Retail Sales Up In May: Is A Future Rate Hike Likely?

The Home Depot, Inc. (HD - Analyst Report) is another stock that deserves a place in your portfolio. It carries a Zacks Rank #2 and a long-term earnings growth rate of 13.7%. This Atlanta, GA-based home improvement retailer delivered an average positive earnings surprise of 4.2% over the trailing four quarters. It is expected to witness earnings growth of 16.5% in fiscal 2016 and 13.1% in fiscal 2017. The Zacks Consensus Estimate too has been trending up over the past 30 days.

Another addition to your portfolio can be BJ's Restaurants, Inc. (BJRI - Analyst Report) . This operator of casual dining restaurants holds a Zacks Rank #2 and a long-term earnings growth rate of 17.9%. The Huntington Beach, CA-based company delivered an average positive earnings surprise of 18.5% over the trailing four quarters. It is expected to witness earnings growth of 22.1% in 2016 and 13.6% in 2017. The Zacks Consensus Estimate too has been rising over the past 60 days.

Bottom Line

A rise in retail sales definitely offers us a reason to cheer. Market pundits believe that an improving labor market and increasing income will surely boost confidence and instigate spending, which will ultimately translate into higher retail sales. And if this happens and sustains, it will largely help the economy to emerge strongly. In such a market scenario, retail will always be one of the lucrative sectors to invest in.

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