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E-Commerce to Boost Holiday Retail Sales: 4 Stocks With Room to Grow
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The retail sector is making a steady rebound after sales slowed last year owing to inflationary pressure and higher borrowing costs. However, inflation has cooled sharply over the past few months, allowing consumers to continue spending.
E-commerce, which has largely been driving overall retail sales over the past few years, has been steadily rising lately, indicating that the economy is still on solid ground. The Federal Reserve recently announced its first rate cut in over four years. The rate cut ahead of the holiday season bodes well for the retail sector.
Given the positive outlook, investing in retail stocks with a strong online presence would be a prudent choice. Four such stocks are PC Connection, Inc. (CNXN - Free Report) , JD.com, Inc.(JD - Free Report) , Burlington Stores, Inc. (BURL - Free Report) and Abercrombie & Fitch (ANF - Free Report) . These stocks have seen positive earnings estimate revisions in the past 60 days. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Holiday Online Sales Projected to Grow
Online retail sales during the holiday season will grow at a faster pace in 2024 than they did last year, according to a new forecast from Adobe Analytics. Online sales are projected to jump 8.4% year over year, hitting $240.8 billion this holiday season, which typically falls between Nov. 1 and Dec. 31.
Online holiday sales totaled $221.8 billion in 2023, increasing 4.9% year over year. Shopping on mobile devices is projected to hit a new record high of $128.1 billion, increasing 12.8% year over year.
Online sales during Cyber Week, which is the five-day shopping period, including Thanksgiving, Black Friday and Cyber Monday, are projected to hit $40.6 billion, jumping 7% from the year-ago level and accounting for 16.9% of the overall holiday season sales.
According to Adobe, Cyber Monday is expected to remain the year’s biggest shopping day, driving a record $13.2 billion in sales, increasing 6.1% from year-ago levels.
Rate Cut to Boost Retail Stocks
The retail sector has shown solid resilience over the past few months amid price pressure. Retail sales grew 0.1% in August after rising the most in 18 months in July. Retail sales in July jumped a solid 1.1%.
Year over year, retail sales grew 2.1% in August, with online sales increasing 1.4% after declining 0.4% in the previous month. This came as the Federal Reserve announced its much-awaited rate cut last week.
The Federal Reserve announced a 50-basis point rate cut, the first since March 2020 and the biggest since 2008. A half percentage point rate cut is being seen as the Federal Reserve’s aggressive stance to help the economy make a soft landing.
The Fed’s announcement was cheered by investors. Market participants are hopeful about another 50-basis point rate cut by the end of this year. Lower borrowing rates bode well for the retail sector ahead of the holiday season as it will allow shoppers to spend freely and drive overall retail sales.
Retail Stocks to Benefit From the Holiday Season
PC Connection
PC Connection is a direct marketer of brand-name personal computers and related peripherals, software, and networking products to business, education, government, and consumer end users located primarily in the United States.
PC Connectionhas an expected earnings growth rate of 9.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6% over the past 60 days. CNXN currently carries a Zacks Rank #2.
Image Source: Zacks Investment Research
JD.com
JD.com, Inc. operates as an online direct sales company in China. JD, through its website www.jd.com and mobile applications, offers a selection of authentic products.
JD.com’s expected earnings growth rate for the current year is 27.2%. The Zacks Consensus Estimate for current-year earnings has improved 16.8% over the past 60 days. JD currently has a Zacks Rank #1.
Image Source: Zacks Investment Research
Burlington Stores
Burlington Stores functions as a retailer of branded apparel products and is a Fortune 500 company. BURL operates in the United States and Puerto Rico. Burlington Stores offers products such as ladies sportswear, menswear, youth apparel, baby furniture, accessories, home décor and gifts, and coats.
Burlington Stores’ expected earnings growth rate for the current year is 30.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. BURL presently carries a Zacks Rank #2.
Image Source: Zacks Investment Research
Abercrombie & Fitch
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East. ANF's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, Abercrombie kids and Hollister brands.
Abercrombie & Fitch’s expected earnings growth rate for the current year is 63.4%. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the past 60 days. ANF currently sports a Zacks Rank #1.
Image Source: Zacks Investment Research
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E-Commerce to Boost Holiday Retail Sales: 4 Stocks With Room to Grow
The retail sector is making a steady rebound after sales slowed last year owing to inflationary pressure and higher borrowing costs. However, inflation has cooled sharply over the past few months, allowing consumers to continue spending.
E-commerce, which has largely been driving overall retail sales over the past few years, has been steadily rising lately, indicating that the economy is still on solid ground. The Federal Reserve recently announced its first rate cut in over four years. The rate cut ahead of the holiday season bodes well for the retail sector.
Given the positive outlook, investing in retail stocks with a strong online presence would be a prudent choice. Four such stocks are PC Connection, Inc. (CNXN - Free Report) , JD.com, Inc.(JD - Free Report) , Burlington Stores, Inc. (BURL - Free Report) and Abercrombie & Fitch (ANF - Free Report) . These stocks have seen positive earnings estimate revisions in the past 60 days. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Holiday Online Sales Projected to Grow
Online retail sales during the holiday season will grow at a faster pace in 2024 than they did last year, according to a new forecast from Adobe Analytics. Online sales are projected to jump 8.4% year over year, hitting $240.8 billion this holiday season, which typically falls between Nov. 1 and Dec. 31.
Online holiday sales totaled $221.8 billion in 2023, increasing 4.9% year over year. Shopping on mobile devices is projected to hit a new record high of $128.1 billion, increasing 12.8% year over year.
Online sales during Cyber Week, which is the five-day shopping period, including Thanksgiving, Black Friday and Cyber Monday, are projected to hit $40.6 billion, jumping 7% from the year-ago level and accounting for 16.9% of the overall holiday season sales.
According to Adobe, Cyber Monday is expected to remain the year’s biggest shopping day, driving a record $13.2 billion in sales, increasing 6.1% from year-ago levels.
Rate Cut to Boost Retail Stocks
The retail sector has shown solid resilience over the past few months amid price pressure. Retail sales grew 0.1% in August after rising the most in 18 months in July. Retail sales in July jumped a solid 1.1%.
Year over year, retail sales grew 2.1% in August, with online sales increasing 1.4% after declining 0.4% in the previous month. This came as the Federal Reserve announced its much-awaited rate cut last week.
The Federal Reserve announced a 50-basis point rate cut, the first since March 2020 and the biggest since 2008. A half percentage point rate cut is being seen as the Federal Reserve’s aggressive stance to help the economy make a soft landing.
The Fed’s announcement was cheered by investors. Market participants are hopeful about another 50-basis point rate cut by the end of this year. Lower borrowing rates bode well for the retail sector ahead of the holiday season as it will allow shoppers to spend freely and drive overall retail sales.
Retail Stocks to Benefit From the Holiday Season
PC Connection
PC Connection is a direct marketer of brand-name personal computers and related peripherals, software, and networking products to business, education, government, and consumer end users located primarily in the United States.
PC Connectionhas an expected earnings growth rate of 9.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6% over the past 60 days. CNXN currently carries a Zacks Rank #2.
Image Source: Zacks Investment Research
JD.com
JD.com, Inc. operates as an online direct sales company in China. JD, through its website www.jd.com and mobile applications, offers a selection of authentic products.
JD.com’s expected earnings growth rate for the current year is 27.2%. The Zacks Consensus Estimate for current-year earnings has improved 16.8% over the past 60 days. JD currently has a Zacks Rank #1.
Image Source: Zacks Investment Research
Burlington Stores
Burlington Stores functions as a retailer of branded apparel products and is a Fortune 500 company. BURL operates in the United States and Puerto Rico. Burlington Stores offers products such as ladies sportswear, menswear, youth apparel, baby furniture, accessories, home décor and gifts, and coats.
Burlington Stores’ expected earnings growth rate for the current year is 30.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. BURL presently carries a Zacks Rank #2.
Image Source: Zacks Investment Research
Abercrombie & Fitch
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East. ANF's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, Abercrombie kids and Hollister brands.
Abercrombie & Fitch’s expected earnings growth rate for the current year is 63.4%. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the past 60 days. ANF currently sports a Zacks Rank #1.
Image Source: Zacks Investment Research