Graduation ceremonies and summer vacations have started, and this has a lot of people planning their summer vacations. While some will choose to travel in style to resort destinations, many will go the adventure route and camp, fish, bike and brave the summer heat outdoors.
While "roughing it" may seem like the cheaper alternative to an all-inclusive resort vacation, it takes a lot of equipment to fuel that fun, and there are a number of retailers waiting in line to sell you all the "essential" gadgets you never knew you needed.
Let's take a look at a couple of these retail stocks to find out if any of them are worth owning as vacationers stock up this season:
Cabela's (NYSE: CAB ) is an outdoorsman's go-to specialty retail stock. Whether you're in the mood to hunt, fish, camp or embark on some other outdoor adventure, Cabela's provides the resources to make sure you are prepared. The company sells everything from hunting gear to outdoor apparel to home furnishings. Cabela's has managed to produce consistent earnings surprises over the last several quarters, and analysts predict the company will have solid 10% growth this year. However, CAB has been ranked as a C stock in Portfolio Grader for the last eight months. With no immediate improvement in sight, I believe you should continue to hold any shares of this retail stock you already own but not purchase any more.
Winmark Corp. (NASDAQ: WINA ) operates 914 franchises throughout the United States and Canada under the Play It Again Sports, Plato's Closet, Once Upon a Child, Music Go Round and Wirth Business Credit store names. I'm especially interested in the Play It Again Sports segment of the company, which buys, sells, trades and consigns new and used sporting equipment. The sportsmen in you will love the store's variety of sporting accessories, while your wallet will love its affordable prices. WINA has a solid performance history, but, as you can see in its stock report card, its fundamentals have begun to slip. This is another retail stock you should hold off on adding to your portfolio.
Big 5 Sporting Goods (NASDAQ: BGFV ) is a well-known sporting goods store in the western part of the United States. The chain operates nearly 400 locations across 12 states. Its merchandise includes everything from snowboarding equipment and fishing supplies to athletic shoes and outdoor cookware. Unfortunately this stock doesn't have a very sunny forecast. BGFV has been on a steady decline since the beginning of the year. BGFV exhibits weak fundamentals pretty much across the board, and analysts are expecting negative double-digit growth in the company. Sell shares of this F-rated retail stock now.
However, it's not all bad news in the summer fun sector. There is one retail stock I like: Dick's Sporting Goods (NYSE: DKS ). The company sports more than 10,000 employees and 444 stores across the United States. You can get everything from tennis balls and workout equipment to tents and fishing lures. The company has been on an excellent growth path with consistent earnings growth and analyst surprises over the past 12 months. The stock has been ranked a buy for much of the last year, and shares are up about 45% over that time. DKS is a B in Portfolio Grader, and I think it's a solid buy this summer.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.