The Zacks Analyst Blog Highlights: Boot Barn, Levi Strauss, Best Buy, Macy's and Tilly's
For Immediate Release
Chicago, IL – November 2, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Boot Barn Holdings, Inc. BOOT, Levi Strauss & Co. LEVI, Best Buy Co., Inc. BBY, Macy's, Inc. M and Tilly's, Inc. TLYS.
Here are highlights from Monday’s Analyst Blog:
Holiday Retail Sales to Hit Record High: 5 Stocks to Buy
The retail sector which has been struggling to get back on its feet is likely to witness the best sales this holiday season, according to the National Retail Federation (“NRF”). Retailers too are looking forward to making the most of important days like Black Friday, Cyber Monday and Christmas Eve.
After taking a bad hit during the peak of the pandemic last year, the retail sector has somewhat bounced back. It still has a long way to go to get back to the pre-pandemic levels. That might just become a shade easier with this holiday season expected to give a big push to sales.
Holiday Sales Expected to Rise
According to the NRF, holiday season sales this year are expected to break all previous records during November and December and grow 8.5% to 10.5% to between $843.4 billion and $859 billion year over year. Holiday sales had grown 8.2% in 2020 to hit a record of $770 billion.
Last year, holiday sales were good despite the pandemic creating havoc. However, with more people being vaccinated and the restriction eased, sales are likely to see a further jump, shattering all previous records.
Retailers too are hopeful about sales getting a massive boost during this period, which has seen them going on a hiring spree. According to the NRF, retailers are expected to hire between 500,000 and 665,000 seasonal workers compared to 486,000 hired in 2020.
E-commerce to Drive Sales
E-commerce played an important role last year in driving sales. In fact, this has been the trend over the past few years but last year millions relied on e-commerce as the pandemic had prevented them from stepping outdoors and several brick-and-mortar stores too remained closed.
With the pandemic far from over and people finally having realized the comfort of shopping online, the NRF predicts online and other non-store sales to jump 11% to 15% to between $218.3 billion and $226 billion compared to $196.7 billion in 2020.
Rising income coupled with stronger-than-ever savings are making people spend more, which is likely to help sales this time around.
Moreover, the holiday season this time is starting early, with many retailers having begun holiday sales as early as September. Also companies like Amazon are securing additional space for storage of products, anticipating higher demand.
Our Choices
Given this scenario, it would be ideal to invest in retail stocks with a strong online presence. We have hand-picked five stocks for you. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn Holdings operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. The company's products include boots, denim, western shirts, cowboy hats, belts and belt buckles, and western-style jewelry and accessories.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 36% over the past 60 days. Boot Barn Holdings carries a Zacks Rank #1.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 8.2% over the past 60 days. Levi Strauss sports a Zacks Rank #2.
Best Buy is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances and related services.
The company’s expected earnings growth rate for next year is 26.9%. The Zacks Consensus Estimate for current-year earnings improved 2.7% over the past 60 days. The company has a Zacks Rank #2.
Macy's is in the process of a complete makeover and has outlined plans under its three-year Polaris Strategy to adapt better to the new retail ecosystem. Notably, the company is banking on Backstage locations, Vendor Direct, Store Pickup, Loyalty Program, Growth150 stores, the mobile first strategy and Destination Businesses.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 0.5% over the past 60 days. The company sports a Zacks Rank #1.
Tilly's is a specialty retailer in the action sports industry selling clothing, shoes and accessories. The company distributes t-shirts, sweatshirts, jackets, shorts, pants, jeans, sweaters, swimwear, shoes and accessories for men, women and kids through its website.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 26.9% over the past 60 days. It has a Zacks rank #1.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Macy's, Inc. (M) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
Tilly's, Inc. (TLYS) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
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