With Christmas just a couple of days away, bargain hunters have been hitting the shops and streets buying gifts for their loved ones. Now if an investor is in two minds regarding adding some merry spirit to their portfolio, we would like to make the work easier by presenting four Retail-Wholesale stocks that are likely to spread joy.
Retail Seems to be the Season’s Demand
A buoyant consumer environment marked by solid labor market, rise in disposable income and an uptick in consumer sentiment has instilled confidence in retailers about a decent holiday season. Although retail sales somewhat moderated in the month of November, retailers expect demand to pick up with Christmas around the corner.
No wonder the season, which accounts for a sizeable chunk of yearly revenues and profits, is a make or break time for retailers. Retail bellwethers are going extra mile to woo bargain hunters, through various means like early-hour store openings, smart promotional efforts and free shipping on online purchases.
Additionally, they are deploying resources to enhance omni-channel capacities, introducing brands, remodeling or refurbishing stores and expanding same-day delivery options to expedite the shopping process during the busiest part of the year. Retailers are even trying to absorb higher costs related to tariffs and keep consumers unaffected.
National Retail Federation envisions holiday retail sales to advance 3.8-4.2% this season (excluding automobiles, restaurants and gasoline). Online and other non-store sales are expected to grow 11-14%. Last year, holiday sales rose just 2.1%, per NRF. Data compiled by Deloitte indicates that holiday sales are projected to increase 4.5-5% between November 2019 and January 2020. Meanwhile, e-commerce sales are estimated to improve 14-18%.
Having said that we believe the sector offers lucrative opportunities for investors to make their holidays special. Here we have highlighted four Retail-Wholesale stocks with a favorable combination of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B.
We also suggest investing in Target Corporation TGT with a long-term earnings growth rate of 7.5% and a VGM Score of B. This general merchandise retailer has a trailing four-quarter positive earnings surprise of 8.6%, on average. The stock, which sports a Zacks Rank #1, has soared 95.5% so far in 2019.
Another stock worth considering is RH RH, which has a long-term earnings growth rate of 17.8%. This home furnishing retailer has a trailing four-quarter positive earnings surprise of 17.6%, on average. The stock, which flaunts a Zacks Rank #1, has a VGM Score of B. Moreover, shares of the company have appreciated 84.3% year to date.
Investors can also count on Best Buy Co., Inc. BBY, which operates as a retailer of technology products, services, and solutions. This Zacks Rank #2 company has a long-term earnings growth rate of 8.7% and a VGM Score of B. The company has a trailing four-quarter positive earnings surprise of 9.9%, on average. Notably, shares of the company have climbed 65.7% year to date.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2020?
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Click to get this free report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research