We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Abercrombie & Fitch, Sprouts Farmers Market, Walmart and Burlington Stores
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 21, 2024 – 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: Abercrombie & Fitch Co. (ANF - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , Walmart Inc. (WMT - Free Report) and Burlington Stores, Inc. (BURL - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Retail Stocks to Buy Amid Signs of Cautious Consumer Spending
Retail sales in the United States showed minimal growth in May, reflecting ongoing consumer struggles with high inflation and interest rates. The Commerce Department's report revealed that sales rose a modest 0.1% on a month-on-month basis, a slight improvement over the revised 0.2% decline seen in April. Despite this small increase, the year-over-year growth rate stood at 2.3%.
May's retail sales inched up to $703.1 billion, indicating a subdued consumer environment. The modest rise was driven partly by a rebound in sales from motor vehicle and parts dealers, though this was offset by a notable decline in sales at gas stations, attributed to falling gas prices.
Economists noted that while the slight uptick in retail sales was better than the previous month's decline, it still painted a picture of a cautious consumer environment. The report suggests that Americans are tightening their belts.
Interestingly, the subdued retail sales report might have a silver lining for monetary policy. Softer-than-expected consumer spending could prompt the Federal Reserve to reconsider its stance on interest rates. Market pundits anticipate two rate cuts this year, though recent Fed meetings suggest the likelihood of just one.
As such, the slight increase in retail sales, while not robust, provides a glimmer of hope for a possible easing of monetary policy, which, in turn, could support future growth.
Breaking Down the Sales Number
Motor vehicle and parts dealers experienced a 0.8% increase in sales. Electronics and appliance stores witnessed a marginal rise of 0.4% in sales. Sales at health and personal care stores rose 0.1%, and non-store retailers, representing the online sphere, reported a 0.8% increase.
Clothing and clothing accessories outlets witnessed a jump of 0.9%. Miscellaneous stores reported a 0.4% increase, and sales at sporting goods, hobbies, musical instruments and bookstores jumped 2.8%. General merchandise stores showed marginal growth of 0.1%.
On the contrary, furniture and home furnishing stores experienced a notable 1.1% decline in sales. Building material and supplies dealers witnessed a 0.8% drop, while food and beverage stores saw a slight decrease of 0.2%. Gasoline stations witnessed a more pronounced drop of 2.2% in receipts. Food services and drinking places witnessed a 0.4% fall in sales.
4 Prominent Picks
Abercrombie & Fitch Co. is a potential pick. By integrating digital and physical retail experiences, Abercrombie & Fitch offers a seamless shopping experience, driving higher customer satisfaction and loyalty. Moreover, strategic marketing initiatives, particularly targeted campaigns in key markets, have been highly effective in boosting brand visibility and customer acquisition. The introduction of innovative product lines meets specific customer needs and broadens the brand's appeal. Abercrombie & Fitch's regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 210.3%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch's current financial-year sales and earnings suggests growth of 10.4% and 47.3% from the year-ago period. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Sprouts Farmers Market, Inc. is worth betting on. Through product innovation, targeted marketing and competitive pricing, Sprouts Farmers ensures that its offerings resonate with its diverse customer base. The company's dedication to natural and organic products has been a key strategy, recognizing the surging demand for healthier options and expanding its presence in this segment. Additionally, Sprouts Farmers has invested in expanding its private-label offerings. This emphasis on private-label items not only sets the company apart from competitors but also fosters customer loyalty by offering unique and high-quality products.
The Zacks Consensus Estimate for Sprouts Farmers' current fiscal sales and EPS suggests growth of 8% and 9.9%, respectively, from the year-ago reported figure. SFM, which sports a Zacks Rank #1, delivered a trailing four-quarter earnings surprise of 9.2%, on average.
Investors can count on Walmart Inc.. This omnichannel retail giant has been diligently working to strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems. Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment. Innovation extends to its supply chain, wherein the company is enhancing capacity and introducing cutting-edge solutions.
The Zacks Consensus Estimate for Walmart's current financial-year sales and earnings suggests growth of 4.2% and 9%, respectively, from the year-ago reported numbers. This Zacks Rank #2 (Buy) company has a trailing four-quarter earnings surprise of 8.3%, on average.
Burlington Stores, Inc. is worth considering. The company has adeptly responded to the challenges in the retail landscape by strategically emphasizing recognizable brands, implementing the best pricing strategy and targeting trade-down shoppers. The implementation of strategic initiatives aimed at enhancing merchandising capabilities, operational efficiency and store optimization is likely to support revenue growth. By focusing on initiatives such as store relocations and downsizing, Burlington Stores aims to improve store productivity.
The Zacks Consensus Estimate for Burlington Stores' current fiscal sales and EPS suggests growth of 9.5% and 25.4%, respectively, from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 21.7%, on average.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Abercrombie & Fitch, Sprouts Farmers Market, Walmart and Burlington Stores
For Immediate Release
Chicago, IL – June 21, 2024 – 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: Abercrombie & Fitch Co. (ANF - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) , Walmart Inc. (WMT - Free Report) and Burlington Stores, Inc. (BURL - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Retail Stocks to Buy Amid Signs of Cautious Consumer Spending
Retail sales in the United States showed minimal growth in May, reflecting ongoing consumer struggles with high inflation and interest rates. The Commerce Department's report revealed that sales rose a modest 0.1% on a month-on-month basis, a slight improvement over the revised 0.2% decline seen in April. Despite this small increase, the year-over-year growth rate stood at 2.3%.
May's retail sales inched up to $703.1 billion, indicating a subdued consumer environment. The modest rise was driven partly by a rebound in sales from motor vehicle and parts dealers, though this was offset by a notable decline in sales at gas stations, attributed to falling gas prices.
Economists noted that while the slight uptick in retail sales was better than the previous month's decline, it still painted a picture of a cautious consumer environment. The report suggests that Americans are tightening their belts.
Interestingly, the subdued retail sales report might have a silver lining for monetary policy. Softer-than-expected consumer spending could prompt the Federal Reserve to reconsider its stance on interest rates. Market pundits anticipate two rate cuts this year, though recent Fed meetings suggest the likelihood of just one.
As such, the slight increase in retail sales, while not robust, provides a glimmer of hope for a possible easing of monetary policy, which, in turn, could support future growth.
Breaking Down the Sales Number
Motor vehicle and parts dealers experienced a 0.8% increase in sales. Electronics and appliance stores witnessed a marginal rise of 0.4% in sales. Sales at health and personal care stores rose 0.1%, and non-store retailers, representing the online sphere, reported a 0.8% increase.
Clothing and clothing accessories outlets witnessed a jump of 0.9%. Miscellaneous stores reported a 0.4% increase, and sales at sporting goods, hobbies, musical instruments and bookstores jumped 2.8%. General merchandise stores showed marginal growth of 0.1%.
On the contrary, furniture and home furnishing stores experienced a notable 1.1% decline in sales. Building material and supplies dealers witnessed a 0.8% drop, while food and beverage stores saw a slight decrease of 0.2%. Gasoline stations witnessed a more pronounced drop of 2.2% in receipts. Food services and drinking places witnessed a 0.4% fall in sales.
4 Prominent Picks
Abercrombie & Fitch Co. is a potential pick. By integrating digital and physical retail experiences, Abercrombie & Fitch offers a seamless shopping experience, driving higher customer satisfaction and loyalty. Moreover, strategic marketing initiatives, particularly targeted campaigns in key markets, have been highly effective in boosting brand visibility and customer acquisition. The introduction of innovative product lines meets specific customer needs and broadens the brand's appeal. Abercrombie & Fitch's regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 210.3%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch's current financial-year sales and earnings suggests growth of 10.4% and 47.3% from the year-ago period. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Sprouts Farmers Market, Inc. is worth betting on. Through product innovation, targeted marketing and competitive pricing, Sprouts Farmers ensures that its offerings resonate with its diverse customer base. The company's dedication to natural and organic products has been a key strategy, recognizing the surging demand for healthier options and expanding its presence in this segment. Additionally, Sprouts Farmers has invested in expanding its private-label offerings. This emphasis on private-label items not only sets the company apart from competitors but also fosters customer loyalty by offering unique and high-quality products.
The Zacks Consensus Estimate for Sprouts Farmers' current fiscal sales and EPS suggests growth of 8% and 9.9%, respectively, from the year-ago reported figure. SFM, which sports a Zacks Rank #1, delivered a trailing four-quarter earnings surprise of 9.2%, on average.
Investors can count on Walmart Inc.. This omnichannel retail giant has been diligently working to strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems. Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment. Innovation extends to its supply chain, wherein the company is enhancing capacity and introducing cutting-edge solutions.
The Zacks Consensus Estimate for Walmart's current financial-year sales and earnings suggests growth of 4.2% and 9%, respectively, from the year-ago reported numbers. This Zacks Rank #2 (Buy) company has a trailing four-quarter earnings surprise of 8.3%, on average.
Burlington Stores, Inc. is worth considering. The company has adeptly responded to the challenges in the retail landscape by strategically emphasizing recognizable brands, implementing the best pricing strategy and targeting trade-down shoppers. The implementation of strategic initiatives aimed at enhancing merchandising capabilities, operational efficiency and store optimization is likely to support revenue growth. By focusing on initiatives such as store relocations and downsizing, Burlington Stores aims to improve store productivity.
The Zacks Consensus Estimate for Burlington Stores' current fiscal sales and EPS suggests growth of 9.5% and 25.4%, respectively, from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 21.7%, on average.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.