Who doesn't want a portfolio that generates higher returns? However, the mixed bag of events in the domestic turf is leaving investors perplexed about which stocks to count on.
On the one hand, the recent weak June retail sales data raises concerns over a step up in economic activity, while on the other, a dismal back-to-school season sales forecast points to cautious customer spending. Moreover, with first-quarter 2015 GDP contracting 0.2% and the dollar still gaining strength, retail stocks remain susceptible to a number of events.
Looking at the aforementioned factors, you would either want to be absolutely sure when it comes to investment activities or stay away from the market until things begin to improve. But is everything so dull? Certainly not! There are positive commentaries indicating that the economy is on a recovery track, thereby diminishing investors' fear.
According to a recent Conference Board data, the Consumer Confidence Index increased to 101.4 in June from the May reading of 94.6. A gradual recovery in the housing market as well as the manufacturing sector coupled with an improving labor market played a major role in lifting buyers' confidence. With the unemployment rate hovering around 5.3% and total nonfarm payroll employment increasing by 223,000 last month, job prospects look better. Moreover, as global issues surrounding Greece and China settle down, positive sentiment ought to prevail.
It is quite apparent that the market has witnessed a slew of events and to fetch higher returns amid such an investment climate is a difficult task. Well, now there are two choices in front of you; either be a mute spectator and wait for a convincing economic environment, or be a front-runner and winner by identifying stocks that have the potential to outperform even when market conditions are not congenial.
4 Retail Growth Picks
We have identified 4 Retail-Wholesale Stocks based on their Favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or #2 (Buy) + Positive Zacks Earnings ESP+ Growth Style Score. A stock with such a combination has incredible potential in the near term.
