- JPMorgan (NYSE:JPM) doesn't think investing in retail is a binary decision to invest in Amazon (AMZN -0.4%) or the skip the sector entirely.
- "It is increasingly clear to us that, in most categories, there will be one large specialty player, mass, and one dominant online player as retailers lap up smaller, less-capitalized, and difficult-to-turn-profitable online-only players, which is happening at an increasing rate," surmises the firm.
- JP thinks the investable survivors will emerger as "mature low-growth, cyclical" companies that put off a lot of cash. Tractor Supply (TSCO -1.1%), Best Buy (BBY -0.1%), Dick's Sporting Goods (DKS -1.3%), Bed Bath & Beyond (BBBY -0.5%), Michaels (MIK +0.4%) and Party City (PRTY +2.8%) all the fit the JP bill.
- The JP analysis suggests that a broad-based ETF might not be the best play.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC
- Now read: February Retail Sales Might Have Been Artificially Low
Original article