Back to top

Press Releases

Zacks Equity Research

The Zacks Analyst Blog Highlights: Children's Place, Best Buy, Burlington Stores, ULTA Salon, Cosmetics & Fragrance and Darden Restaurants

PLCE BBY BURL ULTA DRI

Trades from $3

For Immediate Release

Chicago, IL – October 19, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Children's Place, Inc. (NASDAQ:(PLCE - Free Report) –Free Report),Best Buy Co., Inc. (NYSE:(BBY - Free Report) –Free Report),Burlington Stores, Inc. (NYSE:(BURL - Free Report) –Free Report),ULTA Salon, Cosmetics & Fragrance, Inc. (NASDAQ:(ULTA - Free Report) –Free Report) and Darden Restaurants, Inc. (NYSE:(DRI - Free Report) – Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

5 Retail Stocks Gain Attention on Higher September Sales

The economy is dealing with various issues, including the upcoming Presidential election, the Fed’s pending decision over the rate hike, and other major events like the recent surge in the dollar and consensus to curtail oil production. While Wall Street is juggling with these events, the recent rebound in retail sales might give a reason to focus on the sector that will remain in the limelight for the remainder of the year.

U.S. retail sales rebounded sharply in September, up 0.6% – after a 0.2% decline in the month of August – buoyed by sturdy auto sales and rising gasoline prices, clearly indicating that the economy is gathering pace and setting the stage right for an upbeat holiday season. (Read: Retail Sales Up: Is the Economy Ready for a Rate Hike? )

Retail Sector in Focus

The recent rebound in oil prices, a favorable labor market, and a gradual improvement in the manufacturing sector and housing market are signals that the economy is in recovery mode, and undoubtedly the retail sector presents itself as a lucrative investment hub amid such a backdrop. These are playing key roles in raising buyers’ confidence, which improved significantly in September, reaching its pinnacle since the recession. We expect this positive sentiment to translate into higher consumer spending.

With the ability and willingness among consumers to spend more, retailers could hear their cash registers jingle this time. Data compiled by eMarketer suggests a 3.3% jump in holiday sales (November and December) to $884.5 billion. Retail eCommerce holiday season sales are anticipated to increase 17.2%, and would represent approximately 10.7% of total sales this season (or $94.71 billion).

Data compiled by the nation's largest retail trade group, National Retail Federation, projects a 3.6% jump in November and December sales (excluding autos, gas and restaurant sales) to $655.8 billion, which is far better than the 10-year average sales growth of 2.5%. Non-store sales for the season are expected to increase 7–10% to approximately $117 billion.

5 Prominent Picks

With the advent of the holiday season, the retail sector is likely to take the center stage. So, how about betting your bucks on lucrative options? Here we have highlighted five Retail/Wholesale stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of “A” or “B.”

We suggest investing in The Children's Place, Inc. (NASDAQ:(PLCE - Free Report) – Free Report), with a long-term earnings growth rate of 10.3% and a VGM Score of “A.” This specialty retailer of children's apparel delivered an average positive earnings surprise of 33.1% over the trailing four quarters, and flaunts a Zacks Rank #1. It is expected to witness earnings growth of 30.4% in fiscal 2016 and 9.9% in fiscal 2017.

Investors can count on Best Buy Co., Inc. (NYSE:(BBY - Free Report) – Free Report), a retailer of technology products, services, and solutions that posted an average positive earnings surprise of 22% over the trailing four quarters and has a VGM Score of “A.” The company is expected to witness earnings growth of 9.2% in fiscal 2017 and 4.9% in fiscal 2018. The stock has a long-term earnings growth rate of 10%, with a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here .

Burlington Stores, Inc. (NYSE:(BURL - Free Report) – Free Report), retailer of branded apparel products, is a solid bet, with a Zacks Rank #1 and a VGM Score of “A.” The company delivered an average positive earnings surprise of 16.1% over the trailing four quarters and has a long-term earnings growth rate of 18.4%. It is expected to witness earnings growth of 29.3% in fiscal 2016 and 19.2% in fiscal 2017.

Another stock that investors may consider is ULTA Salon, Cosmetics & Fragrance, Inc. (NASDAQ:(ULTA - Free Report) – Free Report), with a Zacks Rank #2, a long-term earnings growth rate of 19.5% and a VGM Score of “B.” The company delivered an average positive earnings surprise of 7.7% over the trailing four quarters. This specialty retailer of cosmetics, fragrance, haircare, skincare, bath and body products is expected to witness earnings growth of 27.8% in fiscal 2016 and 21.1% in fiscal 2017.

Last but not the least is Darden Restaurants, Inc. (NYSE:(DRI - Free Report) – Free Report), with a Zacks Rank #2, long-term earnings growth rate of 11.4% and a VGM Score of “A.” The company, which owns and operates full-service restaurants, posted an average positive earnings surprise of 9.3% over the trailing four quarters. It is expected to witness earnings growth of 10.9% in fiscal 2017 and 8.8% in fiscal 2018.

Confidential from Zacks

This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on PLCE - FREE

Get the full Report on BBY - FREE

Get the full Report on BURL - FREE

Get the full Report on ULTA - FREE

Get the full Report on DRI - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »