4 Top-Ranked Retail Stocks To Buy Before Christmas

The holiday season is approaching its peak, and the shopping frenzy is hitting the shops and streets again. However, it’s not only presents that we brainstorm for ahead of Christmas — zeroing in on a hotspot to celebrate the Christmas weekend also tops our last-minute to-do list. Now if an ardent investor is worried about ignoring their portfolio at this moment, we would like to make investment decisions easier with four top-ranked Retail-Wholesale stocks.

The sector has suddenly become one of investors’ favorites, thanks to the auspicious start to the holiday shopping season and the tax reform bill, which if passed is likely to lower the burden of retailers. The sector has gained 28.7% so far in the year, comfortably outperforming the S&P 500 Index, which advanced 19.2%.

Retail Season Demand

Improving labor market, rising disposable income and elevated consumer sentiment have ushered confidence in retailers about a robust holiday season. The festive season is often a make-or-break time for retailers, as it accounts for a sizeable chunk of yearly revenues and profits.

Indeed, shopping season is likely to be more blissful for retailers. With Christmas falling on Monday and 32 days after Thanksgiving, shoppers are getting one extra day compared with last year and an extended weekend to do last minute purchasing.

Overall, NRF projects a 3.6-4% rise in November and December sales (excluding autos, gas and restaurant sales) to $678.75-$682 billion, up from $655.8 billion last year and better than the five-year average sales growth of 3.5%. Data compiled by eMarketer forecasts a 3.1% jump in holiday sales (November and December) to $923.15 billion, while retail e-commerce holiday season sales are anticipated to rise 16.6%.

Having said that, we believe the sector offers lucrative opportunities for investors to make their Christmas holidays special. Here we have highlighted four Retail/Wholesale stocks with a favorable combination of 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.