5 Retail Stocks That More Than Doubled In 2019
Zacks Investment Research | Dec 15, 2019 10:08PM ET
Retail is a vast and eventful sector. The space is all spruced up with revised rules and action plans. From marketing, showcasing, store formats to delivery — everything in retail is fast evolving. Retailers have been framing marketing strategies or developing promotional pitches depending on consumers’ feedback.
The retail space is mainly focusing on brick-and-mortar and online platforms. Some players in the space have been gaining from their exclusive merchandise and brand offerings, inventory-management initiatives, supply-chain optimization, digital expansion and loyalty programs as well as accelerating shipping and delivery capabilities. Favorable product mix, strategic alliances and buyouts, constant innovation and marketing initiatives have helped retailers tap growth opportunities.
Certainly, the sector is quite competitive and fragmented with companies vying for a bigger slice of the market on attributes such as price, products and speed-to-market. Again, higher digital marketing investments as well as constant store remodeling and refurbishments have been bumping up costs. This has kept margins under pressure to a certain extent.
No wonder, 2019 has been a roller coaster ride for the space, which has witnessed fundamental changes in its dynamics, with technology taking center stage and online shopping gaining preference over traditional ways. Definitely, some players in the space took a while to accommodate and evolve with changes in the retail landscape.
But there are stocks that have displayed outstanding performance on the bourses backed by sound fundamentals, solid labor market and steady wage gains. These stocks have more than doubled year to date.
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Charlotte, NC-based Sonic Automotive, Inc. (NYSE:SAH) , an automotive retailer in the United States, has surged a whopping 139.2% year to date. Moreover, the Zacks Consensus Estimate for the company’s next-year EPS has moved up 15.7% over the past 60 days. Sonic Automotive boasts a VGM Score of A. The stock sports a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
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