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4 Stocks to Buy on Solid Rebound in January Retail Sales
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The retail sector has had a hard time as soaring prices compelled people to spend cautiously. However, sales bounced back in January as inflation showed signs of easing. Demand is still high, which is helping boost retail sales. Moreover, the labor market is still going strong despite the growing inflationary pressure.
This is helping people as purchasing power has continued to increase with new job additions to the economy. Given this situation, stocks like Tapestry, Inc. (TPR - Free Report) , Conagra Brands, Inc. (CAG - Free Report) , Campbell Soup Company (CPB - Free Report) and Arhaus, Inc. (ARHS - Free Report) are likely to benefit from a surge in retail sales.
Retail Sales Rebound
Retail sales in the United States rose a solid 3% month over month in January, beating economists’ expectations of a rise of 1.9%, the Commerce Department said on Feb 15. January’s jump follows a 1.1% decline in December. Excluding autos, retail sales jumped 2.3%, which was also higher than the expectations of a jump of 0.9%.
The impressive numbers reported in January were driven by sales in food services and drinking places, which surged 7.2% month over month. Sales at motor dealers and parts dealers increased 5.9%, while sales at furniture and furnishings stores climbed 4.4%. Sales at electronics and appliance stores rose 3.5%.
However, receipts at gas stations remained flat despite gas prices increasing 2.4%.
E-commerce, which has been playing a key role in driving retail sales since the onset of the pandemic, once again helped the sector, as online sales rose 1.3%. E-commerce has turned out to be the most preferred mode of shopping.
The pandemic saw millions shopping from home in order to maintain social distancing on fears of contracting the COVID-19 virus. This made them finally realize the safety and convenience of shopping online. The trend has continued since then and has been helping the retail sector in a major way.
Moreover, people have been spending more freely over the past couple of months as inflation has been showing signs of easing. Although the consumer price index (CPI), the preferred gauge of measuring inflation, increased 0.5% in January, inflation has slowed in the prior months.
Another reason that has been helping the retail sector is the solid job additions to the economy. The job market is still doing well despite rising inflationary pressures that have forced individuals to spend cautiously.
The labor market remained resilient in 2022 and this year too, it has been good so far.
The Labor Department reported that nonfarm payrolls increased a solid 517,000, which came in above economists' expectations of a modest 187,000 increase. This follows job gains of 260,000 in December.
This came as the unemployment rate fell to 3.4%, its lowest level since 1969. With jobs being added at an aggressive pace, people will get more money in hand, which will help them spend more.
Our Choices
This is thus the right opportunity to invest in retail stocks that have both a strong offline and online presence.
Tapestry, Inc. is a designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches.
Tapestry’sexpected earnings growth rate for the current year is 7.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. TPR presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with a refined focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it per the preference pattern of the end-users.
Conagra Brands’ expected earnings growth rate for the current year is 12.7%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. CAG presently sports a Zacks Rank #1.
Campbell Soup Company, together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products. CPB’s brands are sold in approximately 120 countries, and its principal geographies include North America, France, Germany, Belgium and Australia.
Campbell Soup Company’s expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. CPB presently has a Zacks Rank #2.
Arhaus, Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. ARHS offers an assortment of heirloom quality products. Arhaus is based in BOSTON HEIGHTS, OH.
Arhaus Inc.’s expected earnings growth rate for the current year is 26.1%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 60 days. ARHS presently sports a Zacks Rank #1.
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4 Stocks to Buy on Solid Rebound in January Retail Sales
The retail sector has had a hard time as soaring prices compelled people to spend cautiously. However, sales bounced back in January as inflation showed signs of easing. Demand is still high, which is helping boost retail sales. Moreover, the labor market is still going strong despite the growing inflationary pressure.
This is helping people as purchasing power has continued to increase with new job additions to the economy. Given this situation, stocks like Tapestry, Inc. (TPR - Free Report) , Conagra Brands, Inc. (CAG - Free Report) , Campbell Soup Company (CPB - Free Report) and Arhaus, Inc. (ARHS - Free Report) are likely to benefit from a surge in retail sales.
Retail Sales Rebound
Retail sales in the United States rose a solid 3% month over month in January, beating economists’ expectations of a rise of 1.9%, the Commerce Department said on Feb 15. January’s jump follows a 1.1% decline in December. Excluding autos, retail sales jumped 2.3%, which was also higher than the expectations of a jump of 0.9%.
The impressive numbers reported in January were driven by sales in food services and drinking places, which surged 7.2% month over month. Sales at motor dealers and parts dealers increased 5.9%, while sales at furniture and furnishings stores climbed 4.4%. Sales at electronics and appliance stores rose 3.5%.
However, receipts at gas stations remained flat despite gas prices increasing 2.4%.
E-commerce, which has been playing a key role in driving retail sales since the onset of the pandemic, once again helped the sector, as online sales rose 1.3%. E-commerce has turned out to be the most preferred mode of shopping.
The pandemic saw millions shopping from home in order to maintain social distancing on fears of contracting the COVID-19 virus. This made them finally realize the safety and convenience of shopping online. The trend has continued since then and has been helping the retail sector in a major way.
Moreover, people have been spending more freely over the past couple of months as inflation has been showing signs of easing. Although the consumer price index (CPI), the preferred gauge of measuring inflation, increased 0.5% in January, inflation has slowed in the prior months.
Another reason that has been helping the retail sector is the solid job additions to the economy. The job market is still doing well despite rising inflationary pressures that have forced individuals to spend cautiously.
The labor market remained resilient in 2022 and this year too, it has been good so far.
The Labor Department reported that nonfarm payrolls increased a solid 517,000, which came in above economists' expectations of a modest 187,000 increase. This follows job gains of 260,000 in December.
This came as the unemployment rate fell to 3.4%, its lowest level since 1969. With jobs being added at an aggressive pace, people will get more money in hand, which will help them spend more.
Our Choices
This is thus the right opportunity to invest in retail stocks that have both a strong offline and online presence.
Tapestry, Inc. is a designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches.
Tapestry’sexpected earnings growth rate for the current year is 7.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. TPR presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with a refined focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it per the preference pattern of the end-users.
Conagra Brands’ expected earnings growth rate for the current year is 12.7%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. CAG presently sports a Zacks Rank #1.
Campbell Soup Company, together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products. CPB’s brands are sold in approximately 120 countries, and its principal geographies include North America, France, Germany, Belgium and Australia.
Campbell Soup Company’s expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. CPB presently has a Zacks Rank #2.
Arhaus, Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. ARHS offers an assortment of heirloom quality products. Arhaus is based in BOSTON HEIGHTS, OH.
Arhaus Inc.’s expected earnings growth rate for the current year is 26.1%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 60 days. ARHS presently sports a Zacks Rank #1.