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These 4 Retail Stocks Have Crushed the Market in 2019

Sumit Singh

The year 2019 has been a roller coaster ride for the Retail-Wholesale sector, which has witnessed fundamental changes in its dynamics with technology taking the center stage and online shopping gaining preference over traditional ways. The sector, which occupies top 19% position in the list of Zacks sectors (three out of 16), has gained roughly 23.2% so far in the year.

The health of the sector is closely tied to the purchasing power of consumers. Factors such as steady wage gains and solid labor market have been contributing toward improving consumer sentiment. This has to a large extent translated into higher consumer spending, which is a major positive for retailers. The main economic driver, consumer spending, grew at a pace of 2.9% during third-quarter 2019.

Certainly, retailers have taken initiatives from opening smaller-format stores to bringing in new loyalty program and from embracing new technologies to providing fast delivery options on online purchase or via apps. They have been looking at every nook and cranny for solutions to accommodate and evolve with changes in the retail landscape. 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.

With right strategies in right place and right direction, there are stocks that have displayed outstanding performance on the bourses and crushed the market. Here are four stocks you can count upon. We have shortlisted them on the basis of a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. Also, these stocks have comfortably outpaced the S&P 500 index that rose 26% in the year-to-date period.

4 Prominent Picks

Boot Barn Holdings, Inc. BOOT, a lifestyle retail chain, 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 22.7%, on average. The company, with a long-term earnings growth rate of 17%, has seen its shares surged 148.6% so far in the year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Another stock worth considering is Lithia Motors, Inc. LAD, which has a long-term earnings growth rate of 9.7%. This automotive retailer has a trailing four-quarter positive earnings surprise of 7.6%, on average. The stock, which flaunts a Zacks Rank #1, has a VGM Score of A. Moreover, shares of the company have appreciated 103.7% year to date.

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 94.3% so far in 2019.

You can also add Zumiez Inc. ZUMZ to your portfolio. This specialty retailer of apparel, footwear, accessories, and hardgoods has a long-term earnings growth rate of 12% and a VGM Score of B. This Zacks Rank #1 stock has a trailing four-quarter positive earnings surprise of 64.1%, on average. Moreover, the stock has increased 63.7% 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 A. The company has a trailing four-quarter positive earnings surprise of 9.9%, on average. Notably, shares of the company have increased 63.1% 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?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lithia Motors, Inc. (LAD) : Free Stock Analysis Report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
 
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