Tags: stocks | buy | retail | economy | shares

7 Stocks to Buy as Retail Industry Seeks to Recover

7 Stocks to Buy as Retail Industry Seeks to Recover
(Hxdbzxy/Dreamstime)

By    |   Friday, 13 November 2020 01:29 PM

Some Wall Street experts are starting to compile lists of possible stock-market winners in the retail industry, as stores and shoppers prepare for a post-COVID vaccine world.

Gordon Haskett’s Chuck Grom estimates that consumers have pulled back on travel and other entertainment by about $350 billion this year, leaving substantial money available for them to redirect toward shopping, Barron’s said.

“That leads him to believe that the holiday season will be much stronger than expected, even if comparable-sales data due out from big retailers’ quarterly results this month are soft,” the financial publication said.

His favorite picks for the holiday season are Target (TGT), Costco Wholesale (COST), Five Below (FIVE), and Home Depot (HD).

For Home Depot, Grom boosted his rating to buy from accumulate, while maintaining a $315 price target, and cut Lowe’s (LOW) to accumulate from buy and lowered his price target to $181 from $205, Barron’s said.

For the off-price retailers, he upgraded Burlington Stores (BURL) and Ross Stores (ROST) to buy from accumulate. He raised his target on Burlington to $262 from $225 and his target on Ross to $126 from $105, Barron’s said.

However, retailers may face an uphill climb in the wake of the current coronavirus resurgence.

U.S. consumer sentiment unexpectedly declined in early November as an increase in Covid-19 infections and the election prompted Americans to reassess their outlooks for the economy and finances.

The University of Michigan’s preliminary sentiment index for November decreased to a three-month low of 77 from a final October reading of 81.8, data released Friday showed. The median estimate in Bloomberg’s survey of economists called for a reading of 82.

Consumers’ views about their current financial situations deteriorated, to well below the pre-pandemic peaks, the report showed. Net declines in household incomes were reported in early November for the first time since March 2014, with the largest decrease among lower income households and older Americans.

Less optimism about the state of the economy may damp prospects for the holiday shopping season against a backdrop of surging new virus infections across the country. The rising caseloads could weigh on sentiment in the coming months as some cities and states reinstate more restrictive measures.

© 2021 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
Some Wall Street experts are starting to compile lists of possible stock-market winners in the retail industry, as stores and shoppers prepare for a post-COVID vaccine world.
stocks, buy, retail, economy, shares
364
2020-29-13
Friday, 13 November 2020 01:29 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved