2 Retail Stocks Poised to Soar this Summer
The summer season is nearly upon us…and that doesn’t just mean vacation and travel. It also can be a major driver of retail spending.
Many retailers see their biggest quarters take shape in the summer months thanks to purchases of warm-weather apparel early and seasonal/back-to-school shopping promotions as we move toward fall.
And while inflation remains a concern, consumer data continues to show resilience, especially at the mid- and value-price tiers. That creates an opportunity for select retailers to outperform, particularly those with strong brand loyalty, smart inventory management and targeted seasonal offerings.
Here then are 2 retail stocks well-positioned to benefit from these trends. They offer the potential for significant growth and building strong momentum as we move past Memorial Day.
Academy Sports and Outdoors Inc. (Nasdaq: ASO)
Academy Sports and Outdoors Inc. (Nasdaq: ASO) is a leading sport and outdoor equipment, apparel, and footwear retailer.
The company’s mission is to provide customers with the best quality products at affordable prices. Academy Sports and Outdoors operates over 260 stores across 16 states in the southern and midwestern regions of the United States.
The company offers various products, including hunting and fishing equipment, camping gear, athletic apparel, footwear, and fan gear for college and professional sports teams. Its target market includes outdoor enthusiasts, sports teams, and individual athletes of all ages.
Academy Sports and Outdoors opened 16 new stores in 2024 and plans to open 20 to 25 new locations in 2025, raising its unit count by 7.5%. As the company continues to experience growth, it plans to open 160 to 180 stores over the next five years.
The 16 analysts covering the stock agree, with the average twelve-month price target established at $57.75, which represents a 27.68% forecasted upside from the current share price.
American Eagle Outfitters, Inc. (NYSE: AEO)
American Eagle Outfitters, Inc. (NYSE: AEO) operates as a multi-brand specialty retailer in the United States and internationally. The company is a teen-focused apparel retailer with a significant mall presence, known for its denim and lingerie sub-brand Aerie.
The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands.
It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand.
The company sells its products through its own and licensed retail stores, concession-based shops-within-shops, wholesale markets, and online marketplaces; and digital channels.
According to the 11 analysts who cover the stock, the average twelve-month price target for AEO is $14.80, which represents a forecasted upside of 189.78% from the current share price.
