For Immediate Release
Chicago, IL – June 29, 2017 – 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 Conn's, Inc. (NASDAQ: CONN – Free Report ), Big 5 Sporting Goods Corporation (NASDAQ: BGFV – Free Report ), Best Buy Co (NYSE:BBY)., Inc. (NYSE: BBY – Free Report ), Darden Restaurants (NYSE:DRI), Inc. (NYSE: DRI – Free Report ) and Burlington Stores, Inc. (NYSE: BURL – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday’s Analyst Blog:
5 Retail Stocks to Buy on Renewed Consumer Confidence
Consumer confidence, which ebbed some time back, took an unexpected “U” turn in June, indicating that the economy remains well on track, barring a few hiccups. Though consumer confidence has largely receded from the highs it reached in March this year, analysts believe that it will improve once the policies announced by the current regime start taking shape and the picture becomes clearer.
For now, steady job additions, persistently low unemployment and gradual wage acceleration offer a perfect background to drive consumer confidence, a key determinant of the economy’s health. According to the recent Conference Board data, the Consumer Confidence Index rose to 118.9 this month from May’s reading of 117.6. We expect this positive sentiment to translate into higher consumer spending that may help revive sales.
U.S. retail sales in May recorded the steepest drop in 16 months. The Commerce Department stated that U.S. retail and food services sales in May fell 0.3% to $473.8 billion – following an unrevised reading of 0.4% growth registered in April – as people refrained from buying motor vehicles and spent less at gasoline stations, department stores and electronics shops. However, retail sales increased 3.8% from May 2016.
Nevertheless, the Retail-Wholesale sector still holds some promise, given the favorable economic indicators. We note that so far in the year, the sector has registered an increase of 14.3% compared with the S&P 500 that is up roughly 9.2%. The rebound in oil prices from all-time lows, improving labor market and a gradual improvement in the housing market signal that the economy is on a recovery mode. Thus, adding a few stocks from the space would be a prudent decision.
5 Prominent Picks
Here we have highlighted five Retail/Wholesale stocks with a favorable combination of a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of “A” or “B”.
We suggest investing in Conn's, Inc. (NASDAQ: CONN – Free Report ) with a long-term earnings growth rate of 18.5% and a VGM Score of “A”. In the past one year, the stock has zoomed over 100% and comfortably outperformed the Zacks categorized Retail-Consumer Electronic industry, which advanced 64.9%. This specialty retailer of durable consumer goods and related services delivered an average positive earnings surprise of 80.9% over the trailing four quarters and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here .
You may also consider Big 5 Sporting Goods Corporation (NASDAQ:BGFV – Free Report ), which operates as a sporting goods retailer. The stock sports a Zacks Rank #1 and has a VGM Score of “A”. The company posted an average positive earnings surprise of 94.5% in the trailing four quarters and has a long-term earnings growth rate of 9%. In the past one year, the stock has displayed a fabulous bull run on the index and has risen 44.5%, while the Zacks categorized Retail – Miscellaneous/Diversified industry decreased 7.8%.
Another lucrative option is Best Buy Co., Inc. (NYSE: BBY – Free Report ), which has a long-term earnings growth rate of 11.8% and a VGM Score of “A”. This retailer of technology products, services, and solutions delivered an average positive earnings surprise of 33.8% in the trailing four quarters and carries a Zacks Rank #2. We note that in the past one year, the stock has surged approximately 84.2%, while the Zacks categorized Retail-Consumer Electronic industry has gained 64.9%.
Investors can count on Darden Restaurants, Inc. (NYSE: DRI – Free Report ), an operator of full-service restaurants, with a long-term earnings growth rate of 10.9%. The company posted an average positive earnings surprise of 3.4% over the trailing four quarters and has a VGM Score of “A”. In the past one year, this Zacks Rank #2 stock has exhibited a bullish run and surged roughly 40.5%, while the Zacks categorized Retail-Food & Restaurants industry gained 11%.
Burlington Stores, Inc. (NYSE:BURL – Free Report ), a retailer of branded apparel products, with a long-term earnings growth rate of 15.9% is a solid bet. The company posted an average positive earnings surprise of 22.6% over the trailing four quarters and has a VGM Score of “A”. In the past one year, this Zacks Rank #2 stock has soared 36.8%, while the Zacks categorized Retail-Discount & Variety industry fell 10%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on CONN - FREE
Get the full Report on BGFV - FREE
Get the full Report on BBY - FREE
Get the full Report on DRI - FREE
Get the full Report on BURL - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook (NASDAQ:FB): https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
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 herein 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 herein 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.
Conn's, Inc. (CONN): Free Stock Analysis Report
Big 5 Sporting Goods Corporation (BGFV): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Darden Restaurants, Inc. (DRI): Free Stock Analysis Report
Burlington Stores, Inc. (BURL): Free Stock Analysis Report
Original post
Zacks Investment Research