The holiday season shopping frenzy has again hit the shops. Hanukkah and Christmas retail shopping is rightly being zeroed-in on by investors, and our Zacks methodology has pulled out 5 sugar plums — retailers worth considering as near-term additions to your portfolio.
The month of December this year is even more crucial, with the curtain over the pending interest rate hike likely to be lifted when Fed officials meet this Wednesday.
The economy is not in bad shape, the employment picture is strong enough to clear the way, and inflation is crawling toward the desired level. Moreover, a 0.2% increase in November retail sales also suggests momentum. The reasons for the liftoff are on the table and Fed Chair Janet Yellen is expected to have no problem imposing it. However, plunging oil prices, a stronger dollar, and their impact need some serious consideration.
Do not let your blood pressure mimic the stock market volatility. We are well into the festive season and its time you look beyond the woebegone market. Whichever direction the market chooses, trust us to find the best ways to keep your portfolio safe.
5 Picks for Xmas
We have identified five Retail-Wholesale stocks based on their favorable Zacks Rank #1 (Strong Buy) or #2 (Buy) + their expected long-term earnings per share growth rate of 10% or more. A favorable rank indicates positive estimate revisions by analysts who are optimistic on the future performance of the company.
We suggest investing in Shake Shack Inc. SHAK, which sports a Zacks Rank #1 and has a long-term earnings growth rate of 27.5%. This New York-based company delivered an average positive earnings surprise of 134.5% over the trailing four quarters. This operator of Shake Shack restaurants is expected to witness earnings growth of 99% in 2015 and 18.3% in 2016. The Zacks Consensus Estimate too has moved up over the past 60 days.
American Eagle Outfitters, Inc. AEO, retailer of apparel and accessories, is another solid bet, with a Zacks Rank #1. The Pittsburgh, PA-based company delivered an average positive earnings surprise of 16.7% over the trailing four quarters, and has a long-term earnings growth rate of 10%. The company is expected to witness earnings growth of 70.9% in fiscal 2015 and 6.8% in fiscal 2016. The Zacks Consensus Estimate too has been trending up over the past 30 days.
Investors can also count on BJ's Restaurants, Inc. BJRI, the operator of casual dining restaurants that carries a Zacks Rank #1 with a long-term earnings growth rate of 20.1%. The Huntington Beach, CA-based company delivered an average positive earnings surprise of 30.6% over the trailing four quarters. The company is expected to witness earnings growth of 61.4% in 2015 and 20.1% in 2016. The Zacks Consensus Estimate too has trended upward over the past 60 days.
Another stock that investors may look forward to is Foot Locker, Inc. FL, a retailer of athletic shoes and apparel, with a Zacks Rank #2 and a long-term earnings growth rate of 12.1%. The New York-based company delivered an average positive earnings beat of 11.2% over the trailing four quarters. It is expected to witness earnings growth of 19% in fiscal 2015 and 11.4% in fiscal 2016. The Zacks Consensus Estimate too has been on the rise over the past 30 days.
Last but not least is Amazon.com, Inc. AMZN, with a Zacks Rank #2 and a long-term earnings growth rate of 35.6%. This Seattle-based online retailer delivered an average positive earnings surprise of 148% over the trailing four quarters. It is expected to witness massive earnings growth in 2015 and 2016. The Zacks Consensus Estimate too has been on the rise over the past 60 days.
Bottom Line
The above stocks hold promise and excellent prospect with healthy fundamentals. We wish the addition of these five stocks turn out a bonanza for you. Merry Christmas!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment