Best stocks to invest in – 5 Retail Stocks that Gained Over 10% in the Past One Month



Best stocks to invest in

When we bet on a stock, we always try to hit the jackpot. But striking the right chord each time needs a fair amount of luck. A favorable event lures investors, while an unfavorable one drives them away from the market. Nonetheless, the current economic scenario is making it tough for investors to arrive at an investment decision.

Well, there are two choices in front of you; either be a mute spectator and wait for a convincing economic environment, or be a front-runner and winner by identifying stocks that have the potential to outperform even when market conditions are not congenial.

Global economic headwinds such as yet-to-recover Chinese economy, fears of a Brexit and fluctuating commodity prices are leaving investors perplexed about which stocks to count on. The U.S. stock market also displayed a sluggish performance at the start of the year owing to fears of overseas turmoil and plunging oil prices. Although the market has recouped much of the losses, it is yet to breathe a sigh of relief.

The recent rebound in oil prices, a sharp increase in consumer spending in almost seven years in April, and a gradual improvement in the housing market are signals that the economy is on a recovery mode. However, a dip in consumer confidence as evident from the recent May reading and an anemic job report unveiling that the economy added a total of only 38,000 jobs last month, the lowest in over five years, cast a doubt over the health of the economy.

It is quite apparent that the market has witnessed a slew of events and to fetch higher returns amid such an investment climate is a difficult task. Moreover, the economic indicators are making things complicated for the Federal Reserve to go for a rate hike. Well, the Federal Reserve will arrive at a decision only after taking into account all the relevant factors.


But for now, betting your bucks on safer counters seems wise. Here we have highlighted five Retail-Wholesale Stocks based on their favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Score of “A” or “B”. Moreover, these stocks have gained over 10% in the past one month and outperformed the major indices. In the past one month, the Dow Jones Industrial Average inched up about 0.1%, while the S&P 500 rose approximately 0.6%. The tech-laden Nasdaq Composite Index advanced roughly 1.5%.

5 Prominent Picks

Dave & Buster’s Entertainment, Inc. PLAY, which owns and operates entertainment and dining venues, is a solid bet. It flaunts a Zacks Rank #1 with a VGM Score of “A” and has a long-term earnings growth rate of 19.2%. Shares of this Dallas, TX-based company have surged roughly 19.7% in the past one month.

Investors can also count on U.S. Auto Parts Network, Inc. PRTS, which together with its subsidiaries, operates as an online retailer of aftermarket auto parts and accessories. The stock sports a Zacks Rank #1 and has a long-term earnings growth rate of 15%, with a VGM score of “A”. Shares of this Carson, CA-based company have gained about 14.2% over the past one month.

We also suggest investing in Burlington Stores, Inc. BURL, which carries a Zacks Rank #2, a VGM score of “A” and has a long-term earnings growth rate of 17.7%. Shares of this Burlington, NJ-based retailer of branded apparel products have increased approximately 18.5% in the said time frame.

Another stock that investors may look forward to is ULTA Salon, Cosmetics & Fragrance, Inc. ULTA, with a Zacks Rank #2, a long-term earnings growth rate of 19.5% and a VGM score of “B”. Shares of this Bolingbrook, IL-based specialty retailer of cosmetics, fragrance, haircare, skincare, bath and body products, have advanced 14.3% in the past one month.

Last but not least is Fred’s, Inc. FRED, which sells general merchandise through its retail discount stores and full service pharmacies. It carries a Zacks Rank #2 and has a long-term earnings growth rate of 8%. Shares of this Memphis, TN-based company have jumped about 10.4% in the past one month. Moreover, the stock has a VGM score of “A”.

A Final Word

While these five stocks are not the end of the road, with the help of the Zacks Stock Screener and permutation and combination, you can find out stocks that have the potential to beat the market.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
US AUTO PARTS (PRTS): Free Stock Analysis Report
 
FREDS INC (FRED): Free Stock Analysis Report
 
DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report
 
ULTA SALON COSM (ULTA): Free Stock Analysis Report
 
BURLINGTON STRS (BURL): Free Stock Analysis Report
 
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