3 Stocks to Buy for a Bright Holiday Season

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Retail sales seem to have gotten off to a slow start this holiday season. Black Friday was slower than most analysts had expected. The lower consumer confidence indicator was telling for the big holiday shopping weekend when retailers try to jump start the season.

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There is a hope that tumbling gas prices will help shoppers cheer up as we move into the heart of shopping season. While there will inevitably be talk of bottom fishing the battered retailers, it will be more profitable to focus on those companies that are executing well in spite of a soft environment.

Here are three retail companies to buy going into the holiday season this year:

Build-A-Bear Workshop, Inc (BBW)

buildabear185Regardless of the economic conditions, kids love teddy bears and apparently they love building their own at Build-A-Bear Workshop, Inc (BBW). Build-A-Bear Workshop is going all out this holiday season — Build-A-Bear Workshop transformed its stores into Santa’s workshops and introduced eight new reindeer characters for kids to build.

Business has been great this year for Build-A-Bear Workshop with earnings up over 90% year over year, and BBW just posted a 200% positive earnings surprise for the third quarter.

Portfolio Grader loves teddy bears almost as much as the kids to and raised BBW stock an “A” this week. BBW stock is a “strong buy” at the current price.

Ross Stores, Inc. (ROST)

RossLogo_185Cash-conscious consumers are increasingly heading to the off-price retail apparel and home fashion stores like Ross Stores, Inc. (ROST). While many retailers have struggled Ross just posted its second straight positive earning surprise, and analysts have been raising their estimates for Ross Stores.

Ross Stores management sounded pretty optimistic about the fourth quarter telling investors on the most recent conference call that total sales are forecast to increase 5% to 6%, and Ross Stores’ earnings should be 10% – 11% higher during the key quarter of the year.

Portfolio Grader noted the improving performance at Ross’ 1200-plus stores and last week upgraded Ross Stores stock to a “B.” Ross Stores stock is a “buy” this holiday shopping season.

Lowe’s Companies, Inc. (LOW)

Lowes (NYSE:LOW)It looks like folks are fixing up their homes for the holiday season as well. Lowe’s Companies, Inc. (LOW) had a solid third quarter topping analyst estimates for sales and earnings for the second quarter in a row. On the third quarter conference call, Lowe’s management noted that homeowners’ desire to invest in and improve their homes was at the highest level since 2006.

Anticipating a strong holiday decorating season, Lowe’s increased floor space for décor. Portfolio Grader is apparently in the holiday spirit regarding the outlook at Lowe’s as LOW stock was upgraded to a “B” last week. Lowe’s stock is a “buy” at the current price.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip GrowthEmerging GrowthUltimate GrowthFamily Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2014/12/build-a-bear-workshop-bbw-ross-stores-lowes-low/.

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