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U.S. retail sales rose the maximum in six months in May. Sales increased 0.8% sequentially in the month, after an upwardly revised 0.4% growth in April, handily beating market expectations of a 0.4% rise.
Higher sales at gasoline stations and motor vehicle & parts dealers led to the beat as well as the strengthened outlook for the U.S. economy. Year on year, retail trade expanded 5.9% in May compared with a 4.8% rise in April.
Out of the 13 key sectors, 10 registered growth last month. Below we recommend a few ETFs and stocks that are likely to be the prime beneficiaries of this uptick in retail sales (read: Time to Buy Consumer Discretionary ETFs: 5 Top Picks).
Building Materials
Americans’ intention to buy more building materials puts PowerShares Dynamic Building & Construction Portfolio (PKB - Free Report) in focus. There was a revival in sales at building material stores in May (up 2.4% versus down 0.8% in April). The underlying index of the fund consists of stocks of U.S. building and construction companies (read: Best Sector ETFs of Last Week).
The Zacks Rank #2 (Buy) company is a provider of comprehensive heating, ventilation and air conditioning installation, maintenance, repair and replacement services.
Retail
Miscellaneous store retailers (up 2.7% versus down 0.3%) and general merchandise stores (up 1.2% versus down 0.3%) witnessed a rebound in sales. There was notable spending on clothing & clothing accessories stores (up 1.3% versus up 1.2%). VanEck Vectors Retail ETF (RTH - Free Report) can also be played, thanks to the upbeat numbers (read: Here's Why the Rally in Retail ETFs Will Continue in 2H).
The Zacks Rank #2 company is involved in the designing, marketing and distribution of consumer fashion accessories.
Online Stores
Though brick-and-mortar retailers were steady in recent times, the underlying trend is shifting toward online. Nonstore retailers continued to see sales rise having logged an expansion of 0.1% in May versus an increase of 1.5% registered in April. Such consistency probably offered Amplify Online Retail ETF (IBUY - Free Report) 2.54% gains on Jun 14, while ProShares Long Online/Short Stores ETF (CLIX - Free Report) gained 3.4% on the day.
The Zacks Rank #1 (Strong Buy) company is in the retail sale of consumer products and subscriptions in North America and internationally. It operates through North America, International, and Amazon Web Services (AWS) segments.
Energy
Gasoline prices are on a tear. Inflation data also gives cues to that. So, investors can take a look at United States Gasoline (UGA - Free Report) . Sales at gasoline stations rose 2% May compared with a 1% rise in April.
The Zacks Rank #1 company has a diversified energy business focused on petroleum refining, marketing and supply of refined products, and retail marketing of fuel and general merchandise.
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May's Retail Sales Growth Highest in 6 Months: ETFs & Stocks
U.S. retail sales rose the maximum in six months in May. Sales increased 0.8% sequentially in the month, after an upwardly revised 0.4% growth in April, handily beating market expectations of a 0.4% rise.
Higher sales at gasoline stations and motor vehicle & parts dealers led to the beat as well as the strengthened outlook for the U.S. economy. Year on year, retail trade expanded 5.9% in May compared with a 4.8% rise in April.
Out of the 13 key sectors, 10 registered growth last month. Below we recommend a few ETFs and stocks that are likely to be the prime beneficiaries of this uptick in retail sales (read: Time to Buy Consumer Discretionary ETFs: 5 Top Picks).
Building Materials
Americans’ intention to buy more building materials puts PowerShares Dynamic Building & Construction Portfolio (PKB - Free Report) in focus. There was a revival in sales at building material stores in May (up 2.4% versus down 0.8% in April). The underlying index of the fund consists of stocks of U.S. building and construction companies (read: Best Sector ETFs of Last Week).
Comfort Systems USA Inc. (FIX - Free Report)
The Zacks Rank #2 (Buy) company is a provider of comprehensive heating, ventilation and air conditioning installation, maintenance, repair and replacement services.
Retail
Miscellaneous store retailers (up 2.7% versus down 0.3%) and general merchandise stores (up 1.2% versus down 0.3%) witnessed a rebound in sales. There was notable spending on clothing & clothing accessories stores (up 1.3% versus up 1.2%). VanEck Vectors Retail ETF (RTH - Free Report) can also be played, thanks to the upbeat numbers (read: Here's Why the Rally in Retail ETFs Will Continue in 2H).
Fossil Group Inc. (FOSL - Free Report)
The Zacks Rank #2 company is involved in the designing, marketing and distribution of consumer fashion accessories.
Online Stores
Though brick-and-mortar retailers were steady in recent times, the underlying trend is shifting toward online. Nonstore retailers continued to see sales rise having logged an expansion of 0.1% in May versus an increase of 1.5% registered in April. Such consistency probably offered Amplify Online Retail ETF (IBUY - Free Report) 2.54% gains on Jun 14, while ProShares Long Online/Short Stores ETF (CLIX - Free Report) gained 3.4% on the day.
Amazon.com Inc. (AMZN - Free Report)
The Zacks Rank #1 (Strong Buy) company is in the retail sale of consumer products and subscriptions in North America and internationally. It operates through North America, International, and Amazon Web Services (AWS) segments.
Energy
Gasoline prices are on a tear. Inflation data also gives cues to that. So, investors can take a look at United States Gasoline (UGA - Free Report) . Sales at gasoline stations rose 2% May compared with a 1% rise in April.
Delek US Holdings Inc. (DK - Free Report)
The Zacks Rank #1 company has a diversified energy business focused on petroleum refining, marketing and supply of refined products, and retail marketing of fuel and general merchandise.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>