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5 Retail Stocks Up More Than 20% YTD & Still Going Strong
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The economy has had a roller-coaster ride so far this year. Starting on an upbeat note, the year took a nasty turn with the novel coronavirus bringing the economy to a standstill. We note that major indices — the Dow Jones, the NASDAQ, and the S&P 500 — fell to as low as 18,213.65, 6,631.42 and 2,191.86, respectively, on Mar 23. Since then, the indices have appreciated approximately 40.7%, 47.7%, and 40%, respectively, courtesy of some positive news.
In fact, year-to-date losses of Dow Jones and S&P 500 have contracted to 9.4% and 3.9%, respectively from 35.6% and 31.3% as of Mar 23. Meanwhile, the Nasdaq Composite index’s year-to-date return turned positive to 11.4% from negative 24.5% as of Mar 23.
Without doubt, this biological catastrophe has severely impacted industries across the board, taking a toll on employment and household income. Nonetheless, measures undertaken to support households, firms and financial market coupled with the resumption of commercial and industrial activities post the coronavirus lockdown have provided much needed impetus to the market. Again, the stunning addition of 2.5-million jobs in May and the decline in unemployment rate to 13.3% from 14.7% were other catalysts behind those green shoots in the market.
With the gradual reopening of the economy and people back on streets, consumer spending activity — one of the pivotal factors of the economy — is likely to regain momentum. In fact, U.S. retail and food services sales in May climbed 17.7%, following declines of 14.7% and 8.3% in April and March, respectively, as Americans flocked to restaurants and bars, bought apparels, spent on gasoline, and purchased sports equipment, furniture and electronics and appliance. No wonder, sales at non-store retailers continued to increase.
Such encouraging economic data instill optimism that the economy is gradually making its way out of the woods. Even the Wall Street is clearly negating the fear of rise in new coronavirus cases in the United States. Amid such a scenario, the Retail – Wholesale sector, which has gained 13.1% year-to-date, is likely to witness a sharp rebound.
It goes without saying that retailers are leaving no stone unturned to improve top-line performance and expand customer base. They remain committed to address the challenges related to the pandemic and position themselves for future success. In this respect, companies are directing resources toward digital platforms in order to better engage with customers, accelerating fleet optimization initiative, augmenting supply chain, and concentrating on improving financial flexibility. The industry players are also focusing on product strategy to resonate well with customers and advancing omni-channel capabilities.
Here we have highlighted five retail stocks that have gained more than 20% year to date and looks well poised based on their sound fundamentals and earnings growth prospects. These stocks have either Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B.
5 Prominent Picks
eBay Inc. (EBAY - Free Report) , which operates the marketplace and classifieds platforms that connect buyers and sellers globally, 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 6.2%, on average. It has a long-term earnings growth rate of 12.8%. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an improvement of 21.9% from the year-ago period. Moreover, the stock has rallied 37.9% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
We also suggest investing in SpartanNash Company (SPTN - Free Report) , which distributes and retails grocery products. The company has a trailing four-quarter positive earnings surprise of 17.1%, on average. The stock has a Zacks Rank #1 and a VGM Score of A. Moreover, the Zacks Consensus Estimate for its current financial year earnings indicates growth of 82.7% from the year-ago period. Notably, the stock has surged 31% so far in the year.
You may invest in Sportsman's Warehouse Holdings, Inc. (SPWH - Free Report) , which has a Zacks Rank #2 and a VGM Score of A. This outdoor sporting goods retailer has a trailing four-quarter positive earnings surprise of 32.5%, on average. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an improvement of 63.8% from the year-ago period. The stock has displayed a bullish run on the bourses gaining 67.3% year to date.
Investors can count on Domino's Pizza, Inc. (DPZ - Free Report) , with a long-term earnings growth rate of 12.8%. This pizza company has a trailing four-quarter positive earnings surprise of 12.7%, on average. The stock has a Zacks Rank #2 and a VGM Score of B. Moreover, the Zacks Consensus Estimate for its current financial year earnings indicates growth of 18.3% from the year-ago period. Notably, the stock has appreciated 28.5% year to date.
Dollar General Corporation (DG - Free Report) , a discount retailer, is also worth betting with a Zacks Rank #2 and a VGM Score of A. The company has a trailing four-quarter positive earnings surprise of 16.9%, on average. It has a long-term earnings growth rate of 12.4%. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an improvement of 31.4% from the year-ago period. Moreover, the stock has rallied 21.7% year to date.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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5 Retail Stocks Up More Than 20% YTD & Still Going Strong
The economy has had a roller-coaster ride so far this year. Starting on an upbeat note, the year took a nasty turn with the novel coronavirus bringing the economy to a standstill. We note that major indices — the Dow Jones, the NASDAQ, and the S&P 500 — fell to as low as 18,213.65, 6,631.42 and 2,191.86, respectively, on Mar 23. Since then, the indices have appreciated approximately 40.7%, 47.7%, and 40%, respectively, courtesy of some positive news.
In fact, year-to-date losses of Dow Jones and S&P 500 have contracted to 9.4% and 3.9%, respectively from 35.6% and 31.3% as of Mar 23. Meanwhile, the Nasdaq Composite index’s year-to-date return turned positive to 11.4% from negative 24.5% as of Mar 23.
Without doubt, this biological catastrophe has severely impacted industries across the board, taking a toll on employment and household income. Nonetheless, measures undertaken to support households, firms and financial market coupled with the resumption of commercial and industrial activities post the coronavirus lockdown have provided much needed impetus to the market. Again, the stunning addition of 2.5-million jobs in May and the decline in unemployment rate to 13.3% from 14.7% were other catalysts behind those green shoots in the market.
With the gradual reopening of the economy and people back on streets, consumer spending activity — one of the pivotal factors of the economy — is likely to regain momentum. In fact, U.S. retail and food services sales in May climbed 17.7%, following declines of 14.7% and 8.3% in April and March, respectively, as Americans flocked to restaurants and bars, bought apparels, spent on gasoline, and purchased sports equipment, furniture and electronics and appliance. No wonder, sales at non-store retailers continued to increase.
Such encouraging economic data instill optimism that the economy is gradually making its way out of the woods. Even the Wall Street is clearly negating the fear of rise in new coronavirus cases in the United States. Amid such a scenario, the Retail – Wholesale sector, which has gained 13.1% year-to-date, is likely to witness a sharp rebound.
It goes without saying that retailers are leaving no stone unturned to improve top-line performance and expand customer base. They remain committed to address the challenges related to the pandemic and position themselves for future success. In this respect, companies are directing resources toward digital platforms in order to better engage with customers, accelerating fleet optimization initiative, augmenting supply chain, and concentrating on improving financial flexibility. The industry players are also focusing on product strategy to resonate well with customers and advancing omni-channel capabilities.
Here we have highlighted five retail stocks that have gained more than 20% year to date and looks well poised based on their sound fundamentals and earnings growth prospects. These stocks have either Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B.
5 Prominent Picks
eBay Inc. (EBAY - Free Report) , which operates the marketplace and classifieds platforms that connect buyers and sellers globally, 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 6.2%, on average. It has a long-term earnings growth rate of 12.8%. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an improvement of 21.9% from the year-ago period. Moreover, the stock has rallied 37.9% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
We also suggest investing in SpartanNash Company (SPTN - Free Report) , which distributes and retails grocery products. The company has a trailing four-quarter positive earnings surprise of 17.1%, on average. The stock has a Zacks Rank #1 and a VGM Score of A. Moreover, the Zacks Consensus Estimate for its current financial year earnings indicates growth of 82.7% from the year-ago period. Notably, the stock has surged 31% so far in the year.
You may invest in Sportsman's Warehouse Holdings, Inc. (SPWH - Free Report) , which has a Zacks Rank #2 and a VGM Score of A. This outdoor sporting goods retailer has a trailing four-quarter positive earnings surprise of 32.5%, on average. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an improvement of 63.8% from the year-ago period. The stock has displayed a bullish run on the bourses gaining 67.3% year to date.
Investors can count on Domino's Pizza, Inc. (DPZ - Free Report) , with a long-term earnings growth rate of 12.8%. This pizza company has a trailing four-quarter positive earnings surprise of 12.7%, on average. The stock has a Zacks Rank #2 and a VGM Score of B. Moreover, the Zacks Consensus Estimate for its current financial year earnings indicates growth of 18.3% from the year-ago period. Notably, the stock has appreciated 28.5% year to date.
Dollar General Corporation (DG - Free Report) , a discount retailer, is also worth betting with a Zacks Rank #2 and a VGM Score of A. The company has a trailing four-quarter positive earnings surprise of 16.9%, on average. It has a long-term earnings growth rate of 12.4%. Moreover, the Zacks Consensus Estimate for its current financial year earnings suggests an improvement of 31.4% from the year-ago period. Moreover, the stock has rallied 21.7% year to date.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>