Zacks Analyst Blog Highlights: Tapestry, Inc., Capri Holdings, DICK’S Sporting Goods and Signet Jewelers Ltd
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For immediate release
Chicago, IL – February 17, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Tapestry, Inc. TPR, Capri Holdings CPRI, DICK’S Sporting Goods DKS and Signet Jewelers Ltd. GIS.
Here are highlights from Wednesday’s analyst blog:
4 solid stocks to buy when retail sales rebound
Retail sales have slowed somewhat in recent months. Moreover, the last holiday season was not so impressive, which hit the retailers even more. However, the scene seems to have changed with the turn of the year. According to the Mastercard SpendingPulse, retail sales rebounded in January, driven by strong online sales.
E-commerce has played an important role in boosting retail sales since the outbreak of the COVID-19 pandemic and January was no different. So, retail stocks with a strong online presence like Tapestry, Inc.,Capri Holdings,DICK’S Sporting Goods and Signet Jewelers Ltd. are likely to benefit from it in the short term.
Retail sales up in January
According to the latest Mastercard SpendingPulse report, non-auto retail sales jumped an impressive 7.2% in January on a year-over-year basis. Interestingly, the jump in retail sales in January comes despite growing fears of the Omicron variant of the coronavirus and rising consumer prices.
According to a Commerce Department report released last week, the consumer price index hit a 40-year high in January. Inflation has been a worrying factor, but it doesn’t seem to have had much of an impact on consumer spending habits. One of the major reasons behind this is the growth in consumer income, which has given people the extra purchasing power.
According to the report, retail sales rose across all segments, driven by a solid increase in apparel sales. Apparel sales rose 37.6% year-over-year in January to post their strongest January growth in Mastercard SpendingPulse history.
People have been shopping for clothes since COVID-induced restrictions began to ease and travel and vacation planning resumed. Additionally, sales of luxury goods jumped 45.3% year-over-year in January. Jewelery sales increased by 19.8%.
E-commerce drives retail sales
E-commerce has been playing a major role in driving retail sales growth for almost two years now. During the pandemic, millions of people turned to e-commerce to buy goods and it has since become a habit. Despite millions of Americans now being fully vaccinated and restrictions on masks being quickly lifted as the economy reopens, fears of the coronavirus are far from over.
So people are still comfortable shopping online. According to the Mastercard SpendingPulse report, online sales increased 10.4% in January on a year-over-year basis.
Additionally, the traditional tendency to spend more on services than goods has changed during the pandemic. The trend seems to be reversing once again as people have started to spend more on services. This saw restaurant sales rise 36.7% year-on-year in January and 16.6% from pre-pandemic levels.
Also, as people return to work, they can expect to earn more. Household savings reached a record level in 2021. As a result, retail sales should experience a further boost in the coming months.
Our choices
Online shopping will continue to be a safe bet for millions of people. So this is the right opportunity to invest in retail stocks that have a strong online presence.
Each of the stocks sports a Zacks rank #1 (strong buy) or a Zacks rank #2 (buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Tapestry is a designer and marketer of fine accessories and gifts for women and men in the United States and around the world. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal clothing collections, sunglasses, travel bags, fragrances and watches. .
Tapestry reported stronger-than-expected second-quarter fiscal 2022 results, driven by robust demand and strong customer engagement. TPR posted second-quarter adjusted earnings of $1.33 per share, beating Zacks’ consensus estimate of $1.19.
Zacks Rank #1 Tapestry’s projected earnings growth rate for the current year is 22.9%. The Zacks consensus estimate for current-year earnings has improved 4.3% over the past 60 days. Shares of TPR are up 6.1% over the past 30 days. The tapestry has a Zacks Rank #2.
Capri Holdings provides women’s and men’s accessories, footwear and ready-to-wear, as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. CPRI operates in the global personal luxury goods industry, which has been severely impacted by the coronavirus outbreak.
Capri Holdings’ expected earnings growth rate for the current year is over 100%. The Zacks consensus estimate for current-year earnings has improved 12.4% over the past 60 days. Shares of CPRI are up 20.4% over the past 30 days. Capri Holdings sports a #1 Zacks rank.
DICK’S Sporting Goods operates as a leading omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a wide selection of outdoor and sports equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc. DKS offers these items through a mix of associates, in-store services and unique specialty shops.
DICK’S Sporting owns and operates the Golf Galaxy and Field & Stream stores as well as Team Sports HQ. DICK’S Sporting Goods also operates an all-in-one digital youth sports platform, which offers live score scheduling, communications and tracking via the GameChanger mobile apps, free league management services, custom uniforms and fan clothing.
DICK’S Sporting Goods’ forecast earnings growth rate for the current year is over 100%. The Zacks consensus estimate for current-year earnings has improved 5.2% over the past 60 days. Shares of DKS are up 2.5% over the past 30 days. DICK’S Sporting Goods has a #2 Zacks rank.
Signet Jewelers Limited is a retailer of diamond jewelry, watches and other products. SIG operates in the United States, Canada, United Kingdom, Republic of Ireland and the Channel Islands. Signet Jewelers Limited is often considered the leading diamond jewelery retailer.
Signet Jewelers Limited’s expected profit growth rate for the current year is over 100%. The Zacks consensus estimate for current-year earnings has improved 11.8% over the past 60 days. Shares of SIG have gained 17% over the past six months. Signet Jewelers Limited sports a No. 1 Zacks rank.
5 shares ready to double
Each was handpicked by a Zacks expert as the #1 preferred stock to earn +100% or more in 2021. Previous recommendations have skyrocketed +143.0%, +175.9%, + 498.3% and +673.0%.
Most of the stocks in this report fly under the radar on Wall Street, which provides a great opportunity to get in on the ground floor.
Today, check out these 5 potential home runs >>
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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DICK’S Sporting Goods, Inc. (DKS): Free Inventory Analysis Report
Signet Jewelers Limited (SIG): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Capri Holdings Limited (CPRI): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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