4 Best Performing Retail Stocks Of June

Global market conditions have been volatile over the past one month period due to investors’ concerns over Brexit and the Fed’s unwillingness to increase interest rate. While the U.K.’s exit from the European Union (EU) shook stock markets worldwide, the Fed’s reluctance to hike rates continue to raise concerns about the U.S. economy. Though the Fed’s decision was largely based on weaker labor market, Brexit is considered to be another factor.

Industry experts pointed out that the global economy was in good shape in the second quarter until Brexit materialized and raised concerns about future growth. Needless to say, consumer confidence will be lowered to an extent after the incident. A survey conducted just before the U.K.’s vote to exit the EU revealed that consumer confidence index rose to an eight-month high of 98 in June from the revised reading of 92.4 in May. However, the picture might change with July’s reading, which will include the impact of Brexit.

The last time the markets were in the red was when China devalued its currency, yuan. It had taken the equity markets months to recover.

GDP Revised Upward

The U.S. economy improved faster than earlier estimated in the first quarter of 2016. As the nation entered its eighth year of economic expansion, other indicators like housing and retail sales remained promising. However, it remains to be seen if the U.S. economy is robust enough to withstand the impact of Brexit.

The “third” estimate from the Bureau of Economic Analysis showed that first-quarter output of goods and services increased at an annual rate of 1.1%, higher than the consensus estimate of a 1% increase. Further, first-quarter GDP data was revised upward from the previously estimated 0.8% rise.

The most significant upward revisions have been based on the extent of spending on software, research and development.

Despite adverse market conditions posing challenges for a number of retail stocks, we have picked four potential winners using our Zacks Stock Screener. Not only do these stocks have a Zacks Rank #1 (Strong Buy) or #2 (Buy), but also have rallied 5% or more in June.

4 Best Performers of June

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) , which owns and operates entertainment and dining venues, sports a Zacks Rank #1. The stock has rallied 13.8% in June. The company delivered an average positive earnings surprise of 104.8% over the trailing four quarters and has a long-term earnings growth rate of 19.2%. The Zacks Consensus Estimate too has moved up over the past 30 days.

Christopher & Banks Corporation (NYSE:CBK) operates as a retailer of women’s apparel as well as accessories in the U.S through its subsidiaries. Shares of the company gained 15.5% in June. The retailer sports a Zacks Rank #1 and a long-term earnings growth rate of 20%.

The Children's Place, Inc. (NASDAQ:PLCE) , which functions as a children's specialty apparel retailer, gained 10.6% in June. The Zacks Rank #2 stock delivered an average positive earnings surprise of 9.1% over the trailing four quarters. Also, it has a long-term earnings growth rate of 10.3%.

Burlington Stores, Inc. (NYSE:BURL) , which holds a Zacks Rank #2, has a long-term earnings growth rate of 17.7%. The stock jumped 7.5% in June. This retailer of branded apparel products delivered an average positive earnings surprise of 23.2% over the trailing four quarters. The Zacks Consensus Estimate was also revised upward over the past 60 days.