Take Advantage Of The Momentum In These 3 Retail Stocks

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A solid vaccination drive and the gradual reopening of the economy have benefited physical retail stores because people are yearning for in-person shopping following more than a year of online shopping. Furthermore, with rising consumer spending and an improving job market, retail sales have been rising substantially. The global retail market is expected to grow at a 7% CAGR over the next four years to $29.36 trillion.

Given the industry’s bullish growth prospects, investors have been investing heavily in retail stocks since the beginning of the year. This is evident in SPDR S&P Retail ETF’s (XRT) 46.5% gains year-to-date, versus the broader SPDR S&P 500 Trust ETF’s (SPY) 20.1% returns over this period.

Thus, popular retail stocks Academy Sports and Outdoors, Inc. (ASO), Hibbett, Inc. (HIBB), and Sportsman’s Warehouse Holdings, Inc. (SPWH) appear to have plenty of upside left to deliver.

Academy Sports and Outdoors, Inc. (ASO)

ASO sells sporting goods and outdoor products through Academy Sports + Outdoors and BCG. The company began trading publicly on Oct. 2, 2020, following a traditional IPO.

On Aug. 16, ASO partnered with fast-food chain Whataburger for the Magellan Outdoors X Whataburger apparel line, which is available across 106 ASO locations in Texas for a limited time. The collaboration with a renowned brand is expected to boost ASO’s revenues. In July, ASO became an official sponsor of Austin FC. The sponsorship is expected to build a stronger footprint for the company in Texas due to the soccer club’s loyal fanbase.

In its second fiscal quarter, ended July 31, ASO’s net sales increased 11.5% year-over-year to $1.79 billion. Its gross margin improved 29.4% from the prior-year quarter to $642.5 million. Its net income came in at $190.51 million, up 13.6% from the same period last year. And its adjusted EBITDA increased 41.3% year-over-year to $324.42 million.

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Adam Reynolds 4 days ago Member's comment

$HIBB doesn't have any momentum.
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