‘Tis the season for retail, right?
For the most part, the media and analysts will focus their attention on traditional retail’s Holy Trinity — Walmart (NYSE:WMT), Target (NYSE:TGT) and Best Buy (NYSE:TGT) — as we move through the season. After all, when it comes to shopping, they’re the long-standing traffic leaders.
That’s nice, but as far as investors go, everyone already knows this; it’s the unknown or underappreciated opportunities that pay off big. So let’s look at four members of the SPDR S&P Retail ETF (NYSE:XRT) that the late Rodney Dangerfield truly could have appreciated — despite doing something special, they’re not getting any respect.
Why are these retail stocks underloved? Simple: Analysts aren’t paid to be wrong on a stock, which means an outperforming stock should grab analysts’ attention and drive upgrades. So, we closely monitor a list of stocks that are outperforming the market but have low analyst recommendations, with the thought that they’ll be more likely to see upgrades soon, followed by even higher prices. Here are four such retail stocks to buy: