As the holiday season approaches, retailers are gearing up to offer enticing deals, and consumers are eagerly awaiting the festivities. In the retail industry, 4 Retail Stocks businesses are preparing to go the extra mile to capitalize on potential increases in demand. Despite a challenging economic environment, consumer spending remains robust, supported by healthy employment and wage gains.
According to Mastercard Spending Pulse, U.S. retail sales, excluding automotive, are expected to grow by 3.7% compared to the previous year during the traditional holiday period from November 1st to December 24th. While in-store retail sales are projected to increase by 2.9%, e-commerce sales are anticipated to rise by 6.7%. Retailers are adopting proactive approaches and customer-centric strategies to make the most of this season’s opportunities.
The Significance of the Holiday Season for Retailers
The holiday season holds immense significance for retailers, often constituting a substantial portion of their annual sales. It presents a golden opportunity for businesses to showcase their offerings, boost revenues, and establish strong brand loyalty. Retailers use this period not only to maximize sales but also to leave a lasting impression on consumers.
They leverage their strengths and make strategic investments to ensure fast, convenient, and secure shopping experiences, both in physical stores and online. Their efforts include restocking shelves with high-demand products, enhancing online visibility, engaging customers through social channels, and optimizing logistics for seamless operations.
Prominent 4 Retail Stocks
Here are four well-positioned stocks from the Retail – Wholesale sector based on their strong fundamentals:
1. Urban Outfitters (URBN)
Urban Outfitters is a leading lifestyle product and services company that appears to be a promising investment due to its solid business strategies and sound fundamentals. The company’s management has been actively strengthening its direct-to-consumer business, enhancing productivity across existing channels, and optimizing inventory levels. Urban Outfitters’ strategic growth initiative, FP Movement, and store expansion efforts are equally impressive.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal sales and earnings per share (EPS) suggests growth of 9% and 84.6%, respectively, from the previous year. With a trailing four-quarter earnings surprise of 19.2% on average, this Zacks Rank #1 (Strong Buy) company boasts a VGM Score of A.
2. Walmart (WMT)
Walmart, an omnichannel retail giant, is diligently working to further enhance its already strong presence in the market. The company has initiated a series of strategic e-commerce endeavors, including acquisitions, partnerships, and significant improvements in its delivery and payment systems. Concurrently, Walmart is committed to expanding its merchandise offerings, ensuring a diverse and appealing product assortment.
With a trailing four-quarter earnings surprise of 11.6% on average, this Zacks Rank #2 (Buy) stock is expected to achieve growth of 9.2% in current financial-year sales and 2.2% in earnings compared to the previous year. Walmart also holds a VGM Score of A.
3. Ross Stores (ROST)
Investors can place their trust in Ross Stores. The company’s store expansion strategy, combined with its strong brand reputation and off-price retail model, positions it for success in the dynamic retail landscape. Ross Stores has ambitious goals, aiming to reach at least 2,900 Ross Dress for Less and 700 dd’s DISCOUNTS locations over time. By expanding its store network, the company enhances brand visibility, attracts new customer segments, and unlocks potential sales growth.
With a trailing four-quarter earnings surprise of 11.4% on average, the Zacks Consensus Estimate predicts growth of 8.1% in current financial-year sales and 19.4% in EPS compared to the previous year. ROST, presently holding a Zacks Rank #2, boasts a VGM Score of B.
4. Sprouts Farmers Market (SFM)
Sprouts Farmers Market is another stock worth considering. The company has earned a strong reputation in the grocery industry by consistently prioritizing key areas that resonate with consumers. Its focus on product innovation, emphasis on e-commerce, expansion of private-label offerings, and targeted marketing with everyday great pricing are all promising. Additionally, the company is working on reducing operational complexity, optimizing production, improving the in-stock position, and updating to smaller-format stores.
The Zacks Consensus Estimate for Sprouts Farmers’ current fiscal sales and EPS suggests growth of 5.7% and 15.1%, respectively, compared to the previous year. This Zacks Rank #2 stock has a trailing four-quarter earnings surprise of 14.3% on average and holds a VGM Score of A.
In conclusion, as the holiday season approaches, these four retail stocks stand out due to their strong fundamentals and strategic initiatives. Investors seeking opportunities in the retail sector should consider including them in their holiday shopping list. 4 Retail Stocks 4 Retail Stocks 4 Retail Stocks 4 Retail Stocks 4 Retail Stocks 4 Retail Stocks 4 Retail Stocks