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4 Retail Stocks to Put in Your Christmas Hamper

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With Christmas just a couple of weeks away, bargain hunters are on the prowl again. And to make things merrier for investors, we have come up with four favorably ranked Retail-Wholesale stocks.

Retail Seems to be in Season’s Demand

Improving labor market, rising disposable income and perked up consumer sentiment have ignited hopes of a robust holiday season for retailers. As the season accounts for a sizeable chunk of yearly revenues and profits, retail bellwethers are going the extra mile, be it through early-hour store openings, huge discounts, promotional strategies and free shipping on online purchases.

Retailers are deploying resources to enhance omni-channel capacities, introducing brands, remodeling or refurbishing stores and expanding same-day delivery options to expedite the shopping process during the busiest part of the year. Additionally, retailers are rationalizing supply chain, improving store-related technology and augmenting ship-from-store capabilities.

Overall, the National Retail Federation anticipates a rise of 4.3-4.8% in November and December sales (excluding autos, gas and restaurant) to $717.45-$720.89 billion. Data compiled by eMarketer suggests brick-and-mortar sales rise of 4.4% to $878.38 billion with retail e-commerce holiday season sales anticipated to increase 16.6% to $123.73 billion.

So, start filling your holiday hampers with stocks that have a fair chance to outperform. Indeed, shopping season is likely to be more blissful for retailers with Christmas falling on Tuesday, 32 days after Thanksgiving. Here we have highlighted four Retail-Wholesale stocks with a favorable combination of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B.

4 Tempting Picks

Fossil Group, Inc. (FOSL - Free Report) , which designs, develops, markets and distributes consumer fashion accessories, is a solid bet with a VGM Score of B. The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters. Moreover, this Zacks Rank #1 stock has more than doubled in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

RH (RH - Free Report) , a home furnishing retailer, is another lucrative option. The stock has a long-term earnings growth rate of 21.9% and a VGM Score of A. We note that in a year, the stock has soared about 34%. The company has delivered an average positive earnings surprise of 23.5% in the trailing four quarters and sports a Zacks Rank #1.

Investors can count on BJ's Restaurants, Inc. (BJRI - Free Report) , whose shares have increased roughly 45% in a year. This operator of casual dining restaurants has delivered an average positive earnings surprise of 33.2% in the trailing four quarters. This Zacks Rank #2 company has a long-term earnings growth rate of 14.5% and a VGM Score of B.

We also suggest investing in Advance Auto Parts, Inc. (AAP - Free Report) , which has a long-term earnings growth rate of 12.1% and a VGM Score of A. In a year, this Zacks Rank #2 stock has surged roughly 62%. Moreover, this provider of automotive replacement parts, batteries and accessories has an average positive earnings surprise of 9.5% for the preceding four quarters.

In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?

These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>

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