For immediate release
Chicago, IL – October 27, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in this blog include Amazon.com, Inc. AMZN, GameStop Corp. GME, Nordstrom, Inc. JWN, Walmart, Inc. WMT, and American Eagle Outfitters, Inc. AEO.
Highlights from Thursday’s analyst blog include:
Holiday season boosts retail sales: 5 stocks to watch
The retail sector has seen a solid recovery as inflationary pressures continue to ease due to rising demand for goods. Retail sales rose again in September. This is definitely a good sign ahead of the all-important holiday season.
The holiday season, which typically begins on November 1st and ends on December 24th, is expected to see strong sales growth driven by strong e-commerce spending.Considering this scenario, investing in retail stocks with a strong online presence is a good idea. Amazon.com Inc., Gamestop Co., Ltd., nordstrom company, Walmart Co., Ltd. and American Eagle Outfitters, Inc. That would be ideal.
Sales are expected to increase during the holiday season
Retail sales excluding automobiles are now expected to increase 3.7% year-on-year, according to the latest Mastercard Spending Pulse.
Consumers are expected to continue shopping through a variety of channels, as online shopping has become a habit for millions of Americans during the peak of the pandemic. Online retail sales are expected to increase significantly by 6.7% year-on-year, while store sales are expected to increase by 2.9%.
Another report from Adobe Analytics predicts that online sales will increase 4.8% year-over-year during the holiday season.
Sales also grew at a faster pace from November 1st to December 31st, which includes important shopping days such as Cyber Monday, Thanksgiving, and Black Friday, compared to the $211.7 billion recorded in 2022. is expected to grow to $221.8 billion.
Electronics, gadgets and gaming products are predicted to be at the forefront of consumers’ wish lists. Electronics sales are expected to increase by 6% compared to 2022.
This comes after the Department of Commerce’s latest report showed that retail sales in September increased by a solid 0.7% from the previous month, totaling $704.9 billion.
Core retail sales, which exclude sales at car dealerships, mobile homes, tobacco stores and gas stations, rose 0.6% from the previous month. E-commerce sales increased 1% in September, following a 0.4% increase in the previous month.
Starting in March 2022, the Fed will raise interest rates by 525 basis points, bringing the benchmark policy rate to a range of 5.25% to 5.5%. This aggressive approach to rate hikes has significantly reduced inflation over the past 15 months.
With inflation easing, the Federal Reserve kept interest rates unchanged at the September FOMC meeting. He also hinted at the possibility of a 25 basis point rate hike in the future.
This has left market participants optimistic that the Fed will end its rate hike campaign, which is encouraging news for the retail and discretionary sectors as the holiday season approaches.
Up-and-coming stock
Given the strong economic environment and rising retail sales, smart investors would be wise to consider betting on retail stocks that directly benefit from these favorable conditions. We have selected five such stocks.
Amazon.com Inc. is one of the largest e-commerce providers with extensive operations in North America and around the world. AMZN’s online retail business revolves around its Prime program, which is well supported by the company’s extensive distribution network. Additionally, the acquisition of Whole Foods Market allowed Amazon to establish a footprint in the brick-and-mortar grocery supermarket space.
Amazon.com’s profit growth rate for this fiscal year is expected to be 215.5%. The Zacks Consensus Estimate for current-year earnings has improved by 0.4% over the past 60 days. AMZN currently carries a Zacks Rank # (Hold).You can view See the complete list of today’s Zacks #1 Rank stocks here.
Gamestop Co., Ltd. is the world’s largest video game retailer. GME offers the best selection of new and used video game consoles, accessories, and video game titles in both physical and digital formats. Through all of its channels, GameStop sells a wide variety of digital products, including downloadable content, network loyalty cards, prepaid digital, prepaid subscription cards, digital downloadable software, and collectible products.
GameStop’s expected profit growth rate for this fiscal year is 88.2%. The Zacks Consensus Estimate for current-year earnings has improved 64.7% over the past 60 days. GME currently sports a Zacks Rank #1.
nordstrom company is a leading fashion specialty retailer in the United States. JWN offers a wide range of both branded and private label products located in the premium segment of the industry. Nordstrom provides quality apparel, footwear, cosmetics and related accessories for men, women, youth and children through a variety of channels.
Nordstrom’s expected profit growth rate for this fiscal year is 20.7%. The Zacks Consensus Estimate for current-year earnings has improved by 2% over the past 60 days. JWN currently has a Zacks Rank #3.
walmart has evolved from just a traditional brick-and-mortar retailer to an omnichannel player. WMT’s product offerings include nearly everything from groceries to cosmetics, electronics to stationery, home furnishings to health and wellness products, and apparel to entertainment products.
Walmart’s expected profit growth rate for this fiscal year is 2.2%. The Zacks Consensus Estimate for current-year earnings has improved by 0.2% over the past 60 days. WMT currently carries a Zacks Rank #2.
American Eagle Outfitters, Inc. is a specialty retailer of casual apparel, accessories and footwear for men and women ages 15-25. AEO, together with its subsidiaries, is engaged in the design and marketing of casual clothing. American Eagle Outfitters’ selection includes jeans, cargo pants, and graphic T-shirts, as well as a variety of accessories, outerwear, and footwear.
American Eagle Outfitters’ expected profit growth rate for this fiscal year is 33%. The Zacks Consensus Estimate for current-year earnings has improved 22.9% over the past 60 days. AEO currently sports a Zacks Rank #1.
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