4 Prominent Stocks to Buy Now as Consumer Spending Soars in March

Consumer spending remained strong in March, defying expectations as retail sales rose 1.4% month over month to $734.9 billion, according to the Commerce Department's latest report. The rise in sales follows a modest 0.2% increase in February. This uptick came despite waning consumer sentiment amid fears of escalating trade tensions and a potential economic slowdown.Market experts pointed out that the surge in retail sales was driven by heightened purchases across various sectors, including motor vehicles and other consumer goods. This spike suggests that consumers rushed to make purchases ahead of potential price hikes due to impending tariffs, contributing to the month's impressive figures. Retailers such as Sprouts Farmers Market, Inc. SFM, BJ's Wholesale Club Holdings, Inc. BJ, BJ's Restaurants, Inc. BJRI and The Kroger Co. KR stand to benefit from this surge in demand.Looking ahead, the outlook remains uncertain. The robust March performance, fueled by preemptive buying, is expected to taper off as consumers adopt a more cautious stance and focus on savings. With sentiment fragile and inflationary pressures persisting, the path forward for consumer spending hinges on future economic developments and policy outcomes.Breaking Down Retail Sales NumbersSales at motor vehicle & parts dealers saw a month-on-month increase of 5.3%. Building material, garden equipment & supplies dealers and electronics & appliance outlets experienced a 3.3% and 0.8% rise, respectively.Sales at food & beverage stores and clothing & clothing accessories stores witnessed 0.2% and 0.4% increases, respectively. Sales at health & personal care stores rose 0.7%. Sales at sporting goods, hobbies, musical instruments & bookstores jumped 2.4%.General merchandise stores experienced a 0.6% increase in sales, while miscellaneous stores registered growth of 0.7%. Non-store retailers, primarily online, reported a 0.1% jump, while food services & drinking places saw a 1.8% increase. On the contrary, furniture & home furnishing stores experienced a 0.7% decline, while receipts at gasoline stations decreased 2.5%.Past-Year Stock Price Performance of SFM, BJ, BJRI & KRImage Source: Zacks Investment Research4 Prominent StocksSprouts Farmers: Product Innovation & Competitive PricingSprouts Farmers, operating in a highly fragmented grocery industry, is a compelling option. The company has adopted a multifaceted approach to expand its customer base and cater to evolving consumer preferences. Through product innovation, targeted marketing and competitive pricing, Sprouts Farmers ensures that its offerings resonate with its diverse customer base. The company’s commitment to offering fresh, natural and organic products aligns with the growing consumer demand for healthier food options. Its store expansion and growing private label mix reflect solid momentum ahead.The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings per share (EPS) suggests growth of 11.9% and 24.3%, respectively, from the year-ago reported figure. SFM, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 15.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.BJ's Wholesale: Membership & Digitization Drive GrowthBJ's Wholesale continues to demonstrate strong performance, fueled by its strategic focus on membership growth and digital innovations. The company remains committed to enhancing omnichannel capabilities and providing value to customers. These endeavors have contributed to growth in membership signups and renewals, resulting in higher membership fee income. Offering members convenient options such as same-day delivery, curbside pick-up, and buy online and pick up in-club, the company ensures an engaging and seamless digital shopping experience. BJ's Wholesale has been steadily increasing its footprint, targeting high-growth regions and underserved markets. The Zacks Consensus Estimate for BJ's Wholesale’s current financial-year sales and EPS suggests growth of 5.8% and 4.4%, respectively, from the year-ago reported figure. BJ, which carries a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 12%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)BJ's Restaurants: Menu Innovation & Cost ManagementBJ's Restaurants is seeing better guest traffic, supported by enhancements in food quality, service consistency and menu offerings. Strong value perception and promotions are helping drive higher check averages. Operational efficiency is also improving, with disciplined cost control and margin expansion. Investments in kitchen execution, staffing and technology are streamlining workflows and boosting guest satisfaction. These efforts are helping BJ’s build sales momentum while positioning the company for continued improvement.The Zacks Consensus Estimate for BJ's Restaurants’ current financial-year sales and EPS suggests growth of 3.2% and 12.9%, respectively, from the year-ago reported figure. BJRI, which carries a Zacks Rank #2, reported a positive earnings surprise of 34.3% in the last reported quarter.Kroger: Leading With Fresh & Accelerating With DigitalKroger continues to navigate a competitive and evolving retail landscape, leveraging its strong private-label offerings, including "Our Brands," digital expansion and strategic partnerships to maintain its market position. The company remains focused on enhancing its fresh product selection, personalized shopping experiences and digital ecosystem while investing in store remodels and automation to drive efficiency. The Zacks Consensus Estimate for Kroger’s current financial-year sales and EPS suggests growth of 1.4% and 6%, respectively, from the year-ago reported figure. KR, which carries a Zacks Rank #2, has a trailing four-quarter earnings surprise of 2.6%, on average.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks