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Consumer ETFs & Stocks Surging on Strong Holiday Season
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Given the record high that stock market has hit, this holiday season has been the strongest with an e-commerce bonanza. Total U.S. retail sales, excluding automobiles, rose 3.4% year over year between Nov 1 and Dec 24 per the MasterCard Advisors' SpendingPulse. President Donald Trump tweeted that the holiday sales figure is "the biggest number in U.S. history."
Notably, e-commerce sales have surged 18.8% year over year and represent about 14.6% of total retail sales. This is primarily driven by 17% growth in apparel sales. Online electronics sales were also robust, rising 10.7%. Meanwhile, sales at department stores and jewelry rose 6.9% and 8.8%, respectively. Consumer spending is benefiting from wage growth and a strong labor market. The U.S. economy is on a strong growth path with job additions being the fastest this year and unemployment dropping to the lowest level since 1969.
A robust holiday season drove many corners of the consumer space, including e-commerce, giving a boost to many stocks and ETFs in the final quarter of 2019. Below we have highlighted four such ETFs & stocks that are leading the space this holiday season.
This ETF provides investors with exposure to companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. It follows the MVIS Global Gaming Index, holding 42 securities in its basket. It is moderately concentrated across components with each holding less than 8% of the assets. The product has AUM of $27 million and average daily volume of roughly 3,000 shares. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
This ETF focuses on global retailers that derive significant revenues from online sales. It tracks the ProShares Online Retail Index, holding 24 stocks in its basket with the largest exposure to the top firm — Amazon. The product has amassed $27.9 million in its asset base and trades in a paltry volume of around 12,000 shares a day, on average. It charges 58 bps in annual fees from investors.
Multifactor Consumer Discretionary ETF – Up 2.9%
This fund offers a wide range of U.S. consumer discretionary stocks emphasizing factors (smaller cap, lower relative price, and higher profitability) that academic research has linked to higher expected returns. It follows the John Hancock Dimensional Consumer Discretionary Index and holds 113 stocks in its basket with none making up for more than 5.6% of assets. The ETF has been able to manage $42.2 million in its asset base while trades in average daily volume of 2,000 shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Bull Market Rages On: Bet Big for 2020 With These ETFs).
This product offers exposure to the retail segment of the consumer discretionary space by tracking the S&P Retail Select Industry Index. It holds 87 securities in its basket, with none accounting for more than 2.7%. The fund has amassed $226.4 million in its asset base and charges 35 bps in annual fees. Volume is extremely solid, exchanging nearly 4.8 million shares in hand a day, on average. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: A Bunch of Top-Ranked ETFs That Crushed the Market in 2019).
This specialty retailer sells footwear, headwear and accessories in retail stores in the United States and Canada. Its earnings estimate has risen by nine cents over the past month for the holiday quarter, representing year-over-year growth of 23.8%. The stock has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It is a specialty retailer of women's and men's apparel in the United States. The stock saw positive earnings estimate revision of nine cents for the holiday quarter in a month but its earnings are likely to decline 5.3% from the year-ago quarter. EXPR carries a Zacks Rank #1.
It is a specialty retailer in the action sports industry selling clothing, shoes and accessories. Its earnings estimate revision has moved up by three cents in a month for the holiday quarter, representing year-over-year growth of 11.1%. The stock sports a Zacks Rank #1 (read: Trade Deal Optimism Fuels Santa Rally: ETFs & Stocks to Bet On).
Bed Bath & Beyond Inc. – Up 19.3%
This is a leading operator of specialty retail stores in the United States and Canada. It is an omni-channel retailer, offering top-quality and differentiated products, services and solutions. The stock witnessed no earnings estimate revision and has an estimated earnings growth of 21.7% for the quarter (ending Feb 2020). Bed Bath & Beyond has a Zacks Rank #2.
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Consumer ETFs & Stocks Surging on Strong Holiday Season
Given the record high that stock market has hit, this holiday season has been the strongest with an e-commerce bonanza. Total U.S. retail sales, excluding automobiles, rose 3.4% year over year between Nov 1 and Dec 24 per the MasterCard Advisors' SpendingPulse. President Donald Trump tweeted that the holiday sales figure is "the biggest number in U.S. history."
Notably, e-commerce sales have surged 18.8% year over year and represent about 14.6% of total retail sales. This is primarily driven by 17% growth in apparel sales. Online electronics sales were also robust, rising 10.7%. Meanwhile, sales at department stores and jewelry rose 6.9% and 8.8%, respectively. Consumer spending is benefiting from wage growth and a strong labor market. The U.S. economy is on a strong growth path with job additions being the fastest this year and unemployment dropping to the lowest level since 1969.
Amazon.com (AMZN - Free Report) topped the list with a record number of shoppers during the holiday season with "billions of items ordered worldwide" from its site (read: Make the Most of this Holiday Season With These ETFs).
A robust holiday season drove many corners of the consumer space, including e-commerce, giving a boost to many stocks and ETFs in the final quarter of 2019. Below we have highlighted four such ETFs & stocks that are leading the space this holiday season.
ETF Corner
VanEck Vectors Gaming ETF (BJK - Free Report) – Up 8.7%
This ETF provides investors with exposure to companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment. It follows the MVIS Global Gaming Index, holding 42 securities in its basket. It is moderately concentrated across components with each holding less than 8% of the assets. The product has AUM of $27 million and average daily volume of roughly 3,000 shares. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
ProShares Online Retail ETF (ONLN - Free Report) – Up 3%
This ETF focuses on global retailers that derive significant revenues from online sales. It tracks the ProShares Online Retail Index, holding 24 stocks in its basket with the largest exposure to the top firm — Amazon. The product has amassed $27.9 million in its asset base and trades in a paltry volume of around 12,000 shares a day, on average. It charges 58 bps in annual fees from investors.
Multifactor Consumer Discretionary ETF – Up 2.9%
This fund offers a wide range of U.S. consumer discretionary stocks emphasizing factors (smaller cap, lower relative price, and higher profitability) that academic research has linked to higher expected returns. It follows the John Hancock Dimensional Consumer Discretionary Index and holds 113 stocks in its basket with none making up for more than 5.6% of assets. The ETF has been able to manage $42.2 million in its asset base while trades in average daily volume of 2,000 shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Bull Market Rages On: Bet Big for 2020 With These ETFs).
SPDR S&P Retail ETF (XRT - Free Report) – Up 2.8%
This product offers exposure to the retail segment of the consumer discretionary space by tracking the S&P Retail Select Industry Index. It holds 87 securities in its basket, with none accounting for more than 2.7%. The fund has amassed $226.4 million in its asset base and charges 35 bps in annual fees. Volume is extremely solid, exchanging nearly 4.8 million shares in hand a day, on average. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: A Bunch of Top-Ranked ETFs That Crushed the Market in 2019).
Stock Corner
Genesco Inc. (GCO - Free Report) – Up 32.8%
This specialty retailer sells footwear, headwear and accessories in retail stores in the United States and Canada. Its earnings estimate has risen by nine cents over the past month for the holiday quarter, representing year-over-year growth of 23.8%. The stock has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Express Inc. (EXPR - Free Report) – Up 25%
It is a specialty retailer of women's and men's apparel in the United States. The stock saw positive earnings estimate revision of nine cents for the holiday quarter in a month but its earnings are likely to decline 5.3% from the year-ago quarter. EXPR carries a Zacks Rank #1.
Tilly's Inc. (TLYS - Free Report) – Up 21.8%
It is a specialty retailer in the action sports industry selling clothing, shoes and accessories. Its earnings estimate revision has moved up by three cents in a month for the holiday quarter, representing year-over-year growth of 11.1%. The stock sports a Zacks Rank #1 (read: Trade Deal Optimism Fuels Santa Rally: ETFs & Stocks to Bet On).
Bed Bath & Beyond Inc. – Up 19.3%
This is a leading operator of specialty retail stores in the United States and Canada. It is an omni-channel retailer, offering top-quality and differentiated products, services and solutions. The stock witnessed no earnings estimate revision and has an estimated earnings growth of 21.7% for the quarter (ending Feb 2020). Bed Bath & Beyond has a Zacks Rank #2.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>