5 Apparel Stocks Likely To Remain Fashionable Treats In 2019

Apparel’s Contribution to Holiday Sales Growth

Among the retail wings, the apparel and home improvement industries held the spotlight, delivering the strongest growth numbers this holiday season. According to Mastercard, apparel sales rose 7.9% from Nov 1 through Dec 24, the best growth in eight years. This category gained from the strong momentum built during the back-to-school season and followed through the fall season and up to Christmas. Meanwhile, the home improvement industry recorded sales growth of 9% this holiday season.

Apparel Retailers Poised for More Growth

It is worth mentioning here that the apparel retailers have put up a good show throughout 2018 driven by their efforts to showcase innovative merchandise, boost digital presence, enhance supply-chain to provide fast delivery options and manage inventory both in-stores and online. In addition to launching varied omnichannel capabilities, these companies are re-inventing their loyalty and marketing programs to attract customers. Additionally, a buoyant consumer environment, courtesy of a robust job market and higher disposable income, is working in favor of the industry participants. This places the industry well for growth.

Some apparel retailers that have been on the winning side this year, gaining from the aforementioned strategies, are Abercrombie & Fitch and Gap’s (GPS  - Free Report) Old Navy. Additionally, we believe there are many more on the list that are adapting well to evolving times and gearing up for growth.

Our Choices

On that note, we bring to you five apparel retailers that are capable of putting up a glitzy show in 2019. These companies currently carry a Zacks Rank of #1 (Strong Buy) or 2 (Buy) and have comfortably outpaced the market (S&P 500), which has declined 6.9% year to date. These stocks, with a market capitalization of more than $100 million, flaunt a VGM Score of A or B as well.

The chart below shows the year-to-date price performance of the companies versus the S&P 500 index.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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