The retail industry is cyclical in nature, for the large part rising and falling on broader consumer confidence. But even in hard times you’ll find a select group of retail stocks that are thriving. Right now discounters, high-end retailers appealing to the wealthy, and specialty retailers with a niche are doing quite well.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve found ten retail stocks for you to buy.
Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”
Macy’s (NYSE:M) operates retail stores under the names Macy’s and Bloomingdale’s. In the last year, M stock is up 70%, compared to the Dow Jones which is only up 10%. Macy’s stock gets an “A” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow, and an “A” grade for return on equity. For more information, view my complete analysis of M stock.
Dollar General (NYSE:DG) is a discount retailer that operates more than 9,400 stores. Dollar general stock has posted a gain of 55% in the last 12 months. DG stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, and a “B” grade for return on equity. For more information, view my complete analysis of DG stock.
Dollar Tree (NASDAQ:DLTR) is another “dollar” discount retailer that makes the list with a yearly gain of 74%. DLTR stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for return on equity. For more information, view my complete analysis of DLTR stock.
Nordstrom (NYSE: JWN) is a well-known fashion specialty retailer. In the last year, JWN stock has jumped 27%, compared to smaller gains by the broader markets. Nordstrom stock gets a “B” grade for sales growth, a “B” grade for operating margin growth, and an “A” grade for return on equity. For more information, view my complete analysis of JWN stock.
Target (NYSE: TGT) operates general merchandise stores that also offer general food items. TGT stock has gained 15% since last March. Target stock gets an “A” grade for return on equity. For more information, view my complete analysis of TGT stock.















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