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3 Strong Retail Stocks to Consider Buying Before Earnings

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On today’s episode of Full Court Finance at Zacks, we take a look at the broader earnings picture ahead of another busy week on Wall Street. The episode then dives into three retail stocks that report their quarterly financial results later this week and might be worth buying as longer-term bets.

Stocks jumped once again on Monday after the S&P 500 posted its strongest week since November last week. Wall Street continues to price in that the U.S. government will roll out more economic stimulus. Meanwhile, investors have clearly started to appreciate how strong earnings results have been.

All of the big tech giants, from Apple (AAPL - Free Report) to Amazon (AMZN - Free Report) , crushed their quarterly results and flexed their growth muscles during what is still a tough economic environment for many. Other economic bellwethers outside of tech have also posted better-than-projected results and provided encouraging guidance (also read: Q4 Earnings Growth Turns Positive).

This brings us to the three retail stocks that all report later this week. The first up is speaker giant Sonos (SONO - Free Report) that has grown within a crowded market. The company is also expanding beyond its device business with a premium streaming music service that hopes to compete against Spotify (SPOT - Free Report) and others. Sonos shares have surged to new records, yet at around $30 they might be considered “cheap” by some.

Yeti (YETI - Free Report) stock has also soared over the last year as it expands its portfolio far beyond expensive coolers and is part of a group of higher-end retail brands such as Lululemon (LULU - Free Report) and Peloton (PTON - Free Report) that have continued to grow.

Meanwhile, Tempur Sealy (TPX - Free Report) has ramped up its digital and direct-to-consumer business to better compete against digital-focused newcomers and bed-in-a-box firms like Casper (CSPR - Free Report) . All three stocks also stand to benefit from home improvement/upgrade-based spending.  

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