Retail sales in the United States rose 0.3% sequentially in January 2020, slightly higher than a downwardly revised 0.2% uptick in December and in line with market expectations. Sales rose 4.4% year over year in the month (see all consumer discretionary ETFs here).
Against this backdrop, we highlight a few ETFs and stocks that should win or lose from the January retail sales report (read: These 4 Sector ETFs Look Attractive in February).
Winners
Online Stores
Online and mail-order retail trade jumped 0.3% sequentially in January from a 0.1% drop in December.
eBay Inc. (EBAY - Free Report)
The Zacks Rank #2 (Buy) company is one of the largest online retailers in the world. It belongs to a favorable Zacks industry (placed at the top 45% of 250+ industries).
Amplify Online Retail ETF (IBUY - Free Report)
The underlying EQM Online Retail Index utilizes a rules-based methodology to select a globally diverse group of companies with 70% or more of online and virtual sales. The fund charges 65 bps in fees. Uber (3.49%), Grubhub (3.30%) and Netflix (3.12%) are the top three holdings of the fund.
Restaurants
Receipts at restaurants and bars grew 1.2%, almost same as the prior month. On a year-over-year basis, sales at food services & drinking places jumped 8.2% in January.
Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report)
The underlying Dynamic Leisure & Entertainment Intellidex Index is comprised of stocks of U.S. leisure and entertainment companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. The fund charges 63 bps in fees (read: 3 Sector ETFs & Stocks to Win on Upbeat January Jobs Data).
Brinker International Inc. (EAT - Free Report)
The Zacks Rank #2 (Buy) company primarily owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. It comes from a top-ranked Zacks industry (top 30%).
Loser
Apparel
Sales at clothing stores slumped the maximum since 2009 in January. Sales fell 3.1% sequentially in January.
SPDR S&P Retail ETF (XRT - Free Report)
The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. Apparel Retail takes about one-fourth of the fund. The fund has lost 2.3% in the past month.
American Eagle Outfitters Inc. (AEO - Free Report)
This is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. It has a Zacks Rank #4 (Sell).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Retail sales in the United States rose 0.3% sequentially in January 2020, slightly higher than a downwardly revised 0.2% uptick in December and in line with market expectations. Sales rose 4.4% year over year in the month (see all consumer discretionary ETFs here).
Against this backdrop, we highlight a few ETFs and stocks that should win or lose from the January retail sales report (read: These 4 Sector ETFs Look Attractive in February).
Winners
Online Stores
Online and mail-order retail trade jumped 0.3% sequentially in January from a 0.1% drop in December.
eBay Inc. (EBAY - Free Report)
The Zacks Rank #2 (Buy) company is one of the largest online retailers in the world. It belongs to a favorable Zacks industry (placed at the top 45% of 250+ industries).
Amplify Online Retail ETF (IBUY - Free Report)
The underlying EQM Online Retail Index utilizes a rules-based methodology to select a globally diverse group of companies with 70% or more of online and virtual sales. The fund charges 65 bps in fees. Uber (3.49%), Grubhub (3.30%) and Netflix (3.12%) are the top three holdings of the fund.
Restaurants
Receipts at restaurants and bars grew 1.2%, almost same as the prior month. On a year-over-year basis, sales at food services & drinking places jumped 8.2% in January.
Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report)
The underlying Dynamic Leisure & Entertainment Intellidex Index is comprised of stocks of U.S. leisure and entertainment companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. The fund charges 63 bps in fees (read: 3 Sector ETFs & Stocks to Win on Upbeat January Jobs Data).
Brinker International Inc. (EAT - Free Report)
The Zacks Rank #2 (Buy) company primarily owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. It comes from a top-ranked Zacks industry (top 30%).
Loser
Apparel
Sales at clothing stores slumped the maximum since 2009 in January. Sales fell 3.1% sequentially in January.
SPDR S&P Retail ETF (XRT - Free Report)
The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. Apparel Retail takes about one-fourth of the fund. The fund has lost 2.3% in the past month.
American Eagle Outfitters Inc. (AEO - Free Report)
This is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. It has a Zacks Rank #4 (Sell).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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