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Retailers Ring in a Prosperous Holiday Season: 4 Key Picks
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In a holiday season filled with festive spirit, retailers have reason to celebrate. December brought glad tidings for retailers as CNBC/NRF Retail Monitor numbers showed a robust holiday season. According to the National Retail Federation (“NRF”), the combined results of November and December indicate a triumphant two-month period for retailers. Matthew Shay, the president and CEO of NRF, emphasized the success, attributing it to retailers delivering what consumers desired in terms of options, timing and price.
The CNBC/NRF Retail Monitor reported that total retail sales, excluding automobiles and gasoline, rose 0.4% seasonally adjusted month over month and 3.1% unadjusted year over year in December. These figures, while slightly lower than November, signify a continued upward trend in consumer spending. November sales were up 0.8% month over month and 4.2% year over year.
Core retail sales, a crucial indicator excluding restaurants, autos and gas, showed a month-over-month increase of 0.2% and a year-over-year rise of 2.4% in December. The annual comparison reflects a slight dip from November's growth, suggesting a stabilizing trend in the market.
The Retail Monitor's detailed breakdown of December's retail categories highlights positive performance in six out of nine sectors on a yearly basis. Online sales, health and personal care stores, and clothing and accessory stores led the growth, with online sales skyrocketing by 31.2% year over year.
Despite a slight month-over-month dip of 0.4% in clothing and accessory stores, overall December sales remained strong, rising 4.3% year over year. Grocery and beverage stores also posted favorable results, increasing by 2.4% year over year. Sporting goods, hobby, music and bookstores also contributed to the positive trend, showcasing the diverse resilience of the retail sector, ascending 2.3%.
The significance of the holiday season for retailers cannot be overstated. This period marks a crucial juncture, often accounting for a substantial portion of annual sales. The influx of enthusiastic shoppers provides retailers with the opportunity to showcase their offerings, boost revenues and solidify brand loyalty. Retailers leverage this period to not only maximize sales but also leave an indelible impression on consumers. That said, we have highlighted four stocks from the sector that look well-positioned based on their sound fundamentals.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Hibbett, Inc. (HIBB - Free Report) is a potential pick. Hibbett boasts distinct competitive advantages, including superior customer service, a best-in-class omnichannel shopping experience, strong vendor relationships, strategic in-store placement and a presence in underserved markets. These advantages contribute to the company's ability to maintain and grow its market share. The company’s focus on improved expense management and disciplined inventory controls demonstrates a commitment to operational efficiency.
The Zacks Consensus Estimate for Hibbett’s current fiscal sales suggests growth of 1.7% from the year-ago reported figure. This Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 24.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon.com, Inc. (AMZN - Free Report) is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11.1% and 278.9%, respectively, from the year-ago reported figure. AMZN, which carries a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 54.9%, on average.
Target Corporation (TGT - Free Report) is also worth considering. This Minneapolis, MN-based company has been making multiple changes to its business model to adapt and stay relevant in the dynamic retail landscape. Target has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience. These have been contributing to the top line.
The Zacks Consensus Estimate for Target’s current financial-year EPS suggests growth of 38.5% from the year-ago reported figure. TGT, which carries a Zacks Rank #2, has a trailing four-quarter earnings surprise of 30.8%, on average.
Investors can count on Brinker International (EAT - Free Report) , one of the world's leading casual dining restaurant companies. Brinker International is unwavering in its commitment to enhancing customer engagement and boosting revenues through various sales-boosting strategies. These include optimizing the menu and fostering innovation, reinforcing its value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing an enhanced service platform.
The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5% and 26.2%, respectively, from the year-ago reported figure. EAT, which carries a Zacks Rank #2, has a trailing four-quarter earnings surprise of 223.6%, on average.
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Retailers Ring in a Prosperous Holiday Season: 4 Key Picks
In a holiday season filled with festive spirit, retailers have reason to celebrate. December brought glad tidings for retailers as CNBC/NRF Retail Monitor numbers showed a robust holiday season. According to the National Retail Federation (“NRF”), the combined results of November and December indicate a triumphant two-month period for retailers. Matthew Shay, the president and CEO of NRF, emphasized the success, attributing it to retailers delivering what consumers desired in terms of options, timing and price.
The CNBC/NRF Retail Monitor reported that total retail sales, excluding automobiles and gasoline, rose 0.4% seasonally adjusted month over month and 3.1% unadjusted year over year in December. These figures, while slightly lower than November, signify a continued upward trend in consumer spending. November sales were up 0.8% month over month and 4.2% year over year.
Core retail sales, a crucial indicator excluding restaurants, autos and gas, showed a month-over-month increase of 0.2% and a year-over-year rise of 2.4% in December. The annual comparison reflects a slight dip from November's growth, suggesting a stabilizing trend in the market.
The Retail Monitor's detailed breakdown of December's retail categories highlights positive performance in six out of nine sectors on a yearly basis. Online sales, health and personal care stores, and clothing and accessory stores led the growth, with online sales skyrocketing by 31.2% year over year.
Despite a slight month-over-month dip of 0.4% in clothing and accessory stores, overall December sales remained strong, rising 4.3% year over year. Grocery and beverage stores also posted favorable results, increasing by 2.4% year over year. Sporting goods, hobby, music and bookstores also contributed to the positive trend, showcasing the diverse resilience of the retail sector, ascending 2.3%.
The significance of the holiday season for retailers cannot be overstated. This period marks a crucial juncture, often accounting for a substantial portion of annual sales. The influx of enthusiastic shoppers provides retailers with the opportunity to showcase their offerings, boost revenues and solidify brand loyalty. Retailers leverage this period to not only maximize sales but also leave an indelible impression on consumers. That said, we have highlighted four stocks from the sector that look well-positioned based on their sound fundamentals.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Hibbett, Inc. (HIBB - Free Report) is a potential pick. Hibbett boasts distinct competitive advantages, including superior customer service, a best-in-class omnichannel shopping experience, strong vendor relationships, strategic in-store placement and a presence in underserved markets. These advantages contribute to the company's ability to maintain and grow its market share. The company’s focus on improved expense management and disciplined inventory controls demonstrates a commitment to operational efficiency.
The Zacks Consensus Estimate for Hibbett’s current fiscal sales suggests growth of 1.7% from the year-ago reported figure. This Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 24.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon.com, Inc. (AMZN - Free Report) is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11.1% and 278.9%, respectively, from the year-ago reported figure. AMZN, which carries a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 54.9%, on average.
Target Corporation (TGT - Free Report) is also worth considering. This Minneapolis, MN-based company has been making multiple changes to its business model to adapt and stay relevant in the dynamic retail landscape. Target has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience. These have been contributing to the top line.
The Zacks Consensus Estimate for Target’s current financial-year EPS suggests growth of 38.5% from the year-ago reported figure. TGT, which carries a Zacks Rank #2, has a trailing four-quarter earnings surprise of 30.8%, on average.
Investors can count on Brinker International (EAT - Free Report) , one of the world's leading casual dining restaurant companies. Brinker International is unwavering in its commitment to enhancing customer engagement and boosting revenues through various sales-boosting strategies. These include optimizing the menu and fostering innovation, reinforcing its value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing an enhanced service platform.
The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5% and 26.2%, respectively, from the year-ago reported figure. EAT, which carries a Zacks Rank #2, has a trailing four-quarter earnings surprise of 223.6%, on average.