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Zacks Value Trader Highlights: Xcel Brands, Williams-Sonoma, J.Jill, Macy's and Bed Bath & Beyond

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For Immediate Release

Chicago, IL – June 7, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

Retail Stocks Are On Sale: Should You Bite?

Welcome to Episode #144 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

For retail stocks in 2019, it looks a lot like 2017 when retail was crushed amidst worries that they were all “doomed” by a resurging Amazon.

It never happened and the stocks rallied fiercely in early 2018.

But now, in 2019, the worry isn’t Amazon but the new threats of tariffs and a possible recession. The tariffs make any imported goods more expensive and a recession usually leads to reduced consumer spending.

Neither one is good for the retailers which have been enjoying strong consumer confidence thanks to a 20-year low in the unemployment rate.

Retail Stocks are Down Big in 2019

With all the worries and uncertainty, it’s not surprising that the retail stocks, especially those in apparel and shoes, are down big so far this year.

The Apparel and Shoe industry, which consists of 39 companies on Zacks.com, is down 13.9% year-to-date. That’s a lot of pain compared to the S&P 500 which is up 12.7% in that same time period.

Over the last year, it’s even worse with Apparel and Shoes down 31.6% versus the S&P 500 up 4.1%.

How Do You Find Cheap Retailers?

You can screen by industry on Zacks.com. Zacks has 15 different subgroups in the retail sector, including Apparel and Shoes.

To look for cheap stocks, screen for a P/E under 10.

You can also use the Zacks Rank, including looking for #1 (Strong Buys) and #2 (Buys), to try and screen for rising earnings estimates.

In a screen including Zacks Rank #3 (Hold) stocks, along with the #1s and #2s, in the Apparel and Shoe industry, it returned 9 stocks that had P/Es under 10.

5 Cheap Retail Stocks Right Now

1.       Xcel Brands XELB is a media and consumer products company that only has a market cap of $24 million. Its revenue comes from licensing, e-commerce and wholesale of its 5 brands. The shares have fallen 57% over the last year and now trade with a forward P/E of just 3.3. It’s a Zacks Rank #1 (Strong Buy).

2.       Williams-Sonoma WSM shares aren’t as cheap as others as the stock got a boost off of the last earnings report. Still, it trades at just 12.5x.

3.       J.Jill JILL saw its full year earnings estimates slashed following a disappointing quarter where inventory rose 10% and sales fell. But it’s still cheap, with a forward P/E of just 7.5. However, those slashed earnings estimates mean it has a Zacks Rank of #4 (Sell).

4.       Macy’s M is back to trading with a forward P/E of just 6.9. Shares have sunk in 2019 but haven’t yet taken out the 2017 lows. It still pays a dividend, currently yielding 7%. But earnings are expected to fall this year and next.

5.       Bed Bath & Beyond BBBY has new management but can they turn it around? Shares are still cheap with a forward P/E of 6.9. It pays a dividend, yielding 4.1% but will the new management cut that? It’s a Zacks Rank #2 (Buy) as earnings estimates are mostly holding in place.

What else do you need to know about the retail stocks in 2019?

Listen into this week’s podcast to find out.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Media Contact

Zacks Investment Research

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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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J.Jill, Inc. (JILL) : Free Stock Analysis Report
Xcel Brands, Inc (XELB) : Free Stock Analysis Report
Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY) : Free Stock Analysis Report
Macy's, Inc. (M) : Free Stock Analysis Report
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