We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
US Holiday Sales to Cross $1T for the First Time: 5 Picks
Read MoreHide Full Article
Retailers are gearing up for the holiday season, starting late November and stretching until early January. Despite rising tariffs, trade tensions and global economic slowdown, a record number of consumers are expected to splurge.
U.S. holiday retail sales are likely to jump 3.8% year over year to $1.008 trillion this year, the first ever trillion-dollar holiday season, per eMarketer. Last year, holiday retail sales grew 2.4%. Cyber Monday, in particular, is expected to be the biggest online shopping day in history, with sales poised to surpass $10 billion. Black Friday and Thanksgiving Day are also anticipated to witness solid sales.
eMarketer added that in-store sales will increase 2.5% to $872.25 billion during the holiday season compared to last year, while e-commerce sales will climb 13.2% to $135.35 billion. eMarketer principal analyst Andrew Lipsman added that “with fast shipping at a premium during the compressed holiday season, retailers like Amazon have an advantage for online deliveries, while those with advanced click-and-collect operations like Walmart, Target and Best Buy will also get a leg up on the competition.”
The National Retail Federation (NRF), in the meanwhile, has issued an encouraging picture. According to the NRF, holiday retail sales — excluding restaurants, automobile dealers and gasoline stations — are projected to rise 3.8% to 4.2% year over year to a total of $727.9 billion to $730.7 billion.
What’s more, the NRF anticipates online sales growth between 11% and 14% to a total of $162.6-$166.9 billion, up from $146.5 billion reported during the same period last year.
Last but not the least, per Deloitte’s annual holiday retail forecast, holiday sales are expected to increase between 4.5% and 5% this year. Deloitte further forecasts that e-commerce sales during the holiday season will jump 14-18% on a year-over-year basis.
But why are retail sales expected to rise during the holiday season? This is because the economy is still growing albeit at a slower rate and labor market remains healthy. Additionally, consumer confidence remains high, which should boost holiday spending.
Taking the bullish holiday sales trend into account, from retail behemoths to e-commerce giants, all are poised to make a strong year-end rally. But there are five retailers in particular that investors should place their bets on. Take a look —
Shoe Carnival, Inc. (SCVL - Free Report) operates as a family footwear retailer in the United States. The company currently has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has climbed 3.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 17.6%, way higher than the Retail - Apparel and Shoes industry’s projected rise of 0.6%.
Burlington Stores, Inc. (BURL - Free Report) operates as a retailer of branded apparel products in the United States. The company currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has risen 0.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.3%, higher than the Retail - Discount Stores industry’s estimated rise of 9.7%.
RH (RH - Free Report) operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, décor, outdoor and garden, tableware, and child and teen furnishings. RH currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.9%, higher than the Retail - Home Furnishings industry’s projected increase of 3.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States. Target currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 3.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 18%, higher than the Retail - Discount Stores industry’s expected growth of 9.7%.
Boot Barn Holdings, Inc. (BOOT - Free Report) , a lifestyle retail chain, operates specialty retail stores in the United States. The company currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved 6.7% north over the past 60 days. The company’s expected earnings growth rate for the current year is 30.4%, higher than the Retail - Apparel and Shoes industry’s estimated rise of 0.6%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
Image: Bigstock
US Holiday Sales to Cross $1T for the First Time: 5 Picks
Retailers are gearing up for the holiday season, starting late November and stretching until early January. Despite rising tariffs, trade tensions and global economic slowdown, a record number of consumers are expected to splurge.
U.S. holiday retail sales are likely to jump 3.8% year over year to $1.008 trillion this year, the first ever trillion-dollar holiday season, per eMarketer. Last year, holiday retail sales grew 2.4%. Cyber Monday, in particular, is expected to be the biggest online shopping day in history, with sales poised to surpass $10 billion. Black Friday and Thanksgiving Day are also anticipated to witness solid sales.
eMarketer added that in-store sales will increase 2.5% to $872.25 billion during the holiday season compared to last year, while e-commerce sales will climb 13.2% to $135.35 billion. eMarketer principal analyst Andrew Lipsman added that “with fast shipping at a premium during the compressed holiday season, retailers like Amazon have an advantage for online deliveries, while those with advanced click-and-collect operations like Walmart, Target and Best Buy will also get a leg up on the competition.”
The National Retail Federation (NRF), in the meanwhile, has issued an encouraging picture. According to the NRF, holiday retail sales — excluding restaurants, automobile dealers and gasoline stations — are projected to rise 3.8% to 4.2% year over year to a total of $727.9 billion to $730.7 billion.
What’s more, the NRF anticipates online sales growth between 11% and 14% to a total of $162.6-$166.9 billion, up from $146.5 billion reported during the same period last year.
Last but not the least, per Deloitte’s annual holiday retail forecast, holiday sales are expected to increase between 4.5% and 5% this year. Deloitte further forecasts that e-commerce sales during the holiday season will jump 14-18% on a year-over-year basis.
But why are retail sales expected to rise during the holiday season? This is because the economy is still growing albeit at a slower rate and labor market remains healthy. Additionally, consumer confidence remains high, which should boost holiday spending.
Taking the bullish holiday sales trend into account, from retail behemoths to e-commerce giants, all are poised to make a strong year-end rally. But there are five retailers in particular that investors should place their bets on. Take a look —
Shoe Carnival, Inc. (SCVL - Free Report) operates as a family footwear retailer in the United States. The company currently has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has climbed 3.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 17.6%, way higher than the Retail - Apparel and Shoes industry’s projected rise of 0.6%.
Burlington Stores, Inc. (BURL - Free Report) operates as a retailer of branded apparel products in the United States. The company currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has risen 0.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.3%, higher than the Retail - Discount Stores industry’s estimated rise of 9.7%.
RH (RH - Free Report) operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, décor, outdoor and garden, tableware, and child and teen furnishings. RH currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.9%, higher than the Retail - Home Furnishings industry’s projected increase of 3.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States. Target currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has risen 3.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 18%, higher than the Retail - Discount Stores industry’s expected growth of 9.7%.
Boot Barn Holdings, Inc. (BOOT - Free Report) , a lifestyle retail chain, operates specialty retail stores in the United States. The company currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved 6.7% north over the past 60 days. The company’s expected earnings growth rate for the current year is 30.4%, higher than the Retail - Apparel and Shoes industry’s estimated rise of 0.6%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>