3 Retail Stocks Poised for Holiday Season Profits

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Specialty retailers benefit from robust consumer spending, easing inflation, rising disposable income, and the availability of attractive credit options. With the market looking forward to rate cuts following the Fed pause in its last meeting, specialty retailers remain well-positioned for growth.

Thus, stocks like Ulta Beauty, Inc. (ULTA), FIGS, Inc. (FIGS), and Best Buy Co, Inc. (BBY) could be profitable additions to your watchlist this holiday season. Before diving deeper into the fundamentals of these stocks, let’s discuss why the specialty retail industry is well-positioned for growth.

Despite concerns of a slowing economy, retail sales are holding up. Although October retail sales, excluding autos and gas, fell by 0.08%, overall retail and core retail sales are both up 2.6% year-over-year. Moreover, inflation for October was flat month-over-month in October, providing a hopeful sign for consumers.

On top of it, the National Retail Federation (NRF) projects shoppers to spend a record amount of money, including more online spending, this holiday season. Overall holiday spending between November 1 and December 31 is forecasted to be between $957.3 billion and $966.6 billion, exhibiting its typical growth rate of 3% to 4%.

Furthermore, the retail sector’s long-term prospects also look bright. The global retail market is expected to grow to $37.67 trillion in 2027 at a CAGR of 7.4%.

With such constructive trends in mind, let’s analyze the fundamentals of these three Specialty Retailers stocks.

Stock #3: Ulta Beauty, Inc. (ULTA)

ULTA operates as a retailer of beauty products. The company’s offerings include cosmetics, fragrances, skincare and haircare products, bath and body products, salon styling tools, professional hair products, salon services, and nail services.

This article was originally published on this site