Hello there - Retail stocks have been doing well as consumers are rediscovering the enjoyment, or necessity, of in-person shopping. From clothing to groceries, consumers are showing a willingness to return to their pre-pandemic routines. In fact, although the July U.S. Retail Sales Report showed a 1.1% decline, retail sales were going strong through the first half of the year. This strong sales growth is showing up in many retail stocks. In fact, the top performers are beginning to close in on their 52-week high. And they’re being praised by the analyst community as well. Upward price momentum combined with positive sentiment is the recipe for breakout stocks. But there is a storm cloud in plain sight. The Consumer Sentiment Index had an alarming drop of more than 13% in July. The 70.2 reading in August was far lower than the prior month’s 81.2 reading and less than the 81.3 reading that was expected. And with consumer spending making up 70% of economic growth, it should make investors wonder if the 1.1% sales decline that was recorded by the U.S. Retail Sales Report is just the tip of the spear. Some analysts say the decline in consumer sentiment is a panic-driven response to the Delta variant. And bullish investors will tell you that historically a decline in consumer sentiment has been bullish for stocks. On the other hand, inflation (transitory or not) is affecting food and gas prices. And for many consumers that may mean cutting back on discretionary spending. Fortunately, there are many retailers who are likely to perform well no matter what direction the economy takes. And those retailers are the focus of this special presentation. Each of these companies reported strong earnings and look ready to be on the list of breakout stocks. View the “7 Retail Stocks to Buy After Strong Quarterly Earnings.”
Matthew Paulson
MarketBeat.com | 
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