5 Cheap Retail Stocks to Consider Before the Holidays

These downtrodden retail stocks all have a chance to shine again as we enter the holiday season

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U.S. equities are rebounding slightly on Wednesday after the Federal Reserve announced new stimulus measures to ease short-term inter-bank funding strains. Also helping ease the madness today are reports that China could be open to a trade deal.

As a result, the Dow Jones Industrial Average is trying to climb back over its 50-day moving average as bargain hunters move in.

One area that seems to be getting interest is downtrodden retailers heading into the holiday shopping season. There are a number of turnaround plays catching my eye. Here are five retail stocks that are worth a look right now as things seemingly cheer up a bit.

Retail Stocks to Watch: Office Depot (ODP)

Retail Stocks to Watch: Office Depot (ODP) stock

Office Depot (NASDAQ:ODP) is consolidating above its 50-day moving average. This is setting ODP stock up for a run at the 200-day moving average amid a recovery from a drop that tested its lows in 2012.

The company will next report results on Nov. 6 after the close. Analysts are looking for earnings of 14 cents per share on revenues of $2.9 billion. The company recently penned a deal with Alibaba (NYSE:BABA) that could help the Chinese retail stock push into the U.S. market.

Party City (PRTY)

retail stocks to watch; Party City (PRTY) stock

Party City (NYSE:PRTY) shares are holding above their 50-day moving average, consolidating near levels traded at back in July. Watch PRTY stock for a move to the 200-day moving average, which would be worth a rise of one-third from here.

The company had its shares recently upgraded to buy from neutral at Goldman Sachs. PRTY will report earnings on Nov. 14. Analysts expect earnings of 1 cent per share, down 7 cents year-over-year.

Bed Bath & Beyond (BBBY)

retail stocks to watch Bed Bath & Beyond (BBBY) stock

Bed Bath & Beyond (NASDAQ:BBBY) shares are holding above their 50-day moving average after recovering with a gain of one-third from the lows set in August. Current levels in BBBY stock near $10 are associated with the lows set in late 2018.

The company will next report results on Jan. 8 after the bell. Analysts are looking for earnings of 3 cents per share on revenues of $2.9 billion.

Signet Jewelers (SIG)

retail stocks to watch Signet Jewelers (SIG) stock

Shares of Signet Jewelers (NYSE:SIG) are emerging from a head-and-shoulders reversal pattern that traces to a high of $25, which would be worth a gain of more than 50% from here. That would mark SIG stock’s return to levels traded at earlier this year.

The company will next report results on Dec. 5 before the bell. Analysts are looking for a loss of $1.09 per share on revenues of $1.1 billion as management continues to execute on its “Path to Brilliance” initiatives.

Big 5 Sporting Goods (BGFV)

retail stocks to watch Big 5 Sporting Goods (BGFV) stock

Shares of Big 5 Sporting Goods (NASDAQ:BGFV) are rounding higher, moving towards the 200-day moving average as the 20-day moving average moves above the 50-day moving average. Watch for a move in BGFV stock above its 200-day moving average for the first time since the summer of 2018.

The company, which operates throughout the western United States, is expected to report earnings on Oct. 29. Last year, in the same quarter, it reported EPS of 15 cents.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.

 

 


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