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Retail Sales Hit Seven-Month High in January: 4 Solid Picks
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The retail sector seems to have started 2021 on a high, with sales finally jumping after three straight months of decline. One of the primary reasons behind this jump has been the new round of fiscal stimulus. As the stimulus checks reached the households, people rushed to shop.
The retail sector had taken a bad hit last year after shops had to be closed down for weeks following the COVID-19 outbreak. Things started looking up but the fourth quarter once again saw the retail sector struggling as disposable cash dried up once the stimulus checks got exhausted. That said, January’s jump once again proves that the economy is getting back on its feet and the retail sector is on track for a fast recovery.
Retail Sales Jump in January
U.S. retail sales jumped a solid 5.3% in January on a month-over-month basis to hit a seven-month high, the Commerce Department said on Feb 17. In fact, retail sales had declined 1% in December despite the holiday season registering record sales last year.
Excluding autos, sales jumped 5.9%, beating analysts’ estimates of a meager 1% rise. The solid performance comes just a month after Congress approved a fiscal stimulus totaling $900 billion. The new round of stimulus comes on top of a whopping $2.2 trillion fiscal aid package approved in 2020 following the COVID-19 outbreak.
Needless to say, the fresh round of stimulus increased the purchasing power of shoppers by $600 each and they flocked to stores. Surprisingly, restaurants and bars, which had taken a massive hit due to the pandemic, too saw sales jumping 6.9% for the month.
Electronic Goods Drive Sales
January’s solid sales were driven by electronic and appliances sales, which have been high on demand throughout the pandemic. Sales of electronics and appliances rose 14.7% in January. Furniture and furnishing sales also increased an impressive 12%, driven by the boom in the homebuilding market. Sales of building material increased 19%, while sporting goods rose 22.5%.
E-commerce, which has been breathing life into the retail sector since the coronavirus outbreak, once again helped the sector. Online spending at non-store retailers rose 11%, as more people shopped sitting from their homes on fears of the virus. Overall, online sales surged 28.7%, registering the best performance since January 2020.
The rise in retail sales comes after a slight increase in consumer confidence in December 2020, which was due to the approval of the additional coronavirus aid package. Economists believe that the pace in shopping will pick up as the year progresses and more people get vaccinated.
Our Choices
The jump in retail sales in January once again signals a steady recovery. With the vaccination drive in full swing and the fresh round of stimulus checks now reaching millions of Americas, it is expected that people will once again go shopping. However, e-commerce will continue to play a dominant role. Given this situation, it might be prudent to invest in retail stocks that also have a strong online presence. We have shortlisted four stocks with a Zacks Rank #1 (Strong Buy) that are likely to bring sumptuous returns in the coming days.You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories.
The company’s expected earnings growth rate for the current year is 2.6%. The Zacks Consensus Estimate for current-year earnings has improved 21.2% over the past 60 days.
Ethan Allen Interiors Inc. is a leading interior design company, and a manufacturer and retailer of quality home furnishings. The company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of the Design Centers in the United States and abroad.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 44.4% over the past 60 days.
Tempur Sealy International, Inc. (TPX - Free Report) is involved in the development, manufacturing and marketing of bedding products primarily in North America and internationally. It provides mattresses, adjustable bases, pillows and other sleep and relaxation products.
The company’s expected earnings growth rate for the current year is 27.8%. The Zacks Consensus Estimate for current-year earnings has improved 23.2% over the past 60 days.
Hibbett Sports, Inc. (HIBB - Free Report) is a major athletic-inspired retailer, located in small and mid-sized markets across the country. The company operates predominantly in the South, Southwest, Mid-Atlantic and Midwest regions of the United States.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the past 60 days.
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 SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Retail Sales Hit Seven-Month High in January: 4 Solid Picks
The retail sector seems to have started 2021 on a high, with sales finally jumping after three straight months of decline. One of the primary reasons behind this jump has been the new round of fiscal stimulus. As the stimulus checks reached the households, people rushed to shop.
The retail sector had taken a bad hit last year after shops had to be closed down for weeks following the COVID-19 outbreak. Things started looking up but the fourth quarter once again saw the retail sector struggling as disposable cash dried up once the stimulus checks got exhausted. That said, January’s jump once again proves that the economy is getting back on its feet and the retail sector is on track for a fast recovery.
Retail Sales Jump in January
U.S. retail sales jumped a solid 5.3% in January on a month-over-month basis to hit a seven-month high, the Commerce Department said on Feb 17. In fact, retail sales had declined 1% in December despite the holiday season registering record sales last year.
Excluding autos, sales jumped 5.9%, beating analysts’ estimates of a meager 1% rise. The solid performance comes just a month after Congress approved a fiscal stimulus totaling $900 billion. The new round of stimulus comes on top of a whopping $2.2 trillion fiscal aid package approved in 2020 following the COVID-19 outbreak.
Needless to say, the fresh round of stimulus increased the purchasing power of shoppers by $600 each and they flocked to stores. Surprisingly, restaurants and bars, which had taken a massive hit due to the pandemic, too saw sales jumping 6.9% for the month.
Electronic Goods Drive Sales
January’s solid sales were driven by electronic and appliances sales, which have been high on demand throughout the pandemic. Sales of electronics and appliances rose 14.7% in January. Furniture and furnishing sales also increased an impressive 12%, driven by the boom in the homebuilding market. Sales of building material increased 19%, while sporting goods rose 22.5%.
E-commerce, which has been breathing life into the retail sector since the coronavirus outbreak, once again helped the sector. Online spending at non-store retailers rose 11%, as more people shopped sitting from their homes on fears of the virus. Overall, online sales surged 28.7%, registering the best performance since January 2020.
The rise in retail sales comes after a slight increase in consumer confidence in December 2020, which was due to the approval of the additional coronavirus aid package. Economists believe that the pace in shopping will pick up as the year progresses and more people get vaccinated.
Our Choices
The jump in retail sales in January once again signals a steady recovery. With the vaccination drive in full swing and the fresh round of stimulus checks now reaching millions of Americas, it is expected that people will once again go shopping. However, e-commerce will continue to play a dominant role. Given this situation, it might be prudent to invest in retail stocks that also have a strong online presence. We have shortlisted four stocks with a Zacks Rank #1 (Strong Buy) that are likely to bring sumptuous returns in the coming days.You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories.
The company’s expected earnings growth rate for the current year is 2.6%. The Zacks Consensus Estimate for current-year earnings has improved 21.2% over the past 60 days.
Ethan Allen Interiors Inc. is a leading interior design company, and a manufacturer and retailer of quality home furnishings. The company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of the Design Centers in the United States and abroad.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 44.4% over the past 60 days.
Tempur Sealy International, Inc. (TPX - Free Report) is involved in the development, manufacturing and marketing of bedding products primarily in North America and internationally. It provides mattresses, adjustable bases, pillows and other sleep and relaxation products.
The company’s expected earnings growth rate for the current year is 27.8%. The Zacks Consensus Estimate for current-year earnings has improved 23.2% over the past 60 days.
Hibbett Sports, Inc. (HIBB - Free Report) is a major athletic-inspired retailer, located in small and mid-sized markets across the country. The company operates predominantly in the South, Southwest, Mid-Atlantic and Midwest regions of the United States.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the past 60 days.
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 SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>