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Holiday Hiring to Hit 4-Year High: 5 Retail Stocks to Buy
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Holiday hiring in the United States would be the highest since 2014, per a recent report from leading global outplacement firm Challenger, Gray & Christmas Inc. The holiday season is considered one of the best times of the years by retailers. This has seen retailers go on a hiring spree ahead of holiday sales that should give sales a boost.
Understandably, with the economy flourishing and consumer confidence touching a two-decade high, an increasing number of Americans are willing to spend more during the holiday season. Per the National Retail Federation (NRF) retail sales during the holiday season are expected to reach around $721 billion. This certainly is a good sign for retailers. Given this scenario, investing in retail stocks looks like a profitable option.
Holiday Hiring to Touch 4-Year High
Per the report, retailers in the United States would be hiring 704,000 workers ahead of holiday season. This reflects an increase of 1.2% from the previous best figures in 2014. A large number of retailers such as Target Corporation (TGT), Macy’s, Inc. (M) and Amazon.com, Inc. (AMZN) are aggressively hiring ahead of the holiday season between Thanksgiving and Christmas.
The holiday season is typically viewed as one of the best times for retailers. Amazon expects to hire 100,000 workers, while Target has plans of adding seasonal hires by 20% to 120,000. Macy’s too is planning to employ 80,000 workers ahead of the holiday season.
That said, it is increasingly becoming difficult to find retail workers, with the unemployment level hitting record lows. This has also seen retailers like Amazon announcing a rise in minimum wages for its U.S. employees to $15 per hour. The hiring spree hints at the high confidence level of retailers, which are expecting higher sales this holiday season.
Holiday Retail Sales to Grow
Per the National Retail Federation, holiday sales will grow 4.3% to 4.8%, aided by a flourishing economy and high consumer confidence. Per the NRF, retail sales for November and December are projected to grow between $717.45 billion and $720.89 billion, excluding autos, gasoline and restaurant sales. In 2017, retail sales during the holiday season came in at $687.87 billion.
Moreover, the last two months, per NRF, could account for 20-40% of annual sales for many retailers. Also, on Oct 25, Moody’s Investor Service for the first time since July 2015 raised its outlook from stable to positive for the U.S. retail industry. Moody’s also said that it expects the retail sector to benefit the most from investing in e-commerce and operating efficiencies.
On Thursday, shares of major retailers rallied. Shares of Macy’s and Target gained 2.3% and 1.9% respectively. Shares of Kohl’s Corporation (KSS) increased 2.4%, while Nordstrom, Inc. (JWN) jumped 3.7%.
Our Choices
Understandably, an increasing number of retailers are aggressively hiring workers ahead of the holiday season. With the economy flourishing and consumer confidence at a two-decade high, retail sales are likely to get a boost this holiday season. This is why, picking retail stocks looks like a smart option now. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
RH (RH - Free Report) is a luxury brand in the home furnishings marketplace, offering product assortments across a number of categories.
RH has a Zacks Rank #1 and VGM Score of A. The company’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 14.7% in the last 60 days.
Tilly's, Inc. (TLYS - Free Report) is a specialty retailer in the action sports industry selling clothing, shoes and accessories.
Tilly's has a Zacks Rank #1 and VGM Score of A. The company’s projected growth rate for the current year is 38.5%. The Zacks Consensus Estimate for the current year has improved 11.1% in the last 60 days.
Movado Group, Inc. (MOV - Free Report) is one of the world's premier watchmakers. Movado Group designs, manufactures and distributes watches from 10 of the most recognized and respected names in time.
Movado has a Zacks Rank #1 and VGM Score of B. The company’s projected growth rate for the current year is 27%. The Zacks Consensus Estimate for the current year has improved 5.4% in the last 60 days.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories.
Boot Barn Holdings sports a Zacks Rank #1 and has a VGM Score of B. The company’s projected growth rate for the current year is 65.7%. The Zacks Consensus Estimate for the current year has improved 0.8% in the last 60 days.
Casey's General Stores, Inc. (CASY - Free Report) and its wholly owned subsidiaries operate convenience stores under the names Casey's and Casey's General Store.
Casey's General Stores has a Zacks Rank #2 and VGM Score of B. The company’s projected growth rate for the current year is 22.1%. The Zacks Consensus Estimate for the current year has improved 2% in the last 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Holiday Hiring to Hit 4-Year High: 5 Retail Stocks to Buy
Holiday hiring in the United States would be the highest since 2014, per a recent report from leading global outplacement firm Challenger, Gray & Christmas Inc. The holiday season is considered one of the best times of the years by retailers. This has seen retailers go on a hiring spree ahead of holiday sales that should give sales a boost.
Understandably, with the economy flourishing and consumer confidence touching a two-decade high, an increasing number of Americans are willing to spend more during the holiday season. Per the National Retail Federation (NRF) retail sales during the holiday season are expected to reach around $721 billion. This certainly is a good sign for retailers. Given this scenario, investing in retail stocks looks like a profitable option.
Holiday Hiring to Touch 4-Year High
Per the report, retailers in the United States would be hiring 704,000 workers ahead of holiday season. This reflects an increase of 1.2% from the previous best figures in 2014. A large number of retailers such as Target Corporation (TGT), Macy’s, Inc. (M) and Amazon.com, Inc. (AMZN) are aggressively hiring ahead of the holiday season between Thanksgiving and Christmas.
The holiday season is typically viewed as one of the best times for retailers. Amazon expects to hire 100,000 workers, while Target has plans of adding seasonal hires by 20% to 120,000. Macy’s too is planning to employ 80,000 workers ahead of the holiday season.
That said, it is increasingly becoming difficult to find retail workers, with the unemployment level hitting record lows. This has also seen retailers like Amazon announcing a rise in minimum wages for its U.S. employees to $15 per hour. The hiring spree hints at the high confidence level of retailers, which are expecting higher sales this holiday season.
Holiday Retail Sales to Grow
Per the National Retail Federation, holiday sales will grow 4.3% to 4.8%, aided by a flourishing economy and high consumer confidence. Per the NRF, retail sales for November and December are projected to grow between $717.45 billion and $720.89 billion, excluding autos, gasoline and restaurant sales. In 2017, retail sales during the holiday season came in at $687.87 billion.
Moreover, the last two months, per NRF, could account for 20-40% of annual sales for many retailers. Also, on Oct 25, Moody’s Investor Service for the first time since July 2015 raised its outlook from stable to positive for the U.S. retail industry. Moody’s also said that it expects the retail sector to benefit the most from investing in e-commerce and operating efficiencies.
On Thursday, shares of major retailers rallied. Shares of Macy’s and Target gained 2.3% and 1.9% respectively. Shares of Kohl’s Corporation (KSS) increased 2.4%, while Nordstrom, Inc. (JWN) jumped 3.7%.
Our Choices
Understandably, an increasing number of retailers are aggressively hiring workers ahead of the holiday season. With the economy flourishing and consumer confidence at a two-decade high, retail sales are likely to get a boost this holiday season. This is why, picking retail stocks looks like a smart option now. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a good VGM Score. You can see the complete list of today’s Zacks #1 Rank stocks here.
RH (RH - Free Report) is a luxury brand in the home furnishings marketplace, offering product assortments across a number of categories.
RH has a Zacks Rank #1 and VGM Score of A. The company’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 14.7% in the last 60 days.
Tilly's, Inc. (TLYS - Free Report) is a specialty retailer in the action sports industry selling clothing, shoes and accessories.
Tilly's has a Zacks Rank #1 and VGM Score of A. The company’s projected growth rate for the current year is 38.5%. The Zacks Consensus Estimate for the current year has improved 11.1% in the last 60 days.
Movado Group, Inc. (MOV - Free Report) is one of the world's premier watchmakers. Movado Group designs, manufactures and distributes watches from 10 of the most recognized and respected names in time.
Movado has a Zacks Rank #1 and VGM Score of B. The company’s projected growth rate for the current year is 27%. The Zacks Consensus Estimate for the current year has improved 5.4% in the last 60 days.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories.
Boot Barn Holdings sports a Zacks Rank #1 and has a VGM Score of B. The company’s projected growth rate for the current year is 65.7%. The Zacks Consensus Estimate for the current year has improved 0.8% in the last 60 days.
Casey's General Stores, Inc. (CASY - Free Report) and its wholly owned subsidiaries operate convenience stores under the names Casey's and Casey's General Store.
Casey's General Stores has a Zacks Rank #2 and VGM Score of B. The company’s projected growth rate for the current year is 22.1%. The Zacks Consensus Estimate for the current year has improved 2% in the last 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>