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5 Stocks to Buy as Retail Sales Soar Amid Ongoing Geopolitical Tensions
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Key Takeaways
Retail sales jumped 1.7% in March, topping estimates, with strong gains across multiple categories.
Rising oil prices and inflation drove a 15.5% surge in gasoline station receipts, boosting totals.
FIVE, JD, TPR, LEVI, CASY stand out with solid earnings growth and improving estimates.
Retail sales rose in March, surpassing expectations as the ongoing conflict with Iran saw gasoline prices climb more than 30% over the past month. Although oil prices played a major role in boosting retail sales in March, the overall sector performed well.
The retail sector has put up a great show despite facing inflationary and tariff challenges. Sales have been on the rise this year, and the sector is poised to grow in the near term. It would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Five Below, Inc. (FIVE - Free Report) , JD.com, Inc. (JD - Free Report) , Tapestry (TPR - Free Report) , Levi Strauss & Co. (LEVI - Free Report) and Casey's General Stores, Inc. (CASY - Free Report) .
Retail Sales Soar
Retail sales jumped 1.7% in March, the highest level in the past 12 months, after rising 0.7% in February. The jump was higher than the consensus estimate of a rise of 1.4%. The jump was expected, given that the U.S.-Iran war saw oil prices rise sharply over the past month.
Year over year, retail sales jumped 4% in March, surpassing the consensus estimate of a rise of just 0.7%.
Global oil prices have surged over 30% since the start of the war, while inflation soared to its highest level in nearly a year, with the consumer price index (CPI) rising 0.9% sequentially in March. This saw a 15.5% surge in receipts at gasoline stations.
However, consumers continued to spend even then. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.7% in March. Sales at auto dealerships climbed 0.5% in March, while sales at electronics and appliance retailers rose 0.9%. Sales at furniture stores jumped 2.2%.
Online sales jumped 1%, while sales at restaurants and drinking places increased 0.1% in March. Higher demand and continued spending are boosting retail sales, and the sector is not only holding its ground but also preparing for growth in the near term.
5 Retail Stocks With Upside
Five Below, Inc
Five Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below’s expected earnings growth rate for the current year is 20.2%. The Zacks Consensus Estimate for current-year earnings has improved 15.4% over the past 60 days. FIVE presently carries a Zacks Rank #1.
JD.com
JD.com operates as an online direct sales company in China. JD, through its website www.jd.com and mobile applications, offers a selection of authentic products.
JD.com’s expected earnings growth rate for the current year is 19.2%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. JD 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’s expected earnings growth rate for the current year is 26.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.9% over the past 60 days. TPR presently carries a Zacks Rank #2.
Levi Strauss & Co.
Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores, and shop-in-shops. Levi Strauss & Co. is based in San Francisco.
Levi Strauss & Co.’s expected earnings growth rate for the current year is 11.9%. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the past 60 days. LEVI carries a Zacks Rank #2.
Casey's General Stores
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. In addition to fuel, the stores provide a wide variety of merchandise, including groceries, prepared food, snacks, beverages, tobacco products, health and beauty aids, school supplies, housewares, pet supplies and automotive supplies.
Casey’s has an expected earnings growth rate of 23.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 60 days. CASY currently has a Zacks Rank #2.
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5 Stocks to Buy as Retail Sales Soar Amid Ongoing Geopolitical Tensions
Key Takeaways
Retail sales rose in March, surpassing expectations as the ongoing conflict with Iran saw gasoline prices climb more than 30% over the past month. Although oil prices played a major role in boosting retail sales in March, the overall sector performed well.
The retail sector has put up a great show despite facing inflationary and tariff challenges. Sales have been on the rise this year, and the sector is poised to grow in the near term. It would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Five Below, Inc. (FIVE - Free Report) , JD.com, Inc. (JD - Free Report) , Tapestry (TPR - Free Report) , Levi Strauss & Co. (LEVI - Free Report) and Casey's General Stores, Inc. (CASY - Free Report) .
Retail Sales Soar
Retail sales jumped 1.7% in March, the highest level in the past 12 months, after rising 0.7% in February. The jump was higher than the consensus estimate of a rise of 1.4%. The jump was expected, given that the U.S.-Iran war saw oil prices rise sharply over the past month.
Year over year, retail sales jumped 4% in March, surpassing the consensus estimate of a rise of just 0.7%.
Global oil prices have surged over 30% since the start of the war, while inflation soared to its highest level in nearly a year, with the consumer price index (CPI) rising 0.9% sequentially in March. This saw a 15.5% surge in receipts at gasoline stations.
However, consumers continued to spend even then. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.7% in March. Sales at auto dealerships climbed 0.5% in March, while sales at electronics and appliance retailers rose 0.9%. Sales at furniture stores jumped 2.2%.
Online sales jumped 1%, while sales at restaurants and drinking places increased 0.1% in March. Higher demand and continued spending are boosting retail sales, and the sector is not only holding its ground but also preparing for growth in the near term.
5 Retail Stocks With Upside
Five Below, Inc
Five Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below’s expected earnings growth rate for the current year is 20.2%. The Zacks Consensus Estimate for current-year earnings has improved 15.4% over the past 60 days. FIVE presently carries a Zacks Rank #1.
JD.com
JD.com operates as an online direct sales company in China. JD, through its website www.jd.com and mobile applications, offers a selection of authentic products.
JD.com’s expected earnings growth rate for the current year is 19.2%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 60 days. JD 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’s expected earnings growth rate for the current year is 26.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.9% over the past 60 days. TPR presently carries a Zacks Rank #2.
Levi Strauss & Co.
Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores, and shop-in-shops. Levi Strauss & Co. is based in San Francisco.
Levi Strauss & Co.’s expected earnings growth rate for the current year is 11.9%. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the past 60 days. LEVI carries a Zacks Rank #2.
Casey's General Stores
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. In addition to fuel, the stores provide a wide variety of merchandise, including groceries, prepared food, snacks, beverages, tobacco products, health and beauty aids, school supplies, housewares, pet supplies and automotive supplies.
Casey’s has an expected earnings growth rate of 23.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the last 60 days. CASY currently has a Zacks Rank #2.