For Immediate Release
Chicago, IL – December 4, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Abercrombie & Fitch Co. ANF, Amazon.com, Inc. AMZN, Chewy, Inc. CHWY and Torrid Holdings Inc. CURV.
Here are highlights from Tuesday’s Analyst Blog:
4 Retail Stocks to Buy as Cyber Monday Drives Holiday Shopping Spree
Cyber Monday has emerged as one of the major shopping events second only to Black Friday, offering bargain hunters another opportunity to grab amazing deals and discounts. According to Adobe Analytics, Cyber Monday sales are likely to be strong, propelled by stellar consumer demand and an expanding e-commerce landscape. Online spending is expected to have reached more than $13 billion.
Retailers — Abercrombie & Fitch Co., Amazon.com, Inc., Chewy, Inc. and Torrid Holdings Inc. — are embracing innovative strategies and enhancing delivery logistics to provide consumers seamless shopping experience. The integration of store, online and mobile platforms is not only enhancing convenience but also driving higher conversion rates. Services such as doorstep delivery, curbside pickup and buy online, pick up in-store offer expedited delivery options and flexibility for shoppers.
With inflationary pressures moderating and consumer confidence stabilizing, the outlook for retail remains positive. Moreover, the rise of “Buy Now, Pay Later” options and expanded payment flexibility are enhancing consumer purchasing power. These innovations have enabled shoppers to spend more freely, boosting holiday sales.
Given these dynamics, several retail stocks stand out as promising investment opportunities. The companies are capitalizing on the surge in online spending and have demonstrated resilience and adaptability in meeting evolving consumer demands. Let’s explore four retail stocks that are well-positioned to benefit from this year’s robust Cyber Monday sales momentum.
4 Prominent Retail Stocks
Abercrombie & Fitch: Brand Visibility & Global Expansion
Abercrombie & Fitch stands out as a strong investment choice. The company excels in integrating digital and physical retail channels, offering a seamless shopping experience and driving higher customer satisfaction and loyalty. Strategic marketing initiatives, particularly targeted campaigns in key markets, have been effective in boosting brand visibility and customer acquisition. The introduction of innovative product lines meets specific customer needs and broadens the brand's appeal.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids has a trailing four-quarter earnings surprise of 14.8%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and earnings per share (EPS) suggests growth of 14.8% and 67.5% from the year-ago period. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon: Dominating with Robust Logistics Network
Amazon is also worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 10.9% and 79%, respectively, from the year-ago reported figure. AMZN, which carries a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 25.9%, on average.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Torrid Holdings: Providing Seamless Shopping Experience
Torrid’s omnichannel strategy seamlessly integrates its e-commerce and physical store presence. By offering flexible fulfillment options, such as in-store pickups and direct-to-consumer shipping, the company enhances customer convenience. This approach not only improves the shopping experience but also strengthens customer relationships, as shoppers increasingly value flexibility. The company's direct business accounts for 60% of total demand. With 93% of customers engaged in Torrid's loyalty program, the company has built a dynamic marketing framework that drives customer acquisition, retention, and reactivation.
Torrid, a direct-to-consumer brand in North America dedicated to offering a diverse assortment of stylish apparel, intimates and accessories, has an average trailing four-quarter earnings surprise of 43.9%. The Zacks Consensus Estimate for Torrid’s current financial-year earnings suggests growth of 81.8% from the year-ago period. Torrid currently carries a Zacks Rank #2.
Chewy: Autoship Growth & Veterinary Expansion
Chewy is a notable player in the online pet retail market. The company’s Autoship program, central to its revenue strategy, drives significant sales through its subscription-based model, focusing on essential consumables and healthcare products. Chewy’s premium product offerings and growth in Net Sales Per Active Customer reflect strong customer loyalty and repeat purchases. The expansion into veterinary services through new clinics enhances customer acquisition and retention. The growing Sponsored Ads business is on track to become a significant revenue stream.
The Zacks Consensus Estimate for Chewy’s current fiscal sales and EPS suggests growth of 6.4% and 65.2%, respectively, from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 50.9%, on average.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpAmazon.com, Inc. (AMZN) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Chewy (CHWY) : Free Stock Analysis Report
Torrid Holdings Inc. (CURV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
