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4 Retail Stocks to Grab on Robust Holiday Sales Growth Projection
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Key Takeaways
AMZN is featured among four retail picks poised to benefit from robust holiday shopping.
EXPE has seen its earnings estimate rise over 60 days amid strong holiday spending projections.
BOOT shows improved earnings estimates as online sales are expected to fuel holiday growth.
The U.S. holiday season has begun, with this week set to witness the biggest shopping days of the year. Although inflationary pressures have been weighing on consumer spending for some time, the holiday season is expected to see robust spending, particularly from Thanksgiving Day through Cyber Monday.
Online sales are also projected to grow at a brisk pace. Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected four stocks, namely, Amazon.com, Inc. (AMZN - Free Report) , Expedia Group, Inc. (EXPE - Free Report) , Boot Barn Holdings, Inc. (BOOT - Free Report) and Tapestry (TPR - Free Report) for investors.
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Holiday Sales to Jump
U.S. holiday season sales, which typically fall between Nov. 1 and Dec. 31, are projected to hit $253.4 billion this year, increasing a solid 5.3% year over year, according to Adobe’s online shopping forecast. Shoppers are projected to spend more than $5 billion in a single day for at least 10 days.
The Cyber week, the five-day shopping period, which includes Thanksgiving Day, Black Friday and Cyber Monday, is expected to see spending hit $43.7 billion, which amounts to 17.2% of the overall holiday season sales. This is up 6.3% from the previous year, according to the survey.
Thanksgiving Day sales are expected to hit $6.4 billion. Cyber Monday will generate the maximum sales this year, hitting $14.2 billion, up 6.3% from year-ago levels. Sales will grow 8.3% on Black Friday, up 11.7% year over year. Mobiles and online platforms are projected to account for 56.1% of the overall holiday season sales this year.
Retailers have struggled for most of the year as inflation remains high. Higher prices have seen consumers spending cautiously. However, they are still banking on the holiday season to see sales surge.
4 Retail Stocks With Upside
Amazon.com, Inc.
Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN’s online retail business revolves around the Prime program, well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.
Amazon.com has an expected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the last 60 days. AMZN presently carries a Zacks Rank #2.
Expedia Group
Expedia Group, Inc. is an online travel company that empowers business and leisure travelers through technology, with the tools & information they need to efficiently research, plan, book and experience travel. EXPE has travel brands, including majority-owned subsidiaries that feature the world's broadest supply portfolio with more than a million online bookable vacation rental listings in many countries, over many airlines, packages, rental cars, cruises, destination services and activities.
Expedia’s expected earnings growth rate for next year is 24.6%. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the past 60 days. EXPE presently sports a Zacks Rank #1. (Zacks Rank 1 promo)
Boot Barn Holdings, Inc.
Boot Barn Holdings, Inc. operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. BOOT’s products include boots, denim, western shirts, cowboy hats, belts and belt buckles, and western-style jewelry and accessories. Boot Barn sells its products through bootbarn.com, an e-commerce Website.
Boot Barn Holdings’ expected earnings growth rate for the current year is 20.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the past 60 days. Boot Barn Holdings currently has a Zacks Rank #2.
Tapestry
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.
Tapestry’sexpected earnings growth rate for the current year is 10.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. TPR presently carries a Zacks Rank #2.
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4 Retail Stocks to Grab on Robust Holiday Sales Growth Projection
Key Takeaways
The U.S. holiday season has begun, with this week set to witness the biggest shopping days of the year. Although inflationary pressures have been weighing on consumer spending for some time, the holiday season is expected to see robust spending, particularly from Thanksgiving Day through Cyber Monday.
Online sales are also projected to grow at a brisk pace. Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected four stocks, namely, Amazon.com, Inc. (AMZN - Free Report) , Expedia Group, Inc. (EXPE - Free Report) , Boot Barn Holdings, Inc. (BOOT - Free Report) and Tapestry (TPR - Free Report) for investors.
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Holiday Sales to Jump
U.S. holiday season sales, which typically fall between Nov. 1 and Dec. 31, are projected to hit $253.4 billion this year, increasing a solid 5.3% year over year, according to Adobe’s online shopping forecast. Shoppers are projected to spend more than $5 billion in a single day for at least 10 days.
The Cyber week, the five-day shopping period, which includes Thanksgiving Day, Black Friday and Cyber Monday, is expected to see spending hit $43.7 billion, which amounts to 17.2% of the overall holiday season sales. This is up 6.3% from the previous year, according to the survey.
Thanksgiving Day sales are expected to hit $6.4 billion. Cyber Monday will generate the maximum sales this year, hitting $14.2 billion, up 6.3% from year-ago levels. Sales will grow 8.3% on Black Friday, up 11.7% year over year. Mobiles and online platforms are projected to account for 56.1% of the overall holiday season sales this year.
Retailers have struggled for most of the year as inflation remains high. Higher prices have seen consumers spending cautiously. However, they are still banking on the holiday season to see sales surge.
4 Retail Stocks With Upside
Amazon.com, Inc.
Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN’s online retail business revolves around the Prime program, well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.
Amazon.com has an expected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the last 60 days. AMZN presently carries a Zacks Rank #2.
Expedia Group
Expedia Group, Inc. is an online travel company that empowers business and leisure travelers through technology, with the tools & information they need to efficiently research, plan, book and experience travel. EXPE has travel brands, including majority-owned subsidiaries that feature the world's broadest supply portfolio with more than a million online bookable vacation rental listings in many countries, over many airlines, packages, rental cars, cruises, destination services and activities.
Expedia’s expected earnings growth rate for next year is 24.6%. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the past 60 days. EXPE presently sports a Zacks Rank #1. (Zacks Rank 1 promo)
Boot Barn Holdings, Inc.
Boot Barn Holdings, Inc. operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. BOOT’s products include boots, denim, western shirts, cowboy hats, belts and belt buckles, and western-style jewelry and accessories. Boot Barn sells its products through bootbarn.com, an e-commerce Website.
Boot Barn Holdings’ expected earnings growth rate for the current year is 20.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the past 60 days. Boot Barn Holdings currently has a Zacks Rank #2.
Tapestry
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.
Tapestry’sexpected earnings growth rate for the current year is 10.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. TPR presently carries a Zacks Rank #2.