4 solid retail stocks to buy in a tough industry

0

TThe retail sector, which was trying to make a steady comeback after being beaten last year, slowed in November. However, sales have always increased despite challenges such as the crisis in the supply chain.

This saw retail sales rise again in November. In addition, the holidays are still not over, sales are expected to increase further in the coming weeks. In view of this situation, actions like Boot Barn Holdings, Inc.BOOT, Target company TGT, Costco Wholesale Company COT and Tapestry, Inc. TPRs should benefit in the short term.

Retail sales increase in November

Retail sales slowed slightly but still rose 0.3% month over month in November, the Commerce Department said on December 15. On a year-over-year basis, retail sales rose 18.2% in November. This is the fourth consecutive month of increases, indicating that people are willing to spend more, but in a calculated way.

Excluding gasoline and automobiles, retail sales increased 0.2%. The holiday season has always been a good one for retailers. Sales weren’t that impressive this year, but there are enough reasons.

The holiday season, unlike other years, started earlier this time, which saw people start shopping for gifts as early as October n. Additionally, people are aware of the supply chain crisis, which has seen them start shopping for the holiday season much earlier. Retail sales thus recorded their best figures for seven months in October, surging an unexpected 1.8%.

This slowed the retail sales figures somewhat in November, but overall retail sales managed to rise nonetheless, indicating that the economy is on track for a faster recovery.

The retail industry is set to grow

The supply chain crisis is just one of many challenges facing several industries, including retail, in the United States. People continued to spend despite soaring prices, thus helping the retail space. Earlier this month, the Labor Department said the consumer price index had jumped 6.4%, the biggest year-over-year jump since 1982.

The retail sector was battered and bruised last year due to the pandemic. Since then, the sector has been trying to bounce back thanks to e-commerce, which has so far played a major role in rescuing thousands of traders.

The pandemic has also seen people change their shopping habits, as most people shop online. However, retail sales were unchanged in November for the first time in months.

With the opening of the economy, people have also spent on vacations and recreational activities. This saw clothing and restaurant and bar sales jump in November. Clothing sales rose 0.5%, while restaurant sales rose 1% in November.

Our choices

The retail sector currently faces many challenges, but its growth is not stalling, which is a good sign. In fact, with the economy reopening and the holiday season far from over, the industry is poised to grow in the near term. Given this scenario, it would be ideal to invest in retail stocks with a strong online presence. We have selected four actions for you. Each of the stocks carries a Zacks Rank # 1 (strong buy) or 2 (buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Boot Barn Holdings, Inc. operates as a lifestyle chain of stores devoted to western and work footwear, clothing and accessories. BOOT’s products include boots, jeans, western shirts, cowboy hats, belts and belt buckles, as well as western-style jewelry and accessories. Boot Barn sells its products through bootbarn.com, an e-commerce site.

Boot Barn Holdings’ expected earnings growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 25.7% in the past 60 days. BOOT shares have gained 22.9% in the past three months. Boot Barn Holdings holds a Zacks Rank # 1.

Tapestry, Inc. is the designer and distributor of fine accessories and gifts for women and men in the United States and around the world. TPR offers lifestyle products, which include handbags, accessories for women and men, shoes, jewelry, seasonal clothing collections, sunglasses, travel bags, perfumes and watches. .

Tapestry posted better-than-expected results for the first quarter of fiscal 2022, driven by robust demand and strong customer engagement. TPR posted adjusted first quarter earnings of 82 cents per share, beating Zacks’ consensus estimate of 69 cents.

Tapestry’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 11.5% in the past 60 days. TPR shares have gained 2.1% in the past three months. Tapestry sports a row of Zacks # 1.

Costco Wholesale Company sells high volumes of food and general merchandise (including household products and appliances) at reduced prices in member warehouses. Costco is one of the largest warehouse club operators in the United States. COST also operates e-commerce websites in the United States, Canada, United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.

Costco Wholesale Corporation’s expected profit growth rate for the current year is 13.2%. Zacks’ consensus estimate for current year earnings has improved 5.6% in the past 60 days. COST stock has gained 19.2% in the past 30 days. Costco Wholesale Corporation has a Zacks Rank # 2.

Target company has grown from a simple brick and mortar retailer to an omnichannel entity. TGT has invested in technology, improved websites and mobile applications, and modernized the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.

Target Corporation reported adjusted earnings of $ 3.03 per share for the third quarter of fiscal 2021, beating Zacks’ consensus estimate of $ 2.87 and up 8.7% year-on-year former. TGT’s total revenue for the quarter was $ 25,652 million, increasing 13.3% year-over-year and beating Zacks’ consensus estimate of $ 24,906 million.

Target Corporation’s expected profit growth rate for the current year is 40%. Zacks’ consensus estimate for current year earnings has improved 2.6% in the past 60 days. TGT shares have risen 26.5% since the start of the year. The target has a Zacks Rank # 2.

5 actions in the process of doubling

Each has been handpicked by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations have climbed + 143.0%, + 175.9%, +498 , 3% and + 673.0%.

Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.

Today, discover these 5 potential circuits >>

Click to get this free report

Target Corporation (TGT): Free share analysis report

Costco Wholesale Corporation (COST): Free Inventory Analysis Report

Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report

Tapestry, Inc. (TPR): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks investment research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.