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4 Retail Stocks Commanding Attention on Buoyant September Sales

The Retail-Wholesale sector draws the most attention with the advent of holiday season, and with September retail sales reaching a pinnacle since March 2015, it raises hopes for a blissful festive season. Sturdy auto sales, a surge in receipts at gasoline stations and increased demand for building materials facilitated a sharp rebound in retail sales. The Commerce Department recently stated that U.S. retail and food services sales increased 1.6% to $483.9 billion.

Analysts believe that the buoyant stock market, gradual wage acceleration, fall in the unemployment rate to 16-year low, and a lift in the economic activity post hurricanes have helped boost consumer sentiment, and this sounds favorable for retailers. Well, the retail sector has been witnessing a sea change with focus gradually shifting to online shopping. Incidentally, retailers are rapidly adopting the omni-channel mantra.

Prominent Picks

Here we have highlighted four Retail/Wholesale stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of A or B. These stocks are backed by sound fundamentals, surging share price and a track record of better-than-expected results. Not only this, these stocks have outperformed their respective industries.

RHRH , a home furnishing retailer, is a lucrative option. The stock has a long-term earnings growth rate of 30% and a VGM Score of A. We note that in a year, the stock has surged over 100%, while the industry has gained 22.2%. The company has delivered an average positive earnings surprise of 21.7% in the trailing four quarters and flaunts a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Domino's Pizza, Inc.DPZ has also emerged as a strong contender with a long-term earnings growth rate of 16.8% and a VGM Score of B. The pizza delivery company delivered an average positive earnings surprise of 6.1% in the trailing four quarters and carries a Zacks Rank #2. In a year, the stock has surged roughly 21.2%, comfortably outperforming the industry 's growth of 14.3%.

We also suggest investing in The Children's Place, Inc.PLCE with a VGM Score of A and a long-term earnings growth rate of 9%. In a year, this Zacks Rank #2 stock has advanced roughly 40.7%, while the industry witnessed a decline of 32.6%. This children's specialty apparel retailer delivered an average positive earnings surprise of 16.3% in the preceding four quarters.

Investors can count on Five Below, Inc.FIVE that has a long-term earnings growth rate of 28.5% and a VGM Score of B. In a year, this Zacks Rank #2 stock has increased roughly 52%, while the industry witnessed a decline of 20.3%. This specialty value retailer delivered an average positive earnings surprise of 8.7% in the preceding four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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