Overall, about two-thirds of US retail stocks are showing some profit gains and about one-third are not. Some of the winners in the May same-store sales sweepstakes are Target Corp. (NYSE: TGT), Costco Wholesale Inc. (NYSE: COST), Gap Inc. (NYSE: GPS), Saks Inc. (NYSE: SKS), and Nordstrom Inc. (NYSE: JWN). The losers among retail stocks in May include Abercrombie and Fitch Co. (NYSE: ANF), J.C. Penney Co. Inc.(NYSE: JCP), Rite Aid Corp. (NYSE: RAD), American Eagle Outfitters (NYSE: AEO), and Hot Topic Inc. (NASDAQ: HOTT).
When you look at the broader stock market, the little guys often get lost in the shuffle. That's because a small start-up or a penny stock can see massive income based on small innovations or an exponential increase in market share due to even minor demographic shifts or industry trends. The reality is that entrenched blue chips just don't move as fast. That can be a good thing in troubled times because it reduces risk, but it can also frustrate investors who watch speedy little companies lap them several times over.