October Retail Sales Steady: 4 ETF & Stock Picks
Zacks Investment Research | Nov 16, 2017 03:05AM ET
The U.S. retail sector continues to feel the bounce from hurricanes. Sales increased ETF & Stocks to Buy on Rebounding September Auto Sales ).
Out of the 13 key sectors, nine registered expansion last month. Below we recommend a few ETFs & stocks that are likely to be the prime beneficiaries of this retail sales improvement.
Auto
A pickup in sales among auto dealerships was noticeable in October, with a 0.7% increase following a 4.6% rise in September. Hurricane Harvey dented thousands of new vehicles that were in dealership lots, according to an analysis from Harvey: Pain or Gain Ahead for Auto Stocks and ETFs? ).
Investors can also have a look at Zacks Rank #1 (Strong Buy) American Axle & Manufacturing Holdings Inc. (NYSE:AXL) . The company is a manufacturer of drivetrain systems and related components. The Zacks Industry Rank of the stock is in the top 20%. It has a VGM (Value, Growth, Momentum) Score of A.
Clothing Vendors
Sales also increased at clothing vendors (up 0.8% in October versus 0.1% in September). Consumers probably started eyeing the holyday season. The National Retail Federation expects retail sales to grow between No Trick, 4 Halloween ETF & Stock Treats for Investors (Revised) ).
This should benefit VanEck Vectors Retail ETF (V:RTH) . Coming to stocks, American Eagle Outfitters Inc. (NYSE:AEO) can be a good pick. The Zacks Industry Rank is in the top 41%. It is a specialty retailer of all-American casual apparel, accessories, and footwear for men and women. The stock has a Zacks Rank #2 (Buy) and a VGM Score of A (read: Online vs. Offline Retail: Recent ETF Winners ).
Electronics and Appliance
Sales for electronics and appliance shot up 0.7% following a 0.3% gain in September. In any case, 3 ETFs to Tap Upbeat Electronics Sales Forecast ).
Higher demand from emerging technology applications like tablets and smartphones is a tailwind to the semiconductor space. If this was not enough, NPD Group analyst Mat Piscatella indicated that game sales are likely to see a “nice rebound this year” from last year's unsatisfactory numbers, thanks to a host of “hot titles and new consoles .”
This should boost funds like VanEck Vectors Semiconductor ETF GAMR . As far as stocks are concerned, investors can take a look at Methode Electronics Inc. (NYSE:MEI) . The stock has a Zacks ETF Rank #1 and a VGM Score of B. The Zacks Industry Rank is in the top 3%.
Restaurants
Sales at restaurants and bars increased 0.8% versus 0.1% last month. This may benefit PowerShares Dynamic Food & Beverage Portfolio PBJ . Investors can also take a look at Zacks Rank #2 Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) . The VGM Score is A.
Get The News You Want
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.