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The Zacks Analyst Blog Highlights Chico's FAS, Arhaus, Casey's General Stores and Sprouts Farmers Market
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For Immediate Release
Chicago, IL – January 3, 2023 – 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: Chico's FAS, Inc. , Arhaus, Inc. (ARHS - Free Report) , Casey's General Stores, Inc. (CASY - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Fill Your First Shopping Cart of 2023 with These 4 Retail Stocks
The holiday season has turned out to be a blissful one as consumers filled their shopping carts. Eagerness among consumers to venture out and shop fueled demand across a diverse set of categories. No doubt, retailers seemed to have addressed logistics as well as inventory issues to meet the festive demand efficiently, be it offline or online.
Stimulus savings from last year, steady wage gains and a lower unemployment rate kept demand alive, even as consumers navigate soaring prices and high borrowing costs. While bargain hunters looked for eye-popping deals, retailers left no stone unturned to make the most of the season.
U.S. Holiday Retail Sales Surge
A report by Mastercard SpendingPulse indicates that holiday retail sales, excluding automotive — from Nov 1 through Dec 24 — increased 7.6% year over year. However, the rate of growth decelerated from 8.5% registered last year, thanks to cautious consumer behavior.
While in-store sales jumped 6.8% year over year, online sales rose 10.6% and accounted for approximately 21.6% of overall retail sales, up from about 20.9% in 2021 and 20.6% in 2020. Clearly, soaring e-commerce sales powered the holiday sales results.
Demand for apparel remains decent this season, with sales rising 4.4%. Moreover, people preferred eating outside, as restaurant sales increased 15.1%. Department stores registered sales growth of 1%, per Mastercard SpendingPulse. However, sales in the electronics and jewelry categories remained soft, declining 5.3% and 5.4%, respectively.
Retailers Ultimate Beneficiary
No wonder the holiday season, which accounts for a sizable chunk of yearly revenues, is a make-or-break for retailers. Evidently, retailers such as Chico's FAS, Inc., Arhaus, Inc., Casey's General Stores, Inc. and Sprouts Farmers Market, Inc. have been channelizing their strength and making strategic investments to provide consumers fast, convenient and safe shopping experience.
Retailers have been increasing product visibility on online platforms, enhancing customer engagement on social channels and making logistics improvements.
The aforementioned stocks look well-positioned based on their sound fundamentals and earnings growth prospects. These stocks have either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
4 Prominent Picks
Investors can count on Chico's FAS. This Florida-based fashion retailer looks to become a “digital-first, customer-led” company, with a strong portfolio of three unique brands, namely, Chico's, WHBM and Soma, which position it well to expand its customer base and market share. Product enhancement, planned inventories, operating discipline and marketing strategies have been helping to drive full-price selling, lower markdowns and produce a higher gross margin.
Chico's has a VGM Score of A. This Zacks Rank #1 company has a trailing four-quarter earnings surprise of 87.5%, on average. The Zacks Consensus Estimate for current financial year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago period.
Arhaus is another potential pick. Strong consumer demand, new collections, brand awareness and the ramp-up of new showrooms have been driving Arhus’ top-line performance. The company plans to add five to seven new traditional showrooms per year.
Arhaus, a lifestyle brand and premium retailer in the home furnishings market, has a VGM Score of A. The Zacks Consensus Estimate for current financial year sales and EPS suggests growth of 49.1% and 21.7%, respectively, from the year-ago period. This Zacks Rank #2 company has a long-term earnings growth expectation of 14.3%. ARHS has a trailing four-quarter earnings surprise of 112%, on average.
Casey's General, a leading convenience store chain, is worth betting on. Casey's price and product optimization strategies, increased penetration of private brands and digital engagements comprising mobile app and online ordering capabilities are commendable. The curbside pickup option and Casey’s reward program have been benefiting the overall performance.
Casey's has a VGM Score of A. The Zacks Consensus Estimate for current financial year sales and EPS suggests growth of 23.8% and 15.5%, respectively, from the year-ago period. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 7.2%, on average.
You may invest in Sprouts Farmers Market. This renowned specialty retailer of fresh, natural and organic food looks quite promising. The company’s focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bode well. It has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores.
Impressively, Sprouts Farmers has a trailing four-quarter earnings surprise of 10%, on average. This Zacks Rank #2 company has an estimated long-term earnings growth rate of 7.3%. The Zacks Consensus Estimate for Sprouts Farmers’ current financial year sales and EPS suggests growth of 4.6% and 11.9%, respectively, from the year-ago period.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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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The Zacks Analyst Blog Highlights Chico's FAS, Arhaus, Casey's General Stores and Sprouts Farmers Market
For Immediate Release
Chicago, IL – January 3, 2023 – 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: Chico's FAS, Inc. , Arhaus, Inc. (ARHS - Free Report) , Casey's General Stores, Inc. (CASY - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Fill Your First Shopping Cart of 2023 with These 4 Retail Stocks
The holiday season has turned out to be a blissful one as consumers filled their shopping carts. Eagerness among consumers to venture out and shop fueled demand across a diverse set of categories. No doubt, retailers seemed to have addressed logistics as well as inventory issues to meet the festive demand efficiently, be it offline or online.
Stimulus savings from last year, steady wage gains and a lower unemployment rate kept demand alive, even as consumers navigate soaring prices and high borrowing costs. While bargain hunters looked for eye-popping deals, retailers left no stone unturned to make the most of the season.
U.S. Holiday Retail Sales Surge
A report by Mastercard SpendingPulse indicates that holiday retail sales, excluding automotive — from Nov 1 through Dec 24 — increased 7.6% year over year. However, the rate of growth decelerated from 8.5% registered last year, thanks to cautious consumer behavior.
While in-store sales jumped 6.8% year over year, online sales rose 10.6% and accounted for approximately 21.6% of overall retail sales, up from about 20.9% in 2021 and 20.6% in 2020. Clearly, soaring e-commerce sales powered the holiday sales results.
Demand for apparel remains decent this season, with sales rising 4.4%. Moreover, people preferred eating outside, as restaurant sales increased 15.1%. Department stores registered sales growth of 1%, per Mastercard SpendingPulse. However, sales in the electronics and jewelry categories remained soft, declining 5.3% and 5.4%, respectively.
Retailers Ultimate Beneficiary
No wonder the holiday season, which accounts for a sizable chunk of yearly revenues, is a make-or-break for retailers. Evidently, retailers such as Chico's FAS, Inc., Arhaus, Inc., Casey's General Stores, Inc. and Sprouts Farmers Market, Inc. have been channelizing their strength and making strategic investments to provide consumers fast, convenient and safe shopping experience.
Retailers have been increasing product visibility on online platforms, enhancing customer engagement on social channels and making logistics improvements.
The aforementioned stocks look well-positioned based on their sound fundamentals and earnings growth prospects. These stocks have either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
4 Prominent Picks
Investors can count on Chico's FAS. This Florida-based fashion retailer looks to become a “digital-first, customer-led” company, with a strong portfolio of three unique brands, namely, Chico's, WHBM and Soma, which position it well to expand its customer base and market share. Product enhancement, planned inventories, operating discipline and marketing strategies have been helping to drive full-price selling, lower markdowns and produce a higher gross margin.
Chico's has a VGM Score of A. This Zacks Rank #1 company has a trailing four-quarter earnings surprise of 87.5%, on average. The Zacks Consensus Estimate for current financial year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago period.
Arhaus is another potential pick. Strong consumer demand, new collections, brand awareness and the ramp-up of new showrooms have been driving Arhus’ top-line performance. The company plans to add five to seven new traditional showrooms per year.
Arhaus, a lifestyle brand and premium retailer in the home furnishings market, has a VGM Score of A. The Zacks Consensus Estimate for current financial year sales and EPS suggests growth of 49.1% and 21.7%, respectively, from the year-ago period. This Zacks Rank #2 company has a long-term earnings growth expectation of 14.3%. ARHS has a trailing four-quarter earnings surprise of 112%, on average.
Casey's General, a leading convenience store chain, is worth betting on. Casey's price and product optimization strategies, increased penetration of private brands and digital engagements comprising mobile app and online ordering capabilities are commendable. The curbside pickup option and Casey’s reward program have been benefiting the overall performance.
Casey's has a VGM Score of A. The Zacks Consensus Estimate for current financial year sales and EPS suggests growth of 23.8% and 15.5%, respectively, from the year-ago period. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 7.2%, on average.
You may invest in Sprouts Farmers Market. This renowned specialty retailer of fresh, natural and organic food looks quite promising. The company’s focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bode well. It has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores.
Impressively, Sprouts Farmers has a trailing four-quarter earnings surprise of 10%, on average. This Zacks Rank #2 company has an estimated long-term earnings growth rate of 7.3%. The Zacks Consensus Estimate for Sprouts Farmers’ current financial year sales and EPS suggests growth of 4.6% and 11.9%, respectively, from the year-ago period.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.