We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The U.S. retail sector is trying to stage a solid comeback, with sales increasing in back-to-back months in May. E-commerce, which has played a major role in driving sales, rose once again in June. This comes as overall e-commerce retail sales showed a solid jump in the first quarter amid price challenges.
However, prices have started showing signs of cooling as data showed inflation eased in June. This is likely going to help the retail sector in the near term.
The Commerce Department said earlier this month that retail sales in the United States rose 0.3% in May, following an increase of 0.4% in April. This was also above analysts’ expectations of a decline of 0.1%.
Sales were once again driven by online purchases. E-commerce sales rose an impressive 0.3%. E-commerce has been one of the key factors in driving retail sales since the Covid-19 outbreak in 2020.
Millions shopped online as they stayed indoors for months. The trend has since been continuing as consumers finally realized the ease and convenience of shopping online.
This saw e-commerce sales hitting the $1 trillion mark for the first time in 2022. Although the first half of 2023 saw retailers struggling, e-commerce continued its dominance. According to the Commerce Department, e-commerce sales hit $253.1 billion in the first quarter.
This is 8% higher than the year-ago figures of $234.4 billion. E-commerce accounted for 21.7% of the total retail sales in the first quarter compared with 21.2% in the year-ago quarter, according to a Digital Commerce 360 report by the Commerce Department.
Our Choices
Given this scenario, it would be wise to invest in these four stocks with a strong online presence. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The TJX Companies, Inc. (TJX - Free Report) is a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.
The TJX Companies’ expected earnings growth rate for the current year is 14.5%. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the past 60 days. TJX presently has a Zacks Rank #2.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. URBN merchandises are generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. Urban Outfitters has operations in the United States, Canada and Europe.
Urban Outfitters’ expected earnings growth rate for the current year is 57.1%. The Zacks Consensus Estimate for current-year earnings has improved 10.4% over the past 60 days. URBN currently sports a Zacks Rank #1.
The Kraft Heinz Company (KHC - Free Report) is one of the largest consumer packaged food and beverage companies in North America. KHC manufactures and markets food and beverage products like condiments and sauces, cheese as well as dairy, meals, meats, refreshment beverages, coffee, and other grocery products.
The Kraft Heinz Company’s expected earnings growth rate for the current year is 3.6%. The Zacks Consensus Estimate for its current-year earnings has improved 6.3% over the past 60 days. Presently, KHC has a Zacks Rank #2.
Lamb Weston Holdings, Inc. (LW - Free Report) is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while it also operates internationally, with a robust and growing presence in emerging markets.
Lamb Weston’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current-year earnings has improved 0.2% over the past 60 days. LW currently has a Zacks Rank #1.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
4 Solid Stocks to Buy on Booming E-commerce Sales
The U.S. retail sector is trying to stage a solid comeback, with sales increasing in back-to-back months in May. E-commerce, which has played a major role in driving sales, rose once again in June. This comes as overall e-commerce retail sales showed a solid jump in the first quarter amid price challenges.
However, prices have started showing signs of cooling as data showed inflation eased in June. This is likely going to help the retail sector in the near term.
The Commerce Department said earlier this month that retail sales in the United States rose 0.3% in May, following an increase of 0.4% in April. This was also above analysts’ expectations of a decline of 0.1%.
Sales were once again driven by online purchases. E-commerce sales rose an impressive 0.3%. E-commerce has been one of the key factors in driving retail sales since the Covid-19 outbreak in 2020.
Millions shopped online as they stayed indoors for months. The trend has since been continuing as consumers finally realized the ease and convenience of shopping online.
This saw e-commerce sales hitting the $1 trillion mark for the first time in 2022. Although the first half of 2023 saw retailers struggling, e-commerce continued its dominance. According to the Commerce Department, e-commerce sales hit $253.1 billion in the first quarter.
This is 8% higher than the year-ago figures of $234.4 billion. E-commerce accounted for 21.7% of the total retail sales in the first quarter compared with 21.2% in the year-ago quarter, according to a Digital Commerce 360 report by the Commerce Department.
Our Choices
Given this scenario, it would be wise to invest in these four stocks with a strong online presence. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The TJX Companies, Inc. (TJX - Free Report) is a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.
The TJX Companies’ expected earnings growth rate for the current year is 14.5%. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the past 60 days. TJX presently has a Zacks Rank #2.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. URBN merchandises are generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. Urban Outfitters has operations in the United States, Canada and Europe.
Urban Outfitters’ expected earnings growth rate for the current year is 57.1%. The Zacks Consensus Estimate for current-year earnings has improved 10.4% over the past 60 days. URBN currently sports a Zacks Rank #1.
The Kraft Heinz Company (KHC - Free Report) is one of the largest consumer packaged food and beverage companies in North America. KHC manufactures and markets food and beverage products like condiments and sauces, cheese as well as dairy, meals, meats, refreshment beverages, coffee, and other grocery products.
The Kraft Heinz Company’s expected earnings growth rate for the current year is 3.6%. The Zacks Consensus Estimate for its current-year earnings has improved 6.3% over the past 60 days. Presently, KHC has a Zacks Rank #2.
Lamb Weston Holdings, Inc. (LW - Free Report) is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while it also operates internationally, with a robust and growing presence in emerging markets.
Lamb Weston’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current-year earnings has improved 0.2% over the past 60 days. LW currently has a Zacks Rank #1.