Investor concerns about the pace of the economic recovery due to the resurgence of COVID-19 cases have kept the market volatile. In addition, consumer confidence collapsed to a seven-month low in September. In addition, the United States faces serious supply chain disruptions and shortages due to shipping delays, which further exacerbate the already high inflationary environment. Federal Reserve Chairman Jerome Powell has expressed concerns about inflation and expects the current pressures until 2022.
However, the retail sales increased 0.7% in August compared to the expectation of a decline of 0.8%. In addition, the next holiday season should generate better sales than usual. So turning to retail stocks with strong momentum could be rewarding.
Retail stocks Industria de Diseño Textil, SA (IDEXY), Shoe Carnival, Inc. (SCVL) and Tilly’s, Inc. (TLYS) have seen solid momentum in recent months and are well positioned to continue to recover in the months to come by avoiding market volatility.
These three stocks have an A rating for Momentum as well as an overall Strong Buy or Buy rating in our exclusive property. POWR odds system. So it might be wise to grab these stocks now before they hit new highs.
Industria de Diseño Textil, SA (IDEXY)
Based in La Coruña, Spain, IDEXY is dedicated to the online retail and distribution of clothing, footwear, accessories and household textile products through various business concepts. Its retail concepts include Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home. In addition, it operates 6,829 stores in 96 markets; and online stores in 216 markets.
On June 1, IDEXY had agreed with Inbest SOCIMI to open Zara, Zara Home and Stradivarius in the new shopping arcade. IDEXY Executive Chairman Pablo Isla said: “This agreement succinctly embodies our strategy: a higher quality retail space complemented by more efficient technology to improve customer service in a building that will be a beacon of sustainability. . “
IDEXY’s net sales jumped 49% year-on-year to 11.94 billion euros ($ 13.84 billion) in the first half of the year ended July 31, 2021. EBITDA grew 109% year-on-year to 3.10 billion euros ($ 3.59 billion). Its net profit was 1.27 billion euros ($ 1.47 billion), compared to a loss of 195 million euros ($ 225.98 million) in the first half of 2020.
IDEXY revenue is expected to grow 33.3% year-on-year to $ 10.04 billion for the quarter ending Jan.31, 2022. In the past year, the stock has climbed 31 , 9% and generated returns of 14.6% year-to-date to close yesterday’s trading. session at $ 18.38. It is currently trading 7.6% below its 52-week high of $ 20.20, which it reached on May 19, 2021.
It’s no surprise that IDEXY has an overall rating of B, which equates to a purchase in our POWR rating system. POWR ratings assess stocks based on 118 different factors, each with its own weight.
The stock has an A rating for momentum and quality, and a B rating for growth. Click here to also see IDEXY ratings for Value, Sentiment and Stability. IDEXY is ranked n ° 25 out of 63 stocks in the A ranking Fashion & Luxury industry.
Shoe Carnival, Inc. (SCVL)
SCVL operates as a retailer of family footwear in the United States, offering a variety of clothing, casual footwear and athletic footwear for men, women and children. The company operates 383 stores in 35 states and Puerto Rico. In addition, she sells her products through online shopping at shoecarnival.com and mobile apps.
On June 22, SCVL announced that its board of directors had authorized a split of two for one of its common shares. Cliff Sifford, Vice President and Chief Executive Officer of the Company, said: “The board approval of this stock split as well as the recent increase in dividends further underscores his confidence in the long-term growth path. by Shoe Carnival.
SCVL’s net sales jumped 10.4% year-on-year to $ 332.23 million in the fiscal second quarter ended July 31, 2021. Its total assets increased 13.7% year-on-year to $ 784.06 million. Its net profit was $ 44.21 million, an increase of 339.5% year-over-year. In addition, its EPS stood at $ 1.54, up 340% year-over-year.
SCVL’s EPS and revenue is expected to grow 701.8% and 25.8% year-on-year to $ 4.49 and $ 1.23 billion, respectively, in fiscal 2022. In addition , it has beaten Street’s EPS estimates in each of the past four quarters. The stock has gained 93.1% in the past year and 67.2% in the past nine months to close yesterday’s trading session at $ 32.27. It is currently trading 24.7% below its 52-week high of $ 42.83, which it reached on August 25.
It’s no surprise that SCVL has an overall A rating, which equates to a strong buy in our POWR rating system. The stock also has an A rating for Momentum and a B rating for Growth, Value, Quality and Sentiment.
Click here to also see SCVL’s note for stability. SCVL is ranked # 4 in the same industry.
Tilly’s, Inc. (TLYS)
TLYS operates 238 stores in 33 states as a specialty retailer of casual clothing, footwear, accessories and durable goods for young men and women and boys and girls. It also offers an assortment of third party merchandise in its various product categories. In addition, she sells her wares through her e-commerce website, tillys.com.
On July 31, Ed Thomas, President and CEO of TLYS, said, “Despite continuing concerns about the ongoing resurgence of COVID-19 cases across the country, supply chain disruptions, issues workforce and cost increases in general, we remain cautiously optimistic about our business outlook for the second half of fiscal 2021.
TLYS net sales jumped 48.7% year-on-year to $ 201.95 million in the fiscal second quarter ended July 31, 2021. The company’s operating profit increased 242.8% year on year to reach $ 26.43 million, while its net profit was $ 20.40. million euros, which represents an increase of 287.3% year-on-year. In addition, its EPS stood at $ 0.66, up 266.67% year-over-year.
For fiscal 2022, analysts expect TLYS’s EPS and revenue to grow 4,325% and 41.5% year-on-year to $ 1.69 million and $ 751.65 million, respectively. Additionally, it has beaten Street EPS estimates in three of the past four quarters. The stock has gained 132.3% over the past year and 71.7% year-to-date to close yesterday’s trading session at $ 14.01. It is currently trading 17.2% below its 52-week high of $ 16.93, which it hit on August 24.
TLYS ‘strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a strong buy in our proprietary rating system. Plus, it has an A rating for momentum and sentiment, and a B rating for growth, value, and quality.
Click here to also see TLYS’s note for stability. TLYS is ranked # 7 in the same industry.
SCVL shares remained unchanged on Friday after trading hours. Since the start of the year, the SCVL has gained 69.63%, compared to 17.28% for the benchmark S&P 500 during the same period.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal’s a passionate interest in the analysis and interpretation of financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach he takes while advising investors in his articles. Following…