For immediate release
Chicago, IL – February 17, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tapestry, Inc. TPR, Capri Holdings CPRI, DICK’S Sporting Goods DKS and Signet Jewelers Ltd. SIG.
Here are highlights from Wednesday’s Analyst Blog:
4 Solid Stocks to Buy on Rebound in Retail Sales
Retail sales have somewhat slowed down over the past few months. Moreover, the last holiday season wasn’t that impressive, which further hit retailers. However, the scene seems to have changed with the turn of the year. According to the Mastercard SpendingPulse, retail sales rebounded in January, driven by strong online sales.
E-commerce has been playing an important role in driving retail sales ever since the outbreak of the COVID-19 pandemic and it wasn’t any different in January. Thus, retail stocks with a strong online presence like Tapestry, Inc.,Capri Holdings,DICK’S Sporting Goods other Signet Jewelers Ltd. are likely to benefit in the near term.
Retail Sales Rise in January
According to the latest Mastercard SpendingPulse report, retail sales excluding auto jumped an impressive 7.2% in January on a year-over-year basis. Interestingly, the jump in retail sales in January comes despite growing fears of the Omicron variant of the coronavirus and rising consumer prices.
According to a Commerce Department report released last week, the consumer price index hit a 40-year high in January. Inflation has been a worrying factor but that seems to have not impacted the spending habits of consumers much. One major reason behind this is growing consumer income, which has given people the additional power to purchase.
According to the report, retail sales grew across all segments, led by a solid rise in apparel sales. Apparel sales rose 37.6% year over year in January to record their strongest growth in January in the history of Mastercard SpendingPulse.
People have been shopping for apparels since the COVID-induced restrictions started getting relaxed and traveling and planning holidays resumed. So, sales of luxury goods surged 45.3% year over year in January. Jewelry sales increased 19.8%.
Ecommerce Driving Retail Sales
E-commerce has been playing a major role in driving retail sales for almost two years now. During the pandemic, millions turned to e-commerce to shop for goods and it has since turned into a habit. Despite the fact that millions of Americans are now fully vaccinated and mask restrictions are almost being lifted as the economy further reopens, fears of the coronavirus are far from over.
People are hence still comfortable shopping online. According to the Mastercard SpendingPulse report, online sales grew 10.4% in January on a year-over-year basis.
Moreover, the traditional trend of spending more on services than goods changed during the pandemic. The trend seems to be reversing once again with people having started spending more on services. This saw sales at restaurants grow 36.7% on a year-over-year basis in January and 16.6% from the pre-pandemic levels.
Additionally, as people return to work, they can expect to earn more. Household savings hit a record high in 2021. Thus, retail sales are likely to get a further boost in the coming months.
Online shopping will continue to be a safe bet for millions. This is thus the right opportunity to invest in retail stocks that have a strong online presence.
Each of the stocks sports a Zacks Rank #1(Strong Buy) or Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry is a 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, fragrance and watches.
Tapestry reported stronger-than-expected second-quarter fiscal 2022 earnings, thanks to robust demand and strong customer engagement. TPR posted second-quarter adjusted earnings of $1.33 per share, beating the Zacks Consensus Estimate of $1.19.
Zacks Rank #1 Tapestry’s expected earnings growth rate for the current year is 22.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. TPR shares have advanced 6.1% in the past 30 days. Tapestry has a Zacks Rank #2.
Capri Holdings provides women’s and men’s accessories, footwear and ready-to-wear, as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. CPRI operates in the global personal luxury goods industry, which has been severely impacted by the coronavirus outbreak.
Capri Holdings’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 12.4% over the past 60 days. CPRI’s shares have advanced 20.4% in the past 30 days. Capri Holdings sports a Zacks Rank #1.
DICK’S Sporting Goods operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc. DKS offers these items through a blend of associates, in-store services and unique specialty shop-in-shops.
DICK’S Sporting owns and operates Golf Galaxy and Field & Stream stores as well as Team Sports HQ. DICK’S Sporting Goods also operates an all-in-one youth sports digital platform, which offers scheduling, communications and live scorekeeping via the GameChanger mobile apps, free league management services, custom uniforms and fan wear.
DICK’S Sporting Goods’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the past 60 days. Shares of DKS have advanced 2.5% in the past 30 days. DICK’S Sporting Goods has a Zacks Rank #2.
Signet Jewelers Limited is a retailer of diamond jewelry, watches as well as other products. SIG operates in the United States, Canada, the United Kingdom, the Republic of Ireland, and the Channel Islands. Signet Jewelers Limited is often considered as the leading retailer of diamond jewelry.
Signet Jewelers Limited’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 11.8% over the past 60 days. Shares of SIG have gained 17% in the past six months. Signet Jewelers Limited sports a Zacks Rank #1.
5 stocks set to double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of coming in and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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DICK’S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
Signet Jewelers Limited (SIG): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Capri Holdings Limited (CPRI): Free Stock Analysis Report
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