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Add These 5 Retail Growth Stocks to Cash in on the Market Rally
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Wall Street started the second half of 2020 on an upbeat note, with markets largely ignoring fears stemming from the spurt in coronavirus cases. Increasing risk appetite among investors, who also shrugged off worries emanating from re-imposed business restrictions in some parts of the economy, propelled major indices on Jul 6. A better-than-anticipated report on the U.S. services sector and bullish sentiment in China also injected a dose of optimism.
Notably, the Dow Jones climbed 459.67 points or 1.8%, marking the fourth positive trading session in five, while the S&P 500 added 49.71 points or 1.6%, thus stringing together five successive wins. The tech-heavy NASDAQ scored 226.02 points or 2.2%, witnessing the fifth consecutive gain, powered by a 5.8% jump in Amazon (AMZN - Free Report) stock. Shares of this e-commerce behemoth closed above $3,000 for the first time.
The U.S. equity market has had a bumpy ride with coronavirus snapping the Wall Street’s longest ever bull run in March. But since then, the market has staged a sharp rebound. The Dow Jones, the Nasdaq and the S&P 500 have appreciated 41.4%, 52.1% and 42.1%, respectively, since the low hit on Mar 23. In fact, Wall Street put up its best performance in second-quarter 2020 in more than two decades.
Well looking at the bullish run, some market pundits are of the opinion that the worst days may be behind for the financial markets with people gradually adapting to new ways of living amid the pandemic. Clearly, hopes of an economic revival supported by stimulus measures will steer the market, with some volatility creeping in as the second-quarter earnings season is set to begin.
Key Notes
Without a doubt, this deadly virus has severely impacted industries across the board, taking a toll on employment and household income. Nonetheless, stimulus measures undertaken to support households, firms and financial market coupled with the resumption of commercial and industrial activities post the coronavirus lockdown have provided the much-needed impetus to the market. Media reports of an additional infrastructure package also contributed to the stock market rally.
Again, the addition of 4.8-million jobs in June and the drop in unemployment rate to 11.1% from 13.3% in May were the other catalysts. Notably, the economy created 2.7 million jobs in the month of May. Clearly, the massive financial assistance — from business loans to stimulus checks for individuals — acted as tailwinds and bolstered consumer sentiment that reached a three-month high in June. Per Conference Board data, the index rose to 98.1 last month from a revised reading of 85.9 in May.
With the gradual reopening of the economy and people back on the streets, consumer spending activity — one of the pivotal factors of the economy — is likely to pick up pace. 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.
Such encouraging data signals that the economy is gradually making its way out of the woods. Amid such a scenario, the Retail – Wholesale sector is likely to witness a sharp rebound. Here we have shortlisted five Retail-Wholesale stocks on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B. These stocks not only boast sound fundamentals but have also outperformed the sector on a year-to-date basis. Notably, the sector has risen 15.8%, so far in the year.
5 Prominent Picks
We 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 Growth Score of A. Moreover, the Zacks Consensus Estimate for its current financial-year earnings indicates growth of 82.7% from the year-ago period. We note that the stock has surged 46.6% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Big Lots, Inc. (BIG - Free Report) , a discount retailer, is a solid bet with a Zacks Rank #1 and a Growth Score of A. The company has a trailing four-quarter positive earnings surprise of 62.2%, on average. It has a long-term earnings growth rate of 7.1%. Moreover, the Zacks Consensus Estimate for its current financial-year earnings suggests an improvement of 66.2% from the year-ago period. Notably, the stock has rallied 39.4% so far in the year.
Sprouts Farmers Market, Inc. (SFM - Free Report) , which provides fresh, natural, and organic food products, is also worth betting on. It has a Zacks Rank #1 and a Growth Score of A. The company has a trailing four-quarter positive earnings surprise of 37.2%, on average. It has a long-term earnings growth rate of 9.2%. Moreover, the Zacks Consensus Estimate for its current financial-year earnings suggests an improvement of 35.2% from the year-ago period. The stock has rallied 33.8% year to date.
You may invest in Sportsman's Warehouse Holdings, Inc. (SPWH - Free Report) , which has a Zacks Rank #2 and a Growth 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 68.1% from the year-ago period. The stock has displayed a bullish run on the bourses so far this year, gaining 79.7%.
Investors can also count on Domino's Pizza, Inc. (DPZ - Free Report) , which has 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 Growth Score of A. Moreover, the Zacks Consensus Estimate for its current financial-year earnings calls for growth of 18.3% from the year-ago period. Notably, the stock has appreciated 31% year to date.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Image: Bigstock
Add These 5 Retail Growth Stocks to Cash in on the Market Rally
Wall Street started the second half of 2020 on an upbeat note, with markets largely ignoring fears stemming from the spurt in coronavirus cases. Increasing risk appetite among investors, who also shrugged off worries emanating from re-imposed business restrictions in some parts of the economy, propelled major indices on Jul 6. A better-than-anticipated report on the U.S. services sector and bullish sentiment in China also injected a dose of optimism.
Notably, the Dow Jones climbed 459.67 points or 1.8%, marking the fourth positive trading session in five, while the S&P 500 added 49.71 points or 1.6%, thus stringing together five successive wins. The tech-heavy NASDAQ scored 226.02 points or 2.2%, witnessing the fifth consecutive gain, powered by a 5.8% jump in Amazon (AMZN - Free Report) stock. Shares of this e-commerce behemoth closed above $3,000 for the first time.
The U.S. equity market has had a bumpy ride with coronavirus snapping the Wall Street’s longest ever bull run in March. But since then, the market has staged a sharp rebound. The Dow Jones, the Nasdaq and the S&P 500 have appreciated 41.4%, 52.1% and 42.1%, respectively, since the low hit on Mar 23. In fact, Wall Street put up its best performance in second-quarter 2020 in more than two decades.
Well looking at the bullish run, some market pundits are of the opinion that the worst days may be behind for the financial markets with people gradually adapting to new ways of living amid the pandemic. Clearly, hopes of an economic revival supported by stimulus measures will steer the market, with some volatility creeping in as the second-quarter earnings season is set to begin.
Key Notes
Without a doubt, this deadly virus has severely impacted industries across the board, taking a toll on employment and household income. Nonetheless, stimulus measures undertaken to support households, firms and financial market coupled with the resumption of commercial and industrial activities post the coronavirus lockdown have provided the much-needed impetus to the market. Media reports of an additional infrastructure package also contributed to the stock market rally.
Again, the addition of 4.8-million jobs in June and the drop in unemployment rate to 11.1% from 13.3% in May were the other catalysts. Notably, the economy created 2.7 million jobs in the month of May. Clearly, the massive financial assistance — from business loans to stimulus checks for individuals — acted as tailwinds and bolstered consumer sentiment that reached a three-month high in June. Per Conference Board data, the index rose to 98.1 last month from a revised reading of 85.9 in May.
With the gradual reopening of the economy and people back on the streets, consumer spending activity — one of the pivotal factors of the economy — is likely to pick up pace. 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.
Such encouraging data signals that the economy is gradually making its way out of the woods. Amid such a scenario, the Retail – Wholesale sector is likely to witness a sharp rebound. Here we have shortlisted five Retail-Wholesale stocks on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B. These stocks not only boast sound fundamentals but have also outperformed the sector on a year-to-date basis. Notably, the sector has risen 15.8%, so far in the year.
5 Prominent Picks
We 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 Growth Score of A. Moreover, the Zacks Consensus Estimate for its current financial-year earnings indicates growth of 82.7% from the year-ago period. We note that the stock has surged 46.6% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Big Lots, Inc. (BIG - Free Report) , a discount retailer, is a solid bet with a Zacks Rank #1 and a Growth Score of A. The company has a trailing four-quarter positive earnings surprise of 62.2%, on average. It has a long-term earnings growth rate of 7.1%. Moreover, the Zacks Consensus Estimate for its current financial-year earnings suggests an improvement of 66.2% from the year-ago period. Notably, the stock has rallied 39.4% so far in the year.
Sprouts Farmers Market, Inc. (SFM - Free Report) , which provides fresh, natural, and organic food products, is also worth betting on. It has a Zacks Rank #1 and a Growth Score of A. The company has a trailing four-quarter positive earnings surprise of 37.2%, on average. It has a long-term earnings growth rate of 9.2%. Moreover, the Zacks Consensus Estimate for its current financial-year earnings suggests an improvement of 35.2% from the year-ago period. The stock has rallied 33.8% year to date.
You may invest in Sportsman's Warehouse Holdings, Inc. (SPWH - Free Report) , which has a Zacks Rank #2 and a Growth 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 68.1% from the year-ago period. The stock has displayed a bullish run on the bourses so far this year, gaining 79.7%.
Investors can also count on Domino's Pizza, Inc. (DPZ - Free Report) , which has 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 Growth Score of A. Moreover, the Zacks Consensus Estimate for its current financial-year earnings calls for growth of 18.3% from the year-ago period. Notably, the stock has appreciated 31% year to date.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
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