Best Buy Co., Inc. BBY has been focused on developing omnichannel capabilities, improving supply chain and containing costs along with strengthening partnerships with vendors. The company has been making progress in the healthcare technology business by undertaking buyouts. Some of its notable acquisitions are GreatCall, Critical Signal Technologies and BioSensics. Moreover, it has been progressing well with programs like Total Tech Support for fixing computers, laptops, appliances, smart home devices and connected devices. Further, Best Buy expanded its In-Home Advisor program to the core U.S. markets. Also, the company is on track with the next phase of its ‘Building the New Blue’ program —Building the New Blue: Chapter Two — which aims at pursuing growth opportunities, better execution in key areas, cost containment as well as investment in people and systems. In this regard, management targets $600 million of cost reduction by fiscal 2021. The aforementioned efforts have been aiding Best Buy’s performance. Notably, shares of this Richfield, MN-based company have appreciated 38.8% in the past six months. This Zacks Rank #2 (Buy) stock has outperformed the Retail-Wholesale sector and the S&P 500 Index that rallied 14.5% and 18.1%, respectively, in the said timeframe. Why the Retail Sector? Like Best Buy, there are prominent retailers that are showcasing strong performance on favorable consumer environment and strategic endeavors. Retailers have been undertaking initiatives from opening smaller-format stores to bringing in new loyalty program and embracing new technologies to providing fast delivery options on online purchase or via apps. 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 such as Amazon ( AMZN Quick Quote AMZN - Free Report) . Retail-Wholesale sector’s prospects are closely tied to the purchasing power of consumers, who look pretty confident courtesy of a solid labor market and rise in disposable income. Per the Labor Department, the United States added 225,000 jobs in January, 2020. Market pundits expect consumer spending — one of the pivotal factors driving the economy — to remain strong courtesy of upbeat sentiment. We note that consumer sentiment index rose to 100.9 in February from 99.8 last month, according to the University of Michigan. Per the Commerce Department U.S. retail, food services sales in January inched up 0.3% to $529.8 billion.
3 More Prominent Picks We have shortlisted stocks on the basis of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B. Also, these stocks have outperformed the sector. You can see . the complete list of today’s Zacks #1 Rank stocks here Burlington Stores, Inc. BURL operates as a retailer of branded apparel products in the United States. The company has made multiple alterations to its business model to adapt to the ongoing changes in the retail space and stay relevant. It has steadily increased vendor counts, made technological advancements, initiated better marketing approach and focused on improving assortment trends. Also, management has been undertaking efforts to improve operating margin by augmenting sales, optimizing markdowns and effectively managing inventory. Notably, this Zacks Rank #2 company has a long-term earnings growth rate of 15.1% and a VGM Score of B. The company has a trailing four-quarter positive earnings surprise of 7.6%, on average. The stock has rallied about 46.1% in the past six months. Another stock worth considering is Lowe’s Companies Inc. LOW. The company has a long-term earnings growth rate of 14% and a VGM Score of A. This Mooresville, NC-based home improvement retailer has a trailing four-quarter positive earnings surprise of 0.9%, on average. Notably, shares of this Zacks Rank #2 company have gained 27.1% in the past six months. The company has been growing on the back of pro customer strategy, omni-channel efforts and merchandising initiatives. Also, it is resorting to initiatives such as adding SKUs and drop-ship vendors to rapidly expand product assortment online. Further, it intends to enhance customers’ shopping experience by introducing features — including one-click checkout and scheduling delivery. Investors can also check Costco Wholesale Corporation’s COST. The company’s shares have gained 18.7% in the past six months. The company’s growth strategies, better price management and strong membership trends have been aiding its performance. Moreover, the company is rapidly adopting the omni-channel mantra to provide a seamless shopping experience, whether online or in-stores. It is steadily expanding e-commerce capabilities in the United States, Canada, the U.K., Mexico, Korea, Taiwan and Japan. Further, a differentiated product range enables the company to provide an upscale shopping experience for members. This Zacks Rank #2 company has a long-term earnings growth rate of 8.1% and a VGM Score of B. Moreover, the company has trailing four-quarter positive earnings surprise of 7.8%, on average. Free: Zacks’ Single Best Stock Set to Double Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all. This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain. See 5 Stocks Set to Double>>