We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
5 Stocks to Buy as Retail Sales Make Steady Rebound
Read MoreHide Full Article
Consumers have cut down on discretionary items lately as concerns about a slowing economy continue to dent their confidence. Despite the decline in spending, retail sales grew in February, giving a glimmer of hope that the economy’s health is not that bad.
The retail sector has shown immense resilience even during the peak of inflation and is making efforts to stage a rebound. Given this situation, it would be ideal to invest in retail stocks.
The Commerce Department reported on March 17 that retail sales grew 0.2% in February. Although the jump came in below the consensus estimate of a rise of 0.3%, retail sales made a solid rebound from the 1.2% decline recorded in January.
Excluding autos, retail sales jumped 0.3%. Year over year, retail sales rose 3.1% in February. Sales were powered by a 3.1% jump in sales at online stores. E-commerce has played a major role in driving overall retail sales over the past few years, and the trend has continued into 2025.
Sales at health and personal care stores increased 1.7% in February, while building materials and garden equipment sales climbed 0.2%.
Multiple Factors Hurting Sales
Uncertainty over the economy’s future owing to higher prices and President Donald Trump’s tariff policies has been denting consumer sentiment lately. Retail sales made a solid rebound in the second half of 2024 after the Federal Reserve started its easing cycle and cut interest rates by a total of 100 basis points.
The Fed, however, paused its rate cuts in January as inflation showed signs of escalating. However, inflation somewhat cooled in February, which is a good sign both for the economy and consumers and bodes well for the retail sector.
Also, investors are struggling to gauge Trump’s fast-changing tariff policies. However, Trump has put most of the proposed tariffs on hold for the time being, which is likely to bring relief to consumers. Also, the Federal Reserve is expected to resume its rate cuts once inflation cools further, which will give a major boost to the retail sector.
5 Retail Stocks With Growth Potential
JD.com
JD.com 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 7.5%. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the past 60 days. JD currently has a Zacks Rank #1.
Deckers Outdoor Corporation
Deckers Outdoor is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. DECK sells products primarily under five proprietary brands — UGG, HOKA, Teva, Sanuk and Other brands (mainly Koolaburra).
Deckers Outdoor’sexpected earnings growth rate for next year is 21%. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the past 60 days. DECK currently has a Zacks Rank #2.
The Gap
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. GPS offers products for men, women and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix and Hill City brands.
The Gap’s expected earnings growth rate for next year is 7.7%. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the past 60 days. GPS currently has a Zacks Rank #1.
Tapestry
Tapestry is the 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, fragrances and watches.
Tapestry’sexpected earnings growth rate for the current year is 14.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. TPR presently carries a Zacks Rank #2.
Urban Outfitters
Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. URBN merchandise is generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. Urban Outfitters has operations in the United States, Canada and Europe.
Urban Outfitters’ expected earnings growth rate for the current year is 11.8%. The Zacks Consensus Estimate for current-year earnings has improved 8.1% over the past 60 days. URBN currently carries a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Stocks to Buy as Retail Sales Make Steady Rebound
Consumers have cut down on discretionary items lately as concerns about a slowing economy continue to dent their confidence. Despite the decline in spending, retail sales grew in February, giving a glimmer of hope that the economy’s health is not that bad.
The retail sector has shown immense resilience even during the peak of inflation and is making efforts to stage a rebound. Given this situation, it would be ideal to invest in retail stocks.
We have selected five retail stocks, namely JD.com, Inc.(JD - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) , The Gap, Inc. (GAP - Free Report) , Tapestry, Inc. (TPR - Free Report) and Urban Outfitters, Inc. (URBN - Free Report) for investors.These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Retail Sales Jump in February
The Commerce Department reported on March 17 that retail sales grew 0.2% in February. Although the jump came in below the consensus estimate of a rise of 0.3%, retail sales made a solid rebound from the 1.2% decline recorded in January.
Excluding autos, retail sales jumped 0.3%. Year over year, retail sales rose 3.1% in February. Sales were powered by a 3.1% jump in sales at online stores. E-commerce has played a major role in driving overall retail sales over the past few years, and the trend has continued into 2025.
Sales at health and personal care stores increased 1.7% in February, while building materials and garden equipment sales climbed 0.2%.
Multiple Factors Hurting Sales
Uncertainty over the economy’s future owing to higher prices and President Donald Trump’s tariff policies has been denting consumer sentiment lately. Retail sales made a solid rebound in the second half of 2024 after the Federal Reserve started its easing cycle and cut interest rates by a total of 100 basis points.
The Fed, however, paused its rate cuts in January as inflation showed signs of escalating. However, inflation somewhat cooled in February, which is a good sign both for the economy and consumers and bodes well for the retail sector.
Also, investors are struggling to gauge Trump’s fast-changing tariff policies. However, Trump has put most of the proposed tariffs on hold for the time being, which is likely to bring relief to consumers. Also, the Federal Reserve is expected to resume its rate cuts once inflation cools further, which will give a major boost to the retail sector.
5 Retail Stocks With Growth Potential
JD.com
JD.com 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 7.5%. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the past 60 days. JD currently has a Zacks Rank #1.
Deckers Outdoor Corporation
Deckers Outdoor is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. DECK sells products primarily under five proprietary brands — UGG, HOKA, Teva, Sanuk and Other brands (mainly Koolaburra).
Deckers Outdoor’sexpected earnings growth rate for next year is 21%. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the past 60 days. DECK currently has a Zacks Rank #2.
The Gap
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. GPS offers products for men, women and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix and Hill City brands.
The Gap’s expected earnings growth rate for next year is 7.7%. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the past 60 days. GPS currently has a Zacks Rank #1.
Tapestry
Tapestry is the 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, fragrances and watches.
Tapestry’sexpected earnings growth rate for the current year is 14.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. TPR presently carries a Zacks Rank #2.
Urban Outfitters
Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. URBN merchandise is generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. Urban Outfitters has operations in the United States, Canada and Europe.
Urban Outfitters’ expected earnings growth rate for the current year is 11.8%. The Zacks Consensus Estimate for current-year earnings has improved 8.1% over the past 60 days. URBN currently carries a Zacks Rank #2.