The Zacks Analyst Blog Highlights Amazon.com, Abercrombie & Fitch, Target and Carvana

For Immediate ReleaseChicago, IL – November 19, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Amazon.com, Inc. AMZN, Abercrombie & Fitch ANF, Target Corp. TGT and Carvana Co. CVNA.Here are highlights from Monday’s Analyst Blog:4 Retail Stocks to Buy on Growing Sales Ahead of Holiday SeasonThe retail sector is showing signs of recovery, as the Federal Reserve’s rate cuts are allowing consumers to spend more freely. Retail sales increased in October, although at a slower pace, but came in higher than economists’ expectations. The jump in retail sales ahead of the all-important holiday season bode well for retailers. Also, holiday sales are forecast to see an impressive jump this year despite several challenges.Given the positive sentiment, investing in retail stocks like Amazon.com, Inc., Abercrombie & Fitch, Target Corp. and Carvana Co. would be a wise decision ahead of the holiday season. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Retail Sales Jump in OctoberRetail sales rose 0.4% on a month-over-month basis in October, beating analysts’ expectations of an advance of 0.3%, the Commerce Department said on Friday. Also, September’s increase was upwardly revised to 0.8% from the previously reported rise of 0.4%.Sales increased across various segments. Sales at auto dealers rose 1.6%, while sales at electronics and appliance stores increased 2.3%. Receipts at food services and drinking places, the sole services category in the report, grew by 0.7% in October after climbing 1.2% in the month earlier. Economists consider dining out a significant indicator of household financial health.Online sales grew 0.3% last month. A sharp rise in consumer spending is powering overall retail sales. Consumer spending had increased 0.5% sequentially in September and 3.7% from the year-ago levels. Also, easing price pressures is allowing consumers to spend more lavishly.Holiday Season to Help Retail StocksThe Federal Reserve cut interest rates by 50 basis points in September, followed by another 25 basis point cut earlier this month as part of its easing cycle after inflation showed signs of ebbing. Lower borrowing costs have been helping consumers with more spending power.The retail sector suffered for months as the Federal Reserve increased interest rates by 525 basis points to fight decades-high inflation. A rate cut coupled with a jump in retail sales ahead of the holiday season bodes well for the retail sector.Holiday sales are projected to rise 3.7% year over year in 2024 and hit $1 trillion, according to a new report from Forrester. Although the projected growth this year is slightly lower than in the past four years, it is sharply higher than in the pre-pandemic era.Online retail sales are projected to jump 10.1% to $257 billion this year, growing at a faster pace than the previous two years. Online sales will account for 26% of the overall retail sales in 2024.5 Retail Stocks with Growth PotentialAmazon.com, Inc.Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN’s online retail business revolves around the Prime program well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.Amazon.com has an expected earnings growth rate of 78.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.8% over the last 60 days. AMZN presently carries a Zacks Rank #2.Abercrombie & FitchAbercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East. ANF's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, Abercrombie kids and Hollister brands.Abercrombie & Fitch’s expected earnings growth rate for the current year is 64.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. ANF currently sports a Zacks Rank #1.Target CorporationTarget Corp. has evolved from being a pure brick & mortar retailer to an omni-channel entity. TGT has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.Target Corporation’s expected earnings growth rate for the current year is 6.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. Target currently carries a Zacks Rank #2.Carvana Co.Carvana Co. is a leading e-commerce platform for buying and selling used cars. CVNA’s end-to-end online business model, which covers every aspect of used-car retailing — including sales, financing, logistics, inspection and repair centers, as well as software development — has transformed traditional used-car sales in several ways.Carvana’s expected earnings growth rate for the current year is 38.7%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. CVNA currently sports a Zacks Rank #1.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Carvana Co. (CVNA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks