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.
These 4 Retail Stocks Have Crushed the Market in 2019
Read MoreHide Full Article
The year 2019 has been a roller coaster ride for the Retail-Wholesale sector, which has witnessed fundamental changes in its dynamics with technology taking the center stage and online shopping gaining preference over traditional ways. The sector, which occupies top 19% position in the list of Zacks sectors (three out of 16), has gained roughly 23.2% so far in the year.
The health of the sector is closely tied to the purchasing power of consumers. Factors such as steady wage gains and solid labor market have been contributing toward improving consumer sentiment. This has to a large extent translated into higher consumer spending, which is a major positive for retailers. The main economic driver, consumer spending, grew at a pace of 2.9% during third-quarter 2019.
Certainly, retailers have taken initiatives from opening smaller-format stores to bringing in new loyalty program and from embracing new technologies to providing fast delivery options on online purchase or via apps. They have been looking at every nook and cranny for solutions to accommodate and evolve with changes in the retail landscape. Notably, better price, omni-channel capabilities and unique products are requisites for brick-&-mortar retailers to stay in the game with pure e-commerce players.
With right strategies in right place and right direction, there are stocks that have displayed outstanding performance on the bourses and crushed the market. Here are four stocks you can count upon. We have shortlisted them on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. Also, these stocks have comfortably outpaced the S&P 500 index that rose 26% in the year-to-date period.
4 Prominent Picks
Boot Barn Holdings, Inc. (BOOT - Free Report) , a lifestyle retail chain, is a solid bet with a Zacks Rank #1 and a VGM Score of B. The company has a trailing four-quarter positive earnings surprise of 22.7%, on average. The company, with a long-term earnings growth rate of 17%, has seen its shares surged 148.6% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Another stock worth considering is Lithia Motors, Inc. (LAD - Free Report) , which has a long-term earnings growth rate of 9.7%. This automotive retailer has a trailing four-quarter positive earnings surprise of 7.6%, on average. The stock, which flaunts a Zacks Rank #1, has a VGM Score of A. Moreover, shares of the company have appreciated 103.7% year to date.
We also suggest investing in Target Corporation (TGT - Free Report) with a long-term earnings growth rate of 7.5% and a VGM Score of B. This general merchandise retailer has a trailing four-quarter positive earnings surprise of 8.6%, on average. The stock, which sports a Zacks Rank #1, has soared 94.3% so far in 2019.
You can also add Zumiez Inc. (ZUMZ - Free Report) to your portfolio. This specialty retailer of apparel, footwear, accessories, and hardgoods has a long-term earnings growth rate of 12% and a VGM Score of B. This Zacks Rank #1 stock has a trailing four-quarter positive earnings surprise of 64.1%, on average. Moreover, the stock has increased 63.7% year to date.
Investors can also count on Best Buy Co., Inc. (BBY - Free Report) , which operates as a retailer of technology products, services, and solutions. This Zacks Rank #2 company has a long-term earnings growth rate of 8.7% and a VGM Score of A. The company has a trailing four-quarter positive earnings surprise of 9.9%, on average. Notably, shares of the company have increased 63.1% year to date.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?
Image: Bigstock
These 4 Retail Stocks Have Crushed the Market in 2019
The year 2019 has been a roller coaster ride for the Retail-Wholesale sector, which has witnessed fundamental changes in its dynamics with technology taking the center stage and online shopping gaining preference over traditional ways. The sector, which occupies top 19% position in the list of Zacks sectors (three out of 16), has gained roughly 23.2% so far in the year.
The health of the sector is closely tied to the purchasing power of consumers. Factors such as steady wage gains and solid labor market have been contributing toward improving consumer sentiment. This has to a large extent translated into higher consumer spending, which is a major positive for retailers. The main economic driver, consumer spending, grew at a pace of 2.9% during third-quarter 2019.
Certainly, retailers have taken initiatives from opening smaller-format stores to bringing in new loyalty program and from embracing new technologies to providing fast delivery options on online purchase or via apps. They have been looking at every nook and cranny for solutions to accommodate and evolve with changes in the retail landscape. Notably, better price, omni-channel capabilities and unique products are requisites for brick-&-mortar retailers to stay in the game with pure e-commerce players.
With right strategies in right place and right direction, there are stocks that have displayed outstanding performance on the bourses and crushed the market. Here are four stocks you can count upon. We have shortlisted them on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. Also, these stocks have comfortably outpaced the S&P 500 index that rose 26% in the year-to-date period.
4 Prominent Picks
Boot Barn Holdings, Inc. (BOOT - Free Report) , a lifestyle retail chain, is a solid bet with a Zacks Rank #1 and a VGM Score of B. The company has a trailing four-quarter positive earnings surprise of 22.7%, on average. The company, with a long-term earnings growth rate of 17%, has seen its shares surged 148.6% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Another stock worth considering is Lithia Motors, Inc. (LAD - Free Report) , which has a long-term earnings growth rate of 9.7%. This automotive retailer has a trailing four-quarter positive earnings surprise of 7.6%, on average. The stock, which flaunts a Zacks Rank #1, has a VGM Score of A. Moreover, shares of the company have appreciated 103.7% year to date.
We also suggest investing in Target Corporation (TGT - Free Report) with a long-term earnings growth rate of 7.5% and a VGM Score of B. This general merchandise retailer has a trailing four-quarter positive earnings surprise of 8.6%, on average. The stock, which sports a Zacks Rank #1, has soared 94.3% so far in 2019.
You can also add Zumiez Inc. (ZUMZ - Free Report) to your portfolio. This specialty retailer of apparel, footwear, accessories, and hardgoods has a long-term earnings growth rate of 12% and a VGM Score of B. This Zacks Rank #1 stock has a trailing four-quarter positive earnings surprise of 64.1%, on average. Moreover, the stock has increased 63.7% year to date.
Investors can also count on Best Buy Co., Inc. (BBY - Free Report) , which operates as a retailer of technology products, services, and solutions. This Zacks Rank #2 company has a long-term earnings growth rate of 8.7% and a VGM Score of A. The company has a trailing four-quarter positive earnings surprise of 9.9%, on average. Notably, shares of the company have increased 63.1% year to date.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>