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.
3 Discount Retailers Look Awesome Ahead of Holiday Season
Read MoreHide Full Article
A buoyant consumer environment as evident from solid labor market, rise in disposable income and an uptick in confidence index are working in favor of discount retailers. Moreover, the strategy to sell products at discounted prices is helping industry players expand their customer base.
Well talking about discounts, we are into that part of the year when bargain hunters are prowling the streets for great deals. And with only couple of months left for the festivities to begin, discount retailers must be on the verge of finishing the ground work.
For sure, retailers are enhancing omni-channel capacities, introducing new brands, remodeling or refurbishing stores and expanding same-day delivery options to expedite the shopping process this festive season. Early-hour store openings, smart promotional efforts and free shipping on online purchases are other areas where they will be focusing. In short, they will try and make the most of the season that accounts for a sizeable chunk of yearly revenues and profits.
Going by Deloitte, holiday sales are projected to increase 4.5-5% and exceed $1.1 trillion between November 2019 and January 2020. Meanwhile, e-commerce sales are estimated to improve 14-18% to reach $144-149 billion.
3 Prominent Picks
Discount retailers have succeeded in creating a niche despite the rising popularity of online retailers — such as Amazon (AMZN - Free Report) — that has compelled many traditional operators to exit. The industry, which is placed in the top 9% of more than 250 Zacks industries, has rallied 19.5% in the past six months, comfortably surpassing the S&P 500’s growth of 5.4%.
Here we have highlighted three discount retailers that carry a favorable Zacks Rank and have outperformed the respective industry.
Target Corporation (TGT - Free Report) , which offers beauty and household essentials, food assortments, apparel and home decor products, is a solid bet with a long-term earnings growth rate of 7.1% and a VGM Score of A. This Zacks Rank #2 (Buy) company has an average positive earnings surprise of 4.6% in the trailing four quarters. Moreover, the stock has surged approximately 35.8% in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Target Corporation Price, Consensus and EPS Surprise
Dollar General Corporation (DG - Free Report) , which offers apparel, cleaning products, home decor, health & beauty aids, toys, seasonal items and packaged food, is also a solid pick with a Zacks Rank #2 and a VGM Score of B. The stock with a long-term earnings growth rate of 10.2% has gained roughly 31.5% in the past six months. It has an average positive earnings surprise of 3.6% in the trailing four quarters.
Dollar General Corporation Price, Consensus and EPS Surprise
Investors can also count on Burlington Stores, Inc. (BURL - Free Report) , which operates as a retailer of branded apparel products. This Zacks Rank #2 company has a long-term earnings growth rate of 15.9% and a VGM Score of A. The company has an average positive earnings surprise of 8.7% in the trailing four quarters. It has appreciated about 37.4% in the past six months.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
3 Discount Retailers Look Awesome Ahead of Holiday Season
A buoyant consumer environment as evident from solid labor market, rise in disposable income and an uptick in confidence index are working in favor of discount retailers. Moreover, the strategy to sell products at discounted prices is helping industry players expand their customer base.
Well talking about discounts, we are into that part of the year when bargain hunters are prowling the streets for great deals. And with only couple of months left for the festivities to begin, discount retailers must be on the verge of finishing the ground work.
For sure, retailers are enhancing omni-channel capacities, introducing new brands, remodeling or refurbishing stores and expanding same-day delivery options to expedite the shopping process this festive season. Early-hour store openings, smart promotional efforts and free shipping on online purchases are other areas where they will be focusing. In short, they will try and make the most of the season that accounts for a sizeable chunk of yearly revenues and profits.
Going by Deloitte, holiday sales are projected to increase 4.5-5% and exceed $1.1 trillion between November 2019 and January 2020. Meanwhile, e-commerce sales are estimated to improve 14-18% to reach $144-149 billion.
3 Prominent Picks
Discount retailers have succeeded in creating a niche despite the rising popularity of online retailers — such as Amazon (AMZN - Free Report) — that has compelled many traditional operators to exit. The industry, which is placed in the top 9% of more than 250 Zacks industries, has rallied 19.5% in the past six months, comfortably surpassing the S&P 500’s growth of 5.4%.
Here we have highlighted three discount retailers that carry a favorable Zacks Rank and have outperformed the respective industry.
Target Corporation (TGT - Free Report) , which offers beauty and household essentials, food assortments, apparel and home decor products, is a solid bet with a long-term earnings growth rate of 7.1% and a VGM Score of A. This Zacks Rank #2 (Buy) company has an average positive earnings surprise of 4.6% in the trailing four quarters. Moreover, the stock has surged approximately 35.8% in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Target Corporation Price, Consensus and EPS Surprise
Target Corporation price-consensus-eps-surprise-chart | Target Corporation Quote
Dollar General Corporation (DG - Free Report) , which offers apparel, cleaning products, home decor, health & beauty aids, toys, seasonal items and packaged food, is also a solid pick with a Zacks Rank #2 and a VGM Score of B. The stock with a long-term earnings growth rate of 10.2% has gained roughly 31.5% in the past six months. It has an average positive earnings surprise of 3.6% in the trailing four quarters.
Dollar General Corporation Price, Consensus and EPS Surprise
Dollar General Corporation price-consensus-eps-surprise-chart | Dollar General Corporation Quote
Investors can also count on Burlington Stores, Inc. (BURL - Free Report) , which operates as a retailer of branded apparel products. This Zacks Rank #2 company has a long-term earnings growth rate of 15.9% and a VGM Score of A. The company has an average positive earnings surprise of 8.7% in the trailing four quarters. It has appreciated about 37.4% in the past six months.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>