
Retail sales surged to its highest levels since November 2017, increasing 0.8% in the month. This also represented a 5.9% increase from the last year and follows the revised 0.4% growth in April. Further, if automobiles, gasoline, building materials and food services are excluded, the metric registered 0.5% growth in May.
Sales of automobiles jumped 0.5% in the month, following a 0.2% increase in April. Also, sales at service station were up 2% in May, indicating higher-than-normal gasoline prices. This apart, the average American spent more on clothes as well as in restaurants and bars, both rising 1.3% in the last month. While the jump in apparel sales marked its biggest advance since March 2017, receipts at restaurants and bars registered the biggest gain since January 2017.
Robust retail sales have renewed hopes of strong economic growth in the second quarter. A surge in retail sales reflects increased consumer spending, which contributes heavily to GDP. Experts estimate that the economy would accelerate at an annualized pace of 4.6% in the April-June period.
Low Unemployment, High Hourly Wages
Per the U.S. Bureau of Labor Statistics, the U.S. economy witnessed a mindboggling 223,000 new job additions in May. The consensus estimate for the period was 190,000 new job additions. This also marked the highest number of job additions in the last three months. Notably, the unemployment rate remained unchanged at 3.8% in May, its lowest since April 2000. Moreover, the total number of unemployed is down by 772,000 or 0.5%, over the year.
Further, average hourly earnings jumped 0.3% to $26.92 in May, higher than the consensus estimate of an increase of 0.2%. From May last year alone, average hourly earnings have advanced 2.7%. Along with higher wages, the average workweek for all employees came in at 34.5 hours last month.
Further, weekly jobless claims for the week ending June 9, fell to a near 45-year low to 218,000 claims. A robust labor market results in higher wages. Such a turn of events is likely to boost consumer spending. This sequence of events is quite likely in the current scenario because consumers spent more despite unusually high gasoline prices.
4 Hot Choices
Americans spent more on luxury items last month which boosted overall retail sales in May. Such developments clearly indicate that the U.S. economy is on track for stupendous growth in the second quarter. Further, higher than usual wages and low unemployment propelled retail sales last month.
In this context, we have selected four consumer discretionary stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
G-III Apparel Group, Ltd. is the designer and manufacturer of both men’s and women’s apparel in the United States as well as across the globe.
The company is based out of New York, NY and has a Zacks Rank #1. The expected earnings growth rate for the current year is 14.38%. The Zacks Consensus Estimate for the current year has improved 15.2% over the last 60 days.
Delta Apparel, Inc. is a designer and manufacturer of a variety of lifestyle products and branded apparel, headwear and related accessories.
The company is based out of Greenville, SC and has a Zacks Rank #1. The expected earnings growth rate for the current year is 12.78%. The Zacks Consensus Estimate for the current year has improved 11.1% over the last 60 days.
Callaway Golf Co. is a manufacturer and seller of golf clubs, golf balls, golf bags, and other golf-related accessories.
The company is based out of Carlsbad, CA and has a Zacks Rank #2. The expected earnings growth rate for the current year is 53.21%. The Zacks Consensus Estimate for the current year has improved 15.7% over the last 60 days.
Columbia Sportswear Co. is a designer and distributor of outdoor and active lifestyle apparel, footwear and related accessories.
The company is based out of Portland, OR and has a Zacks Rank #2. The expected earnings growth rate for the current year is 12.46%. The Zacks Consensus Estimate for the current year has improved 3.1% over the last 60 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.