One of the groups with the biggest earnings beat this quarter is retailers. These stocks are benefitting from increased store traffic and strong consumer spending. 3 small-cap retailers that investors should consider are Haverty Furniture (NYSE:HVT), The Container Store (TCS), and Sally Beauty Holdings (NYSE:SBH).In the current market environment, investors must remain cautious and selective when picking stocks. Though the Dow Jones and S&P 500 continue to remain strong, with both indices just a couple of percentage points away from their all-time highs, the Nasdaq and Russell 2000 have been experiencing more significant pullbacks.
And over the last month, the percent of stocks in the S&P 500 trading above their 50-day moving average has dropped from above 90% to 72%. Similarly, the number of stocks on the New York Stock Exchange making new highs has dropped from averaging above 400 to around 100 over the last month.
With this in mind, I believe one industry that investors should watch is the retail industry. Retail companies are benefiting from stimulus payments and the economy reopening and should continue to outperform in 2021. Further, many retailers posted strong Q1 results and issued guidance above expectations. 3 small-cap retailers that investors should consider are Haverty Furniture (HVT), The Container Store (TCS), and Sally Beauty Holdings (SBH).