With the festive season almost upon us, retail sales are increasing owing to high consumer spending and attractive online discounts and offers. Therefore, we think it could be wise to bet on quality retail stocks Best Buy (BBY), Ulta Beauty (NASDAQ:ULTA), Genuine Parts (GPC), and Williams-Sonoma (NYSE:WSM). They are each currently trading below their 52-week highs. Read on.Despite supply chain disruptions, high inflation, and the resurgence of COVID-19 cases, the holiday season has fostered optimism among retailers. And experts believe this optimism will persist for some time. According to National Retail Federation’s (NRF) Chief Economist Jack Kleinhenz, the 2021 holiday season appears to be on track to exceed the NRF’s retail sales growth forecast of between 8.5% and 10.5%. And investors’ interest in the retail industry is evident in the VanEck Vectors Retail ETF’s (RTH) 7.6% gains over the past three months versus the SPDR S&P 500 ETF’s (SPY) 3.2% returns.
Furthermore, retailers’ online segments are thriving, owing to increased demand, massive discounts, and the sheer convenience they offer ahead of Christmas and New Year.
Therefore, we think it could be wise to bet on fundamentally sound retail stocks Best Buy Co., Inc. (NYSE:BBY), Ulta Beauty, Inc. (ULTA), Genuine Parts Company (NYSE:GPC), and Williams-Sonoma, Inc. (WSM). These stocks are currently trading below their 52-week highs.