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The retail industry has been one of the surprise stars of second-quarter earnings season, with tons of companies reporting strong financial results on the back of soaring consumer confidence. But now that earnings season is winding down, let’s take a look at three strong buy retail stocks poised to keep growing.
Retailers, including Kohl’s (KSS - Free Report) , TJX (TJX - Free Report) , Nordstrom (JWN - Free Report) , and many others posted impressive quarterly earnings results over the last few weeks. Meanwhile, retails powerhouses Walmart (WMT - Free Report) , Target (TGT - Free Report) , and Home Depot (HD - Free Report) also posted stellar quarterly earnings. In fact, Target and Walmart both saw their strongest quarterly comps growth in over a decade.
These performances helped to prove that traditional retail is far from dead, despite speculation to the contrary. Companies have been able to adapt in the e-commerce age and have been boosted by a booming U.S. economy. With that said, we’re going to dive into why three retail-focused stocks appear to be strong buys at the moment.
Callaway Golf Company
Shares of Callaway have skyrocketed around 71% over the last 12 months, which outpaces its consumer discretionary market’s 4% gain and the S&P 500’s 18% jump. Yet, a recent dip has ELY stock sitting below its 52-week high. Despite these outsized gains, ELY is currently trading at 22.2X forward 12-month Zacks Consensus EPS estimates, which falls just below its industry’s average. Plus, Callaway’s valuation picture looks even stronger since it is currently trading well below its three-year median of 28.5X and right near its 36-month low.
Looking ahead, Callaway is projected to see its full-year revenues jump by nearly 17% to hit $1.23 billion, based on our current Zacks Consensus Estimates. Meanwhile, the golf equipment giant is expected to see its adjusted fiscal year earnings soar by 88.7% to $1.00 per share.
Lastly, Callaway has received 10 upward earnings estimate revisions over the last 30 days for its current full year and the following year, against zero downward changes. ELY’s strong upward earnings estimate revisions trend helps it land its Zack Rank #1 (Strong Buy).
At this point, many investors know about Amazon’s insane growth. But, the conglomerate with an e-commerce core doesn’t look like it is ready to slow down anytime soon. The company has expanded into the medical and pharmaceutical world, while also maintaining its tight grip on the clouding computing industry. And let’s not forget that Amazon Prime, which now boasts over 100 million subscribers, not only helped its net product sales hit $31.86 billion in Q2 (60% of total revenues) it has helped it become a long-term competitor to Netflix (NFLX - Free Report) and Hulu.
Jeff Bezos’ company is projected to post third-quarter revenues of $56.91 billion, which would represent a 30% surge, with its top line expected to climb by 32% in fiscal 2018. At the opposite end of the income statement, Amazon’s adjusted Q3 earnings are projected to skyrocket from $0.52 per share in the year-ago quarter to $3.21 per share, while full-year earnings are expected to soar over 279%.
Plus, Amazon has earned 18 earnings estimate revisions with 100% agreement to the upside over the last 30 days, for both its current year and fiscal 2019. Amazon is currently a Zacks Rank #1 (Strong Buy) and rocks an “A” grade for Growth in our Style Scores system.
Boot Barn operates roughly 210 stores in 29 states that specialize in western and work-related footwear, apparel, and accessories. Shares of BOOT are up roughly 30% over the last three years, lagging the industry and the S&P. But, over the last 12 months, Boot Barn has seen its stock price skyrocket over 237%. Somewhat obviously, BOOT’s strong performance has its stock price resting near its 52-week high. Luckily, the company looks poised to continue to expand both its top and bottom lines.
Boot Barn’s current quarter revenues are projected to climb by nearly 13% to hit $161.55 million. The small-cap star’s top line is expected to hit $757.54 million for the full year, which would represent nearly 12% growth. More impressively and maybe more importantly, Boot Barn’s current quarter earnings are projected to surge 125% to touch $0.09 per share. For the full-year, BOOT’s EPS figure is expected to reach $1.15 per share, which would mark a 64.3% climb.
The retailer has also seen a ton of positive earnings estimate revisions for the quarter, along with its current year and the following year, against no downward revisions. Boot Barn is currently a Zacks Rank #1 (Strong Buy) and sports an “A” grade for Growth in our Style Scores system.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
3 Retail Stocks to Buy Right Now
The retail industry has been one of the surprise stars of second-quarter earnings season, with tons of companies reporting strong financial results on the back of soaring consumer confidence. But now that earnings season is winding down, let’s take a look at three strong buy retail stocks poised to keep growing.
Retailers, including Kohl’s (KSS - Free Report) , TJX (TJX - Free Report) , Nordstrom (JWN - Free Report) , and many others posted impressive quarterly earnings results over the last few weeks. Meanwhile, retails powerhouses Walmart (WMT - Free Report) , Target (TGT - Free Report) , and Home Depot (HD - Free Report) also posted stellar quarterly earnings. In fact, Target and Walmart both saw their strongest quarterly comps growth in over a decade.
These performances helped to prove that traditional retail is far from dead, despite speculation to the contrary. Companies have been able to adapt in the e-commerce age and have been boosted by a booming U.S. economy. With that said, we’re going to dive into why three retail-focused stocks appear to be strong buys at the moment.
Callaway Golf Company
Shares of Callaway have skyrocketed around 71% over the last 12 months, which outpaces its consumer discretionary market’s 4% gain and the S&P 500’s 18% jump. Yet, a recent dip has ELY stock sitting below its 52-week high. Despite these outsized gains, ELY is currently trading at 22.2X forward 12-month Zacks Consensus EPS estimates, which falls just below its industry’s average. Plus, Callaway’s valuation picture looks even stronger since it is currently trading well below its three-year median of 28.5X and right near its 36-month low.
Looking ahead, Callaway is projected to see its full-year revenues jump by nearly 17% to hit $1.23 billion, based on our current Zacks Consensus Estimates. Meanwhile, the golf equipment giant is expected to see its adjusted fiscal year earnings soar by 88.7% to $1.00 per share.
Lastly, Callaway has received 10 upward earnings estimate revisions over the last 30 days for its current full year and the following year, against zero downward changes. ELY’s strong upward earnings estimate revisions trend helps it land its Zack Rank #1 (Strong Buy).
Amazon (AMZN - Free Report)
At this point, many investors know about Amazon’s insane growth. But, the conglomerate with an e-commerce core doesn’t look like it is ready to slow down anytime soon. The company has expanded into the medical and pharmaceutical world, while also maintaining its tight grip on the clouding computing industry. And let’s not forget that Amazon Prime, which now boasts over 100 million subscribers, not only helped its net product sales hit $31.86 billion in Q2 (60% of total revenues) it has helped it become a long-term competitor to Netflix (NFLX - Free Report) and Hulu.
Jeff Bezos’ company is projected to post third-quarter revenues of $56.91 billion, which would represent a 30% surge, with its top line expected to climb by 32% in fiscal 2018. At the opposite end of the income statement, Amazon’s adjusted Q3 earnings are projected to skyrocket from $0.52 per share in the year-ago quarter to $3.21 per share, while full-year earnings are expected to soar over 279%.
Plus, Amazon has earned 18 earnings estimate revisions with 100% agreement to the upside over the last 30 days, for both its current year and fiscal 2019. Amazon is currently a Zacks Rank #1 (Strong Buy) and rocks an “A” grade for Growth in our Style Scores system.
Boot Barn (BOOT - Free Report)
Boot Barn operates roughly 210 stores in 29 states that specialize in western and work-related footwear, apparel, and accessories. Shares of BOOT are up roughly 30% over the last three years, lagging the industry and the S&P. But, over the last 12 months, Boot Barn has seen its stock price skyrocket over 237%. Somewhat obviously, BOOT’s strong performance has its stock price resting near its 52-week high. Luckily, the company looks poised to continue to expand both its top and bottom lines.
Boot Barn’s current quarter revenues are projected to climb by nearly 13% to hit $161.55 million. The small-cap star’s top line is expected to hit $757.54 million for the full year, which would represent nearly 12% growth. More impressively and maybe more importantly, Boot Barn’s current quarter earnings are projected to surge 125% to touch $0.09 per share. For the full-year, BOOT’s EPS figure is expected to reach $1.15 per share, which would mark a 64.3% climb.
The retailer has also seen a ton of positive earnings estimate revisions for the quarter, along with its current year and the following year, against no downward revisions. Boot Barn is currently a Zacks Rank #1 (Strong Buy) and sports an “A” grade for Growth in our Style Scores system.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>