4 Retail Stocks to Put in Your Christmas Hamper
With Christmas just a couple of weeks away, bargain hunters are on the prowl again. And to make things merrier for investors, we have come up with four favorably ranked Retail-Wholesale stocks.
Retail Seems to be in Season’s Demand
Improving labor market, rising disposable income and perked up consumer sentiment have ignited hopes of a robust holiday season for retailers. As the season accounts for a sizeable chunk of yearly revenues and profits, retail bellwethers are going the extra mile, be it through early-hour store openings, huge discounts, promotional strategies and free shipping on online purchases.
Retailers 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. Additionally, retailers are rationalizing supply chain, improving store-related technology and augmenting ship-from-store capabilities.
Overall, the National Retail Federation anticipates a rise of 4.3-4.8% in November and December sales (excluding autos, gas and restaurant) to $717.45-$720.89 billion. Data compiled by eMarketer suggests brick-and-mortar sales rise of 4.4% to $878.38 billion with retail e-commerce holiday season sales anticipated to increase 16.6% to $123.73 billion.
So, start filling your holiday hampers with stocks that have a fair chance to outperform. Indeed, shopping season is likely to be more blissful for retailers with Christmas falling on Tuesday, 32 days after Thanksgiving. 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.
4 Tempting Picks
Fossil Group, Inc. FOSL, which designs, develops, markets and distributes consumer fashion accessories, is a solid bet with a VGM Score of B. The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters. Moreover, this Zacks Rank #1 stock has more than doubled in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
RH RH, a home furnishing retailer, is another lucrative option. The stock has a long-term earnings growth rate of 21.9% and a VGM Score of A. We note that in a year, the stock has soared about 34%. The company has delivered an average positive earnings surprise of 23.5% in the trailing four quarters and sports a Zacks Rank #1.
Investors can count on BJ's Restaurants, Inc. BJRI, whose shares have increased roughly 45% in a year. This operator of casual dining restaurants has delivered an average positive earnings surprise of 33.2% in the trailing four quarters. This Zacks Rank #2 company has a long-term earnings growth rate of 14.5% and a VGM Score of B.
We also suggest investing in Advance Auto Parts, Inc. AAP, which has a long-term earnings growth rate of 12.1% and a VGM Score of A. In a year, this Zacks Rank #2 stock has surged roughly 62%. Moreover, this provider of automotive replacement parts, batteries and accessories has an average positive earnings surprise of 9.5% for the preceding four quarters.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
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Restoration Hardware Holdings Inc. (RH) : Free Stock Analysis Report
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