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ETF & Stock Picks to Bet on Upbeat Retail Sales in November

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After gaining 1.1% in October, U.S. retail sales registered a 0.2% sequential rise in November. The reading was in line with analysts’ expectation. Per some economists, while tailwinds from the tax cuts are over, a sharp decline in retail gas prices has been driving retail sales in the ongoing holiday season (read: Top ETF Deals for This Holiday Season).

Barring automobiles, gasoline, building materials and food services, retail sales grew 0.9% in November, following an upwardly revised 0.7% increase in October. Core sales have grown over the past two months at the fastest clip in two years. On a year-over-year basis, retail sales increased 4.2% in November compared with a 4.8% rise in October.

Nine out of the 13 major retail categories exhibited a rise in sales in November from the previous month, as per tradingeconomics. Sales at furniture stores, health and personal care stores and online retailing were among the key drivers.

Sales also saw an improvement in areas like motor vehicle & parts dealers (up 0.2%). food & beverage stores (0.4%), hobby, musical instrument and book stores (0.4%), general merchandise stores (0.4%), and miscellaneous store retailers (0.4%).

Against this backdrop, we recommend a few ETFs and stocks that can be solid picks in November.

Stocks and ETFs in Focus

Furniture & Home Furniture Stores

Sales at furniture & home furniture stores recoiled 1.2% versus 0.5% decline in October.

La-Z-Boy Incorporated (LZB - Free Report)

The Zacks Rank #2 (Buy) company is one of the world's leading residential furniture producers. The stock has a VGM Score of A.

SPDR S&P Retail ETF (XRT - Free Report)

This retail ETF puts 5.31% in Department Stores and 3.7% in Hypermarkets & Super Centers.

Electronics & Appliance Stores

Sales at electronics & appliance stores grew 1.4% versus 1.7% nudge-up in October.

Garmin Ltd. (GRMN - Free Report)

It is an American multinational technology company. It has a Zacks Rank #2.

VanEck Vectors Semiconductor ETF (SMH - Free Report)

The fund tracks the overall performance of companies involved in semiconductor production and equipment.

Online Stores

Though brick-and-mortar retailers have been steady in recent times, the appeal of online retailing has been high. Online and mail-order retail sales soared 2.3%, marking the the biggest increase in a year, after a 0.8% rise in October.

Stamps.com Inc.

It is a leading provider of Internet-based postage services. The stock has a Zacks Rank #2.

ProShares Long Online/Short Stores ETF (CLIX - Free Report)

The underlying index of the fund consists of long positions in online retailers included on the ProShares Online Retail Index and short positions in the bricks and mortar retailers included on the Solactive-ProShares Bricks and Mortar Retail Store Index (read: Holiday Season 2018 Should Make This ETF Jump in Joy).

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