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.
4 Retail Stocks that Can Outperform Amazon (AMZN) in 2017
Read MoreHide Full Article
Online retail giant, Amazon.com Inc. (AMZN - Free Report) has attracted the spotlight over the last few years, as changing customer preferences made the retail industry more dependent on ecommerce. The company has today risen to be one of the largest online retailers in the world. Product selection, a superior user experience, bargains and customer feedback have helped the company build a strong position for itself in the fast-growing ecommerce market.
Aptly, shares of Amazon have exhibited a splendid performance in the last two years. It has gained a formidable 147.5% since the start of 2015, significantly outperforming the Zacks categorized Internet Commerce industry’s growth of 18.23%. Moreover, the company has a year-to-date return of 14.2%, beating the industry’s growth of 7.5%.
Presently, Amazon is the most sought after online retailer as it provides small players as well as big brands a platform to increase sales of their products without having to invest heavily in technology and fulfillment centers. Additionally, the company’s retail business is very hard to beat on price, choice, convenience, you name it. It also has a solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships.
However, the company’s third-quarter earnings miss signaled pressure on its earnings due to heavy investments in fulfillment centers, TV shows and movies, trucks and planes and India expansion. We believe that these investments will continue through 2017 and weigh on the company’s high margin Amazon Web Services business. Further, the saturation of Prime in the U.S. market and currency headwinds due to international operations are likely to be deterrents.
Additionally, competition in online retail is heating up. Traditional retailers have always provided the strongest competition and the majority of them are running websites as well. The increased use of internet in both developed and developing economies is attracting other players to the space.
Consequently, Amazon currently holds a Zacks Rank #4 (Sell). Further, the stock does not seem fit for Value and Momentum investors given its Style Score of ‘F’ for both. (You can read more about the Zacks Style Scores here >>)
Picking the Right Stocks
That said, we bring you four retail stocks with favorable Value and Momentum Style Scores and Zacks Rank, which are poised for impressive returns in 2017. These stocks have a Value Style Score of ‘A’ or ‘B’, Momentum Style Score of ‘A’ or ‘B’, and flaunt a solid Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that stocks with Value and Momentum Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or 2 offer the best investment opportunities in the growth investing space.
4 Lucrative Picks
Investors can count on Zumiez Inc. (ZUMZ - Free Report) , a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories. The company, with a Value Score of ‘B’ and Momentum Score of ‘A’, posted an average positive earnings surprise of 30.9% in the trailing four quarters. Moreover, it has a long-term earnings growth rate of 15% and sports a Zacks Rank #1. On a year-to-date basis, the stock has surged roughly 41.8% and crushed the Zacks categorized Retail – Apparel/Shoe industry, which declined 12.5%.
Forget the gym, finding great stocks should be your New Year's resolution! Don't miss out on our new Top 10 Stocks for 2017 list, which has been hand-picked from 4,400 stocks covered by the Zacks Rank. Be one of the first to see this year's list here>>
Boot Barn Holdings, Inc. (BOOT - Free Report) , which is a lifestyle retail company with specialty retail stores in the U.S., is also a solid bet with a Value Score of ‘B’ and Momentum Score of ‘A’. The company posted in line earnings surprises in the last two quarters and has a long-term earnings growth rate of 14.5%. Notably, this Zacks Rank #2 company’s shares have risen 2.3% year to date, considerably outperforming the Zacks categorized Retail – Apparel/Shoe industry, which declined 12.5%.
You may also consider Nordstrom Inc. (JWN - Free Report) , a leading fashion specialty retailer in the U.S., offering high-quality apparel, shoes, cosmetics and accessories for men, women and kids. The stock has both Value and Momentum Scores of ‘A’ and carries a Zacks Rank #2. The company posted an average positive earnings surprise of 9.3% in the trailing four quarters and has a long-term earnings growth rate of 8%. Though the stock has declined 2.8% year to date, it has crushed the Zacks categorized Retail – Apparel/Shoe industry’s decline of 12.5%.
Last but not the least is The Children’s Place Inc. (PLCE - Free Report) , which operates as a children's specialty apparel retailer. The stock has a Value Score of ‘B’ and Momentum Score of ‘A’. Further, the company has a long-term earnings growth rate of 10.3% and a Zacks Rank #1. The company posted an average positive earnings surprise of 36.3% in the trailing four quarters. To add to the positives, the stock has exhibited a bullish run and surged 82.2% year to date, while the Zacks categorized Retail – Apparel/Shoe industry has declined 12.5%.
As you gear up for New Year celebrations, invest in these stocks as they’re most likely to rake in great returns in 2017.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 ""Strong Sells"" and other private research. See the stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Retail Stocks that Can Outperform Amazon (AMZN) in 2017
Online retail giant, Amazon.com Inc. (AMZN - Free Report) has attracted the spotlight over the last few years, as changing customer preferences made the retail industry more dependent on ecommerce. The company has today risen to be one of the largest online retailers in the world. Product selection, a superior user experience, bargains and customer feedback have helped the company build a strong position for itself in the fast-growing ecommerce market.
Aptly, shares of Amazon have exhibited a splendid performance in the last two years. It has gained a formidable 147.5% since the start of 2015, significantly outperforming the Zacks categorized Internet Commerce industry’s growth of 18.23%. Moreover, the company has a year-to-date return of 14.2%, beating the industry’s growth of 7.5%.
Presently, Amazon is the most sought after online retailer as it provides small players as well as big brands a platform to increase sales of their products without having to invest heavily in technology and fulfillment centers. Additionally, the company’s retail business is very hard to beat on price, choice, convenience, you name it. It also has a solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships.
However, the company’s third-quarter earnings miss signaled pressure on its earnings due to heavy investments in fulfillment centers, TV shows and movies, trucks and planes and India expansion. We believe that these investments will continue through 2017 and weigh on the company’s high margin Amazon Web Services business. Further, the saturation of Prime in the U.S. market and currency headwinds due to international operations are likely to be deterrents.
Additionally, competition in online retail is heating up. Traditional retailers have always provided the strongest competition and the majority of them are running websites as well. The increased use of internet in both developed and developing economies is attracting other players to the space.
Consequently, Amazon currently holds a Zacks Rank #4 (Sell). Further, the stock does not seem fit for Value and Momentum investors given its Style Score of ‘F’ for both. (You can read more about the Zacks Style Scores here >>)
Picking the Right Stocks
That said, we bring you four retail stocks with favorable Value and Momentum Style Scores and Zacks Rank, which are poised for impressive returns in 2017. These stocks have a Value Style Score of ‘A’ or ‘B’, Momentum Style Score of ‘A’ or ‘B’, and flaunt a solid Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that stocks with Value and Momentum Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or 2 offer the best investment opportunities in the growth investing space.
4 Lucrative Picks
Investors can count on Zumiez Inc. (ZUMZ - Free Report) , a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories. The company, with a Value Score of ‘B’ and Momentum Score of ‘A’, posted an average positive earnings surprise of 30.9% in the trailing four quarters. Moreover, it has a long-term earnings growth rate of 15% and sports a Zacks Rank #1. On a year-to-date basis, the stock has surged roughly 41.8% and crushed the Zacks categorized Retail – Apparel/Shoe industry, which declined 12.5%.
Forget the gym, finding great stocks should be your New Year's resolution! Don't miss out on our new Top 10 Stocks for 2017 list, which has been hand-picked from 4,400 stocks covered by the Zacks Rank. Be one of the first to see this year's list here>>
Boot Barn Holdings, Inc. (BOOT - Free Report) , which is a lifestyle retail company with specialty retail stores in the U.S., is also a solid bet with a Value Score of ‘B’ and Momentum Score of ‘A’. The company posted in line earnings surprises in the last two quarters and has a long-term earnings growth rate of 14.5%. Notably, this Zacks Rank #2 company’s shares have risen 2.3% year to date, considerably outperforming the Zacks categorized Retail – Apparel/Shoe industry, which declined 12.5%.
You may also consider Nordstrom Inc. (JWN - Free Report) , a leading fashion specialty retailer in the U.S., offering high-quality apparel, shoes, cosmetics and accessories for men, women and kids. The stock has both Value and Momentum Scores of ‘A’ and carries a Zacks Rank #2. The company posted an average positive earnings surprise of 9.3% in the trailing four quarters and has a long-term earnings growth rate of 8%. Though the stock has declined 2.8% year to date, it has crushed the Zacks categorized Retail – Apparel/Shoe industry’s decline of 12.5%.
Last but not the least is The Children’s Place Inc. (PLCE - Free Report) , which operates as a children's specialty apparel retailer. The stock has a Value Score of ‘B’ and Momentum Score of ‘A’. Further, the company has a long-term earnings growth rate of 10.3% and a Zacks Rank #1. The company posted an average positive earnings surprise of 36.3% in the trailing four quarters. To add to the positives, the stock has exhibited a bullish run and surged 82.2% year to date, while the Zacks categorized Retail – Apparel/Shoe industry has declined 12.5%.
As you gear up for New Year celebrations, invest in these stocks as they’re most likely to rake in great returns in 2017.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 ""Strong Sells"" and other private research. See the stocks free >>