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The Zacks Analyst Blog Highlights: Macy's, Nordstrom, Boot Barn, American Eagle, Dollar General, TJX and Kohl's
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For Immediate Release
Chicago, IL –August 15, 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: Macy's, Inc. (M - Free Report) , Nordstrom, Inc. (JWN - Free Report) , Boot Barn Holdings, Inc. (BOOT - Free Report) , American Eagle Outfitters, Inc. (AEO - Free Report) , Dollar General Corporation (DG - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and Kohl's Corporation (KSS - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
US Retail Sales Expectations for 2018 Up By a Notch: 5 Picks
This year, sales at U.S. retailers are positioned to outdo expectations on higher income, tight labor market and tax reform package from President Trump’s administration. This surely puts the spotlight on retailers that are poised to make the most of the anticipated sales uptick.
NRF Lifts 2018 U.S. Retail Sales Forecast
On Aug 13, the National Retail Federation (NRF) said that it expects retail sales to climb higher than what had been earlier projected. Spending at retailers for this year — excluding automobiles, gasoline stations and restaurants — is predicted to grow 4.5% year over year. The trade organization had projected a modest growth range of 3.8% to 4.4% in February.
NRF asserted that for the first half of this year, retail sales improved 4.8% over the same period last year in spite of a poor show in January. In the most recent three-month moving average, retail sales ticked up 4.4% year over year.
The retail sectors’ rebound has been apparent on Wall Street as well, with Macy's, Inc. stock rising 52.3% this year. Meanwhile, Nordstrom, Inc. is trading near its 52-week high of $54.61 and several retail ETFs are hitting record highs.
Factors That Will Boost Spending
Disposable personal income increased $167.5 billion, or 4.5% in the second quarter, which followed a gain of $256.7 billion or 7% in the first quarter. The recent jobs report also painted a pretty picture of an economy with opportunities for almost everyone.
The U.S. economy added 157,000 new jobs in July and has risen for 94 successive months, the longest streak on record. The economy, at the same time, created 59,000 more jobs in May and June than earlier reported. Thus, the average gains for the three-month period came in a solid 224,000.
The jobless rate, in the meantime, dropped to 3.9%. This is the eighth time that the unemployment rate has fallen below the 4% mark since 1970. The current unemployment rate is now at a nearly two-decade low. The real unemployment rate, also known as U6, contracted to 7.5% from 7.6%. The U6 now stands at a level lower than it was during the 2007-2009 recession.
5 Top Winners
Taking the spending spree into account, retailers are set to witness a strong rally. Hence, it will be wise to invest in these five solid retail stocks. These stocks also have a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Boot Barn Holdings, Inc. operates specialty retail stores in the United States. Currently, the company has a Zacks Rank #1. In the last 60 days, six earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 12.7% in the same period. The company’s projected growth rate for the current year is 64.3%, while the Retail - Apparel and Shoes industry is expected to gain 15.4%.
American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle Outfitters and Aerie brands. Currently, the company has a Zacks Rank #2. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.7% in the same period. The company’s projected growth rate for the current year is 31%, while the Retail - Apparel and Shoes industry is expected to gain 15.4%.
Dollar General Corporation, a discount retailer, provides various merchandise products in the Southern, Southwestern, Midwestern, and Eastern United States. Currently, the company has a Zacks Rank #2. In the last 60 days, one earnings estimate moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.2% in the same period. The company’s projected growth rate for the current year is 75%, while the Retail - Discount Stores industry is expected to gain only 7.1%.You can see the complete list of today’s Zacks #1 Rank stocks here.
The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer. The company currently has a Zacks Rank #2. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.2% in the same period. The company’s projected growth rate for the current year is 20.1%, while the Retail - Discount Stores industry is expected to gain 18.2%.
Kohl's Corporation operates as an omni-channel retailer in the United States. Its stores and Website offer apparel, footwear, accessories, beauty, and home products. Currently, the company has a Zacks Rank #2. In the last 60 days, three earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 0.4% in the same period. The company’s projected growth rate for the current year is 28.9%, while the Retail - Regional Department Stores industry is expected to gain 19.7%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Macy's, Nordstrom, Boot Barn, American Eagle, Dollar General, TJX and Kohl's
For Immediate Release
Chicago, IL –August 15, 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: Macy's, Inc. (M - Free Report) , Nordstrom, Inc. (JWN - Free Report) , Boot Barn Holdings, Inc. (BOOT - Free Report) , American Eagle Outfitters, Inc. (AEO - Free Report) , Dollar General Corporation (DG - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and Kohl's Corporation (KSS - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
US Retail Sales Expectations for 2018 Up By a Notch: 5 Picks
This year, sales at U.S. retailers are positioned to outdo expectations on higher income, tight labor market and tax reform package from President Trump’s administration. This surely puts the spotlight on retailers that are poised to make the most of the anticipated sales uptick.
NRF Lifts 2018 U.S. Retail Sales Forecast
On Aug 13, the National Retail Federation (NRF) said that it expects retail sales to climb higher than what had been earlier projected. Spending at retailers for this year — excluding automobiles, gasoline stations and restaurants — is predicted to grow 4.5% year over year. The trade organization had projected a modest growth range of 3.8% to 4.4% in February.
NRF asserted that for the first half of this year, retail sales improved 4.8% over the same period last year in spite of a poor show in January. In the most recent three-month moving average, retail sales ticked up 4.4% year over year.
The retail sectors’ rebound has been apparent on Wall Street as well, with Macy's, Inc. stock rising 52.3% this year. Meanwhile, Nordstrom, Inc. is trading near its 52-week high of $54.61 and several retail ETFs are hitting record highs.
Factors That Will Boost Spending
Disposable personal income increased $167.5 billion, or 4.5% in the second quarter, which followed a gain of $256.7 billion or 7% in the first quarter. The recent jobs report also painted a pretty picture of an economy with opportunities for almost everyone.
The U.S. economy added 157,000 new jobs in July and has risen for 94 successive months, the longest streak on record. The economy, at the same time, created 59,000 more jobs in May and June than earlier reported. Thus, the average gains for the three-month period came in a solid 224,000.
The jobless rate, in the meantime, dropped to 3.9%. This is the eighth time that the unemployment rate has fallen below the 4% mark since 1970. The current unemployment rate is now at a nearly two-decade low. The real unemployment rate, also known as U6, contracted to 7.5% from 7.6%. The U6 now stands at a level lower than it was during the 2007-2009 recession.
5 Top Winners
Taking the spending spree into account, retailers are set to witness a strong rally. Hence, it will be wise to invest in these five solid retail stocks. These stocks also have a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Boot Barn Holdings, Inc. operates specialty retail stores in the United States. Currently, the company has a Zacks Rank #1. In the last 60 days, six earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 12.7% in the same period. The company’s projected growth rate for the current year is 64.3%, while the Retail - Apparel and Shoes industry is expected to gain 15.4%.
American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle Outfitters and Aerie brands. Currently, the company has a Zacks Rank #2. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.7% in the same period. The company’s projected growth rate for the current year is 31%, while the Retail - Apparel and Shoes industry is expected to gain 15.4%.
Dollar General Corporation, a discount retailer, provides various merchandise products in the Southern, Southwestern, Midwestern, and Eastern United States. Currently, the company has a Zacks Rank #2. In the last 60 days, one earnings estimate moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.2% in the same period. The company’s projected growth rate for the current year is 75%, while the Retail - Discount Stores industry is expected to gain only 7.1%.You can see the complete list of today’s Zacks #1 Rank stocks here.
The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer. The company currently has a Zacks Rank #2. In the last 60 days, two earnings estimates moved north, while none moved south for the current year. The Zacks Consensus Estimate for earnings rose 0.2% in the same period. The company’s projected growth rate for the current year is 20.1%, while the Retail - Discount Stores industry is expected to gain 18.2%.
Kohl's Corporation operates as an omni-channel retailer in the United States. Its stores and Website offer apparel, footwear, accessories, beauty, and home products. Currently, the company has a Zacks Rank #2. In the last 60 days, three earnings estimates moved up, while none moved down for the current year. The Zacks Consensus Estimate for earnings rose 0.4% in the same period. The company’s projected growth rate for the current year is 28.9%, while the Retail - Regional Department Stores industry is expected to gain 19.7%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Zacks Investment Research
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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/performance for information about the performance numbers displayed in this press release.