Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Boot Barn, Lithia Motors, Target, Zumiez and Best Buy

Read MoreHide Full Article

For Immediate Release

Chicago, IL – December 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Boot Barn Holdings, Inc. (BOOT - Free Report) , Lithia Motors, Inc. (LAD - Free Report) , Target Corp. (TGT - Free Report) , Zumiez Inc. (ZUMZ - Free Report) and Best Buy Co., Inc. (BBY - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

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., 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., 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 Corp. 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. 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., 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 >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                   

http://www.zacks.com                                                 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.