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.
Retail sales in the United States inched up 1% sequentially in July 2024, following a downwardly revised 0.2% drop in June and way better than forecasts of a 0.3% gain. It is the biggest increase since January 2023, with sales at motor vehicle and part dealers rising the most (3.6%), followed by sales at electronics and appliance stores (1.6%).
Barring sales of food services, auto dealers, building materials stores and gasoline stations, sales rose 0.3%, compared to 0.9% in June and forecasts of 0.1%. Below we highlight a few areas and the related ETFs & stocks that may benefit handsomely from the retail sales.
Winning Areas
Electronics & Appliance Stores
Sales gained 1.6% sequentially in July and 5.2% year over year. Rise in electronics sales should boost semiconductor funds and stocks.
VanEck Vectors Semiconductor ETF (SMH - Free Report) – The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. The fund charges 35 bps in fees.
Best Buy (BBY - Free Report) – As far as stocks are concerned, investors can take a look at BBY. It is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances and related services. The fund has a Zacks Rank #2 (Buy).
Healthcare & Personal Care Stores
Sales gained 0.8% sequentially in July and 3.4% year over year.
Consumer Staples Select Sector SPDR ETF (XLP - Free Report) – The underlying Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index. The fund charges 9 bps in fees.
KimberlyClark (KMB - Free Report) – Kimberly-Clark Corporation is principally engaged in the manufacture and marketing of a wide range of consumer products around the world. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high-volume public facilities. The fund has a Zacks Rank #3.
Food & Beverage Stores
Sales gained 0.9% sequentially in July and 2.9% year over year.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) – The underlying MSCI USA IMI Consumer Staples Index represents the performance of the consumer staples sector in the U.S. equity market. The fund charges 8 bps in fees.
Pilgrim's Pride (PPC - Free Report) – Pilgrim's Pride Corporation is focusing on strengthening its Prepared Foods category. The category grew in the United States during the fourth quarter of 2019 on continued investments in R&D and sales as well as marketing of new product innovations. Also, the company has been increasing its product mix for organic category, including No-Antibiotics-Ever products, to cater customers' evolving tastes. The fund has a Zacks Rank #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Retail Sales Gains in July: ETFs & Stocks to Play
Retail sales in the United States inched up 1% sequentially in July 2024, following a downwardly revised 0.2% drop in June and way better than forecasts of a 0.3% gain. It is the biggest increase since January 2023, with sales at motor vehicle and part dealers rising the most (3.6%), followed by sales at electronics and appliance stores (1.6%).
Barring sales of food services, auto dealers, building materials stores and gasoline stations, sales rose 0.3%, compared to 0.9% in June and forecasts of 0.1%. Below we highlight a few areas and the related ETFs & stocks that may benefit handsomely from the retail sales.
Winning Areas
Electronics & Appliance Stores
Sales gained 1.6% sequentially in July and 5.2% year over year. Rise in electronics sales should boost semiconductor funds and stocks.
VanEck Vectors Semiconductor ETF (SMH - Free Report) – The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. The fund charges 35 bps in fees.
Best Buy (BBY - Free Report) – As far as stocks are concerned, investors can take a look at BBY. It is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances and related services. The fund has a Zacks Rank #2 (Buy).
Healthcare & Personal Care Stores
Sales gained 0.8% sequentially in July and 3.4% year over year.
Consumer Staples Select Sector SPDR ETF (XLP - Free Report) – The underlying Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index. The fund charges 9 bps in fees.
KimberlyClark (KMB - Free Report) – Kimberly-Clark Corporation is principally engaged in the manufacture and marketing of a wide range of consumer products around the world. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high-volume public facilities. The fund has a Zacks Rank #3.
Food & Beverage Stores
Sales gained 0.9% sequentially in July and 2.9% year over year.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) – The underlying MSCI USA IMI Consumer Staples Index represents the performance of the consumer staples sector in the U.S. equity market. The fund charges 8 bps in fees.
Pilgrim's Pride (PPC - Free Report) – Pilgrim's Pride Corporation is focusing on strengthening its Prepared Foods category. The category grew in the United States during the fourth quarter of 2019 on continued investments in R&D and sales as well as marketing of new product innovations. Also, the company has been increasing its product mix for organic category, including No-Antibiotics-Ever products, to cater customers' evolving tastes. The fund has a Zacks Rank #1 (Strong Buy).