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5 Retail Stocks that Brokers Still Love Despite Brexit Jitters
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The historic decision that marked the exit of Great Britain from the European Union shook the financial world and rattled the stock markets globally. The U.S. markets too were punished, with the Dow Jones Industrial Average declining about 3.4% while the S&P 500 dropped approximately 3.6%. On the other hand, the tech-laden Nasdaq Composite Index plummeted roughly 4.1%. Market pundits believe that the ensuing market turmoil will take time to alleviate and could put a brake on the recovery of the economy.
The last time we saw a macroeconomic force unnerve the markets to this extent was when China devalued its yuan currency. It had taken the equity markets months to recover.
The overall commotion in the financial arena triggered by the Brexit vote also put pressure on oil price that retreated from its 10-month high. Currency markets too witnessed volatility following the referendum, with the pound losing its sheen drastically. Analysts pointed out that the market sentiment remains bleak and could also impact the Fed’s decision over a rate hike in the near term. The present economic scenario is definitely making things tough for investors to arrive at an investment decision.
Given the current macroeconomic conditions, betting your bucks on safer counters seems wise. It would be better to go ahead with stocks preferred by analysts who have a deep knowledge and understanding of the industry and its companies.
A favorable broker recommendation implies that the stock is fundamentally sound enough and possesses catalysts that may propel upward movement in the price once the market completely absorbs the seismic shock sparked by the Brexit.
Our Picks
Here we have highlighted five Retail-Wholesale Stocks that have a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or #2 (Buy) and have been given a Strong Buy/Buy rating by 80% or more brokers.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) , which owns and operates entertainment and dining venues, is a solid bet with a Zacks Rank #1. The company delivered an average positive earnings surprise of 104.8% over the trailing four quarters and has a long-term earnings growth rate of 19.2%. The Zacks Consensus Estimate too has moved up over the past 30 days.
Strong Buy or Buy broker rating: 100%.
Investors can also count on U.S. Auto Parts Network, Inc. (PRTS - Free Report) , which together with its subsidiaries, operates as an online retailer of aftermarket auto parts and accessories. The stock, which sports a Zacks Rank #1, has delivered an average positive earnings surprise of 62.5% over the trailing four quarters. Also, it has a long-term earnings growth rate of 15%.
Strong Buy or Buy broker rating: 100%.
Another stock that investors may look forward to is Carrols Restaurant Group, Inc. (TAST - Free Report) , which through its subsidiaries, operates franchisee restaurants of Burger King. It flaunts a Zacks Rank #1 and a long-term earnings growth rate of 20%. The company has registered positive earnings surprises over the trailing four quarters. The Zacks Consensus Estimate too has been rising over the past 60 days.
Strong Buy or Buy broker rating: 100%.
We also suggest investing in Burlington Stores, Inc. (BURL - Free Report) , which carries a Zacks Rank #2 and a long-term earnings growth rate of 17.7%. This retailer of branded apparel products delivered an average positive earnings surprise of 23.2% over the trailing four quarters. The Zacks Consensus Estimate also witnessed an uptrend over the past 60 days.
Strong Buy or Buy broker rating: 90.91%.
Last but not least is Nautilus Inc. with a Zacks Rank #2 and a long-term earnings growth rate of 10%. This designer, developer and marketer of cardio and strength fitness products and related accessories delivered an average positive earnings surprise of 7.1% over the trailing four quarters. The Zacks Consensus Estimate too has increased over the past 60 days.
Strong Buy or Buy broker rating: 100%.
A Final Word
While things are still largely uncertain, we have to move ahead with the knowledge that in the financial world, change is the only constant. Though the five stocks mentioned above are good bets, you can use the Zacks Stock Screener and permutation and combination to find out stocks that have the potential to beat the market.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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5 Retail Stocks that Brokers Still Love Despite Brexit Jitters
The historic decision that marked the exit of Great Britain from the European Union shook the financial world and rattled the stock markets globally. The U.S. markets too were punished, with the Dow Jones Industrial Average declining about 3.4% while the S&P 500 dropped approximately 3.6%. On the other hand, the tech-laden Nasdaq Composite Index plummeted roughly 4.1%. Market pundits believe that the ensuing market turmoil will take time to alleviate and could put a brake on the recovery of the economy.
The last time we saw a macroeconomic force unnerve the markets to this extent was when China devalued its yuan currency. It had taken the equity markets months to recover.
The overall commotion in the financial arena triggered by the Brexit vote also put pressure on oil price that retreated from its 10-month high. Currency markets too witnessed volatility following the referendum, with the pound losing its sheen drastically. Analysts pointed out that the market sentiment remains bleak and could also impact the Fed’s decision over a rate hike in the near term. The present economic scenario is definitely making things tough for investors to arrive at an investment decision.
Given the current macroeconomic conditions, betting your bucks on safer counters seems wise. It would be better to go ahead with stocks preferred by analysts who have a deep knowledge and understanding of the industry and its companies.
A favorable broker recommendation implies that the stock is fundamentally sound enough and possesses catalysts that may propel upward movement in the price once the market completely absorbs the seismic shock sparked by the Brexit.
Our Picks
Here we have highlighted five Retail-Wholesale Stocks that have a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or #2 (Buy) and have been given a Strong Buy/Buy rating by 80% or more brokers.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) , which owns and operates entertainment and dining venues, is a solid bet with a Zacks Rank #1. The company delivered an average positive earnings surprise of 104.8% over the trailing four quarters and has a long-term earnings growth rate of 19.2%. The Zacks Consensus Estimate too has moved up over the past 30 days.
Strong Buy or Buy broker rating: 100%.
Investors can also count on U.S. Auto Parts Network, Inc. (PRTS - Free Report) , which together with its subsidiaries, operates as an online retailer of aftermarket auto parts and accessories. The stock, which sports a Zacks Rank #1, has delivered an average positive earnings surprise of 62.5% over the trailing four quarters. Also, it has a long-term earnings growth rate of 15%.
Strong Buy or Buy broker rating: 100%.
Another stock that investors may look forward to is Carrols Restaurant Group, Inc. (TAST - Free Report) , which through its subsidiaries, operates franchisee restaurants of Burger King. It flaunts a Zacks Rank #1 and a long-term earnings growth rate of 20%. The company has registered positive earnings surprises over the trailing four quarters. The Zacks Consensus Estimate too has been rising over the past 60 days.
Strong Buy or Buy broker rating: 100%.
We also suggest investing in Burlington Stores, Inc. (BURL - Free Report) , which carries a Zacks Rank #2 and a long-term earnings growth rate of 17.7%. This retailer of branded apparel products delivered an average positive earnings surprise of 23.2% over the trailing four quarters. The Zacks Consensus Estimate also witnessed an uptrend over the past 60 days.
Strong Buy or Buy broker rating: 90.91%.
Last but not least is Nautilus Inc. with a Zacks Rank #2 and a long-term earnings growth rate of 10%. This designer, developer and marketer of cardio and strength fitness products and related accessories delivered an average positive earnings surprise of 7.1% over the trailing four quarters. The Zacks Consensus Estimate too has increased over the past 60 days.
Strong Buy or Buy broker rating: 100%.
A Final Word
While things are still largely uncertain, we have to move ahead with the knowledge that in the financial world, change is the only constant. Though the five stocks mentioned above are good bets, you can use the Zacks Stock Screener and permutation and combination to find out stocks that have the potential to beat the market.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>