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5 Retail Stocks to Buy on a Promising Holiday Season
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The retail sector is still struggling to get back on its feet, with the COVID-19 pandemic hampering business for almost one-and-a-half years now. However, sentiments have been upbeat lately with the holiday season approaching.
The holiday season is one of the most important periods for retailers in their annual calendar. And predictions are that sales will once again be robust, with Black Friday projected to be the biggest shopping day this holiday season.
Retailers Bank on Black Friday
According to Sensormatic Solutions, Black Friday, which is on Nov 26, is expected to be the busiest shopping day this year. Although U.S. retail store traffic is down 18.6% this year from 2019, the overall holiday season is likely to be productive for retailers.
Black Friday, Super Saturday and the Thursday before Christmas generally take the first three sports for the busiest shopping days every holiday season. This year too, Black Friday is likely to lead the race. Moreover, the holiday season will begin early this year, much like in 2020, which willlikely help retailerseven more.
For the past few years, the holiday season has been starting much before Thanksgiving. According to Mastercard SpendingPulse, the "75 Days of Christmas" holiday season will begin in October, with sales expected to grow 6.8% during this period.
Great Holiday Season Expected
According to Mastercard SpendingPulse, this holiday seasonis expected to hit a record high both in terms of percentage points and dollar gains, despite the pandemic. Sales between Nov 1 through Christmas Eve are projected to rise 7.4% from 2020 and 11.1% from 2019. Pent-up savings coupled with government stimulus arelikely to strengthen the spending power of consumers, according to the study.
E-commerce, whichhas been driving holiday sales for the past few years, willonce again play an important role. With the pandemic far from over,people will prefer shopping online whether or not they have taken the COVID-19 vaccine. Online revenues are expected to jump 7.6% year over year and 57% from 2019.
Not just the holiday season, e-commerce has been helping retail for quite some time now. Online sales in August grew 8.1% month over month and 82% from the previous year.
Our Choices
The retail sector is slowly trying to get back on its feet and the upcoming holiday season is likely to help boost sales.This is thus the right opportunity to invest in retail stocks that have a strong online presence. We have shortlisted 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.
Express, Inc. is a specialty retailer of women's and men's apparel in the United States. The company operates retail outlets in high-traffic shopping malls, lifestyle centers and street locations across the United States.
The company’s expected earnings growth rate for the current year is 95.9%. The Zacks Consensus Estimate for current-year earnings improved 56.5% over the past 30 days. Express carries a Zacks Rank #2.
Levi Strauss & Co. (LEVI - Free Report) 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 has improved 14.4% over the past 30 days. Levi Strauss has a Zacks Rank #2.
The Children’s Place, Inc. (PLCE - Free Report) sells apparel, footwear, accessories and other items for children; designs; contracts to manufacture; and sells merchandise under the brand names “The Children’s Place,” “Place,” “Baby Place” and “Gymboree.”
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 7.9% over the past 30 days. The Children’s Place carries a Zacks Rank #1.
Tillys, Inc. (TLYS - Free Report) 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 has improved 27.4% over the past 30 days. Tillys sports a Zacks Rank #1.
Macy’s, Inc. (M - Free Report) is an omnichannel retail organization operating stores, websites and mobile applications under three brands Macy's, Bloomingdale's and bluemercury. It trades in a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods in 43 states, the District of Columbia, Guam and Puerto Rico.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 30 days. Macy’s sports a Zacks Rank #1.
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5 Retail Stocks to Buy on a Promising Holiday Season
The retail sector is still struggling to get back on its feet, with the COVID-19 pandemic hampering business for almost one-and-a-half years now. However, sentiments have been upbeat lately with the holiday season approaching.
The holiday season is one of the most important periods for retailers in their annual calendar. And predictions are that sales will once again be robust, with Black Friday projected to be the biggest shopping day this holiday season.
Retailers Bank on Black Friday
According to Sensormatic Solutions, Black Friday, which is on Nov 26, is expected to be the busiest shopping day this year. Although U.S. retail store traffic is down 18.6% this year from 2019, the overall holiday season is likely to be productive for retailers.
Black Friday, Super Saturday and the Thursday before Christmas generally take the first three sports for the busiest shopping days every holiday season. This year too, Black Friday is likely to lead the race. Moreover, the holiday season will begin early this year, much like in 2020, which willlikely help retailerseven more.
For the past few years, the holiday season has been starting much before Thanksgiving. According to Mastercard SpendingPulse, the "75 Days of Christmas" holiday season will begin in October, with sales expected to grow 6.8% during this period.
Great Holiday Season Expected
According to Mastercard SpendingPulse, this holiday seasonis expected to hit a record high both in terms of percentage points and dollar gains, despite the pandemic. Sales between Nov 1 through Christmas Eve are projected to rise 7.4% from 2020 and 11.1% from 2019. Pent-up savings coupled with government stimulus arelikely to strengthen the spending power of consumers, according to the study.
E-commerce, whichhas been driving holiday sales for the past few years, willonce again play an important role. With the pandemic far from over,people will prefer shopping online whether or not they have taken the COVID-19 vaccine. Online revenues are expected to jump 7.6% year over year and 57% from 2019.
Not just the holiday season, e-commerce has been helping retail for quite some time now. Online sales in August grew 8.1% month over month and 82% from the previous year.
Our Choices
The retail sector is slowly trying to get back on its feet and the upcoming holiday season is likely to help boost sales.This is thus the right opportunity to invest in retail stocks that have a strong online presence. We have shortlisted 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.
Express, Inc. is a specialty retailer of women's and men's apparel in the United States. The company operates retail outlets in high-traffic shopping malls, lifestyle centers and street locations across the United States.
The company’s expected earnings growth rate for the current year is 95.9%. The Zacks Consensus Estimate for current-year earnings improved 56.5% over the past 30 days. Express carries a Zacks Rank #2.
Levi Strauss & Co. (LEVI - Free Report) 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 has improved 14.4% over the past 30 days. Levi Strauss has a Zacks Rank #2.
The Children’s Place, Inc. (PLCE - Free Report) sells apparel, footwear, accessories and other items for children; designs; contracts to manufacture; and sells merchandise under the brand names “The Children’s Place,” “Place,” “Baby Place” and “Gymboree.”
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 7.9% over the past 30 days. The Children’s Place carries a Zacks Rank #1.
Tillys, Inc. (TLYS - Free Report) 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 has improved 27.4% over the past 30 days. Tillys sports a Zacks Rank #1.
Macy’s, Inc. (M - Free Report) is an omnichannel retail organization operating stores, websites and mobile applications under three brands Macy's, Bloomingdale's and bluemercury. It trades in a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods in 43 states, the District of Columbia, Guam and Puerto Rico.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 30 days. Macy’s sports a Zacks Rank #1.