As we start the enter the holiday season, making sure your portfolio is positioned correctly can help your final 2021 performance. For instance, adding retail stocks that could see gains over the next month and a half might be a great bet. Ross Stores, Inc. (NASDAQ:ROST), Kohl's Corporation (NYSE:KSS), and Dillard's, Inc. (NYSE:DDS) are three worth checking out.With Thanksgiving just a little more than a week away, that means the holiday season is upon us. It also means Black Friday is around the corner, which is when retailers promote major sales and as a result it is the busiest shopping day of the year. If a retail company hasn't had a strong year, Black Friday and the holiday season is where they can make up sales. If a company has already performed well, they typically get an even more significant bump this time of year.
In fact, the retail industry has been one of the biggest beneficiaries of the pandemic recovery. The SPDR S&P Retail ETF (XRT) has shown bullish momentum since the end of March and is up 12%, since October 27th, compared to a 2.8% gain for the S&P 500. As more people got vaccinated and shopped at retail stores, retail companies saw higher growth and price performance.
The question is which retail stocks are the most likely to continue that performance. That's where our POWR Ratings system comes into play. Stocks that have an overall rating of Buy or Strong Buy are likely to outperform stocks with lower ratings. That's why investors should consider Buy-rated stocks Ross Stores, Inc. (ROST), Kohl's Corporation (KSS), and Dillard's, Inc. (DDS) for this holiday season.