4 Stocks To Boost Your Portfolio On Solid Jump In Retail Sales

AMZN Quick QuoteAMZN BOOT Quick QuoteBOOT TPR Quick QuoteTPR ROSS Quick QuoteROSS Retail sales grew at a slower pace than expected in September. However, the retail sector has put up a brave show over the past several months amid inflationary and price pressures. The Federal Reserve has cut interest rates twice since September and is expected to go for another rate cut in December, which bodes well for the retail sector. Also, the ongoing holiday season is expected to boost sales. Given this situation, it would be ideal to invest in retail stocks with a strong online presence.

We have selected four stocks, namely, Amazon.com, Inc. (AMZN Quick QuoteAMZN - Free Report) , Boot Barn Holdings, Inc. (BOOT Quick QuoteBOOT - Free Report) , Tapestry (TPR Quick QuoteTPR - Free Report) and Ross Stores (ROSS Quick QuoteROSS - Free Report) , for investors. These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. U.S.

retail sales made a solid rebound in July, following a decline in June and after struggling for most of the year. Although price pressures continue, it has decreased substantially over the past few months, which allowed consumers to spend freely last month. The Commerce Department said on Aug 15 that retail sales grew a solid 1% in July, following a 0.2% decline in June and ahead of the consensus estimate of a rise of 0.3%. Retail sales, excluding gasoline, food, building materials and automobiles rose 0.3% in July after increasing 0.9% in June. Year over year, retail sales jumped 2.7% in the previous month, while total sales from May through July advanced 2.4% from the year-ago levels. July’s jump was driven by a solid 3.6% jump in sales at motor vehicles and auto parts dealers.

Sales at electronics and appliance stores rose 1.6% in July. Sales at food and beverage outlets rose 0.9%. Online sales increased 0.2% in July after increasing 2.2% in June. Amazon.com, Inc’s (AMZN) Prime Day was largely responsible for the jump in online sales. Also, back-to-school shopping gave a boost to overall retail sales. The retail sector has shown immense resilience amid rising prices and inflationary pressures.

The sector continued to grow in July, boosting the morale of investors. The impressive jump in July retail sales has eased concerns that economic activity started slowing after three months of sluggish job growth. Given this situation, it would be ideal to invest in retail stocks. We have selected four stocks, namely, Levi Strauss & Co. LEVI, Walmart, Inc. WMT, Dutch Bros Inc.

BROS and Wayfair Inc. W for investors. These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here. Retail sales jumped 0.5% in July, after an upwardly revised 0.9% rise in June, the Commerce Department reported on Friday. Year over year, retail sales increased 3.9%.

The July numbers were driven by a solid jump in motor vehicle sales, with receipts at auto dealerships increasing 1.6%, after climbing 1.4% in the prior month. Online sales rose 0.8% in July after increasing 0.9% in June. Sales at clothing stores and furniture outlets increased 0.7% and 1.4%, respectively. Households have been spending less and saving more over concerns that a weak labor market is an indication of a softening economy and President Donald Trump’s tariffs would escalate inflation. In August, the U.S. retail sector presented a multifaceted performance.

Retail sales for the month exceeded expectations, primarily driven by a sharp increase in gasoline prices, a consequence of production cuts enacted by Saudi Arabia and the OPEC+ alliance. This rise in gasoline prices translated into higher spending at gasoline stations. However, this surge impacted consumers' budgets, particularly as families prepared for the back-to-school season.While there was a notable spike in retail spending on fuel, growth in expenditures on other items remained relatively modest. This suggests that Americans exercised prudence in their spending, possibly in response to the prevailing challenges of rising inflation and increased borrowing costs. Last month, the consumer price index rose 0.6% sequentially and 3.7% from the year-ago period, per the U.S. Department of Labor.

August marked the fifth consecutive month of gains in retail sales. The Commerce Department reported a sequential increase of 0.6% in U.S. retail and food services sales for August, reaching a total of $697.6 billion. This followed a revised reading of a 0.5% increase registered in July. Impressively, August retail sales rose 2.5% from the year-ago period.The Commerce Department's latest report reveals a diverse range of trends in retail sales. Motor vehicle & parts dealers saw a modest increase of 0.3% in sales on a sequential basis.

Building material & supplies dealers experienced a slight uptick of 0.1%, while electronics & appliance stores reported a more substantial jump of 0.7%.Food & beverage stores posted growth of 0.4%, whereas clothing & clothing... General merchandise stores showed a modest 0.3% uptick, while gasoline stations witnessed a significant surge with a 5.2% increase in receipts. Sales at health & personal care stores rose 0.5%, while food services & drinking places saw a 0.3% increase.However, the picture was less optimistic for furniture and home furnishing stores, where sales decreased 1%. Sporting goods, hobbies, musical instruments and bookstores reported a more substantial decline, with sales falling 1.6%. Miscellaneous stores also saw a decrease of 1.3%. Interestingly, non-store retailers reported unchanged sales last month, which may have been influenced by Amazon Prime Day sales events in July.

You may invest in Urban Outfitters, Inc. URBN. This leading lifestyle product and services company seems a promising bet due to its solid business strategies and sound fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, FP Movement, and store-growth endeavors are also impressive.The Zacks Consensus Estimate for Urban Outfitters’ current fiscal sales and EPS suggests growth of 9% and 84.6%, respectively, from the year-ago reported... This Zacks Rank #1 (Strong Buy) stock has an estimated long-term earnings growth rate of 23.7%.

URBN has a trailing four-quarter earnings surprise of 19.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.Walmart Inc. WMT is another potential pick. The omnichannel retail giant has been diligently working to further strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems. Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment.Walmart has a long-term earnings growth expectation of 6.6%.

This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 11.6%, on average. The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings suggests growth of 9.2% and 2.2%, respectively, from the year-ago reported numbers.Investors can count on Ross Stores, Inc. ROST. The store expansion strategy, combined with the company's strong brand reputation and off-price retail model, positions Ross Stores for success in the dynamic retail landscape. The company has ambitious goals, aiming to reach at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations over time. By expanding its store network, the company strengthens brand visibility, captures new customer segments and unlocks potential sales growth.This operator of off-price retail apparel and home fashion stores delivered a trailing four-quarter earnings surprise...

The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 8.1% and 19.4%, respectively, from the year-ago period. ROST, which presently carries a Zacks Rank #2, has an estimated long-term earnings growth rate of 11.6%.Sprouts Farmers Market, Inc. SFM is also worth betting on. The company has crafted a reputation for itself within the grocery industry by consistently prioritizing key areas that resonate with consumers. The company’s focus on product innovation, emphasis on e-commerce, the expansion of private-label offerings and targeted marketing with everyday great pricing bode well. It has been lowering operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores.The Zacks Consensus Estimate for Sprouts Farmers’ current fiscal sales and EPS suggests growth of 5.7% and 14.6%,...

The company has an estimated long-term earnings growth rate of 9.3% This Zacks Rank #2 stock has a trailing four-quarter earnings surprise of 14.3%, on average. It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. EBAY Quick QuoteEBAY KR Quick QuoteKR GAP Quick QuoteGAP JD Quick QuoteJD TPR Quick QuoteTPR

Retail sales in the United States rose in March for the second straight month. Although the pre-tariff buying partly triggered sales, the retail sector has been trying to stage a solid rebound amid high inflation. Given this situation, it would be ideal to invest in retail stocks. We have selected five retail stocks, namely, eBay Inc. (EBAY Quick QuoteEBAY - Free Report) , JD.com, Inc.(JD Quick QuoteJD - Free Report) , The Gap, Inc. (GAP Quick QuoteGAP - Free Report) , The Kroger Co.

(KR Quick QuoteKR - Free Report) and Tapestry, Inc. (TPR Quick QuoteTPR - Free Report) for investors. These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here. Retail sales rose 1.4% sequentially in March after increasing 0.2% in February and surpassing the consensus estimate of a rise of 1.2%, the Commerce Department said on Wednesday. The monthly gain was the biggest since January 2023.

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