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Zacks Market Edge Highlights: Ollie's Bargain, Burlington, Lululemon, Ulta Beauty and DSW

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For Immediate Release

Chicago, IL – September 13, 2018 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/322606/should-you-buy-the-superstar-retail-stocks)

Should You Buy the Superstar Retail Stocks?

Welcome to Episode #146 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks editor and podcast host Maddy Johnson to discuss the best of the retailers.

With second quarter earnings season winding down, the verdict is in on the retail sector. The consumer is spending again, especially on apparel. Retail is hot again.

But there are the good retailers and there are the superstar retailers.

These 5 retailers are at the top of their games in 2018.

Should you be buying?

5 Superstar Retailers for Your Investor Short List

1.       Ollie’s Bargain Outlet (OLLI - Free Report) is a mid-cap retailer concentrated in the Midwest, the East Coast and the Southeast which specializes in selling liquidation, overstock and excess inventory items including bedding, apparel, toys and hunting equipment. It’s a rare retailer with NO online sales. Shares are up nearly 80% year-to-date but it has the highest P/E in this group. Are the good times going to continue?

2.       Burlington Stores (BURL - Free Report) disappointed on the comps in the second quarter, posting just 2.9% while competitors were between 5% and 7%. But shares are still up over 35% year-to-date and they saw trends improve into August. Earnings are expected to grow almost 42% in 2018 and another 15% in 2019. Is recent weakness in the shares a buying opportunity?

3.       Lululemon (LULU - Free Report) is back! After the PR disaster with the see-through yoga pants and changes in management, lululemon is again re-asserting itself as one of the premier specialty retail brands. Shares have soared 93% in 2018. Men’s sales made up 22% of second quarter total sales, highlighting the strong brand across both sexes. Will it be a challenger to Canada Goose this winter season in outerwear?

4.       Ulta Beauty (ULTA - Free Report) has struggled to find the next “big” thing over the last year as some of the hot trends in beauty cooled off. But on the second quarter conference call, the company revealed that it had entered a deal with Kylie Cosmetics for product during the holiday season. This was enough to push shares to new 52-week highs. With a forward P/E of 26, is Ulta one of the best retail growth stories?

5.       DSW came out of nowhere to post one of the best comps in the industry in the second quarter as comparable store sales rose 9.7% thanks to strength in sandals, athleisure and kids. This was its highest comparable since 2011. With a P/E of just 18.5, is DSW the biggest bargain in retail?

It’s not easy navigating consumer trends, competing against Amazon and Walmart, and coming through with unique products and experiences.

But these five companies are doing just that.

What else should you know about the retail industry in 2018?

Listen to today’s podcast to find out.

[In full disclosure, Tracey owns shares of ULTA in her personal portfolio.]

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