12 U.S. Retail Stocks to Watch on Positive Sales Data: Investment Idea of the Day

Published:

According to the U.S. department of commerce, retail sales for the month of August rose by 0.6% to $444.4 billion over the previous month, while the sales were up 5% over the same month last year. A firming job market, lower fuel prices, and rising home prices were among the key factors pushing up sales last month. Retail trade sales were up 0.6% from July 2014, and 4.8% above last year. Auto and other motor vehicle dealers were up 9.5% from August 2013 and health and personal care stores were up 8.1% from last year.

Today we have selected 12 U.S. retail stocks which have registered significant growth in sales, earnings and also decent operating margins, high return equity (ROE) during their recent reported quarter. Moreover, these stocks are estimated to register strong growth in sales and EPS in 2014. Additionally, a majority of these stocks have recorded gains during the past three months with average traded volume in excess of 100,000.

Company Name

Exchange

Ticker

Market Cap
($MM)

Last Price

Average Volume
(3 Month)

Price Change
(3-Month)

Sales Growth
(Recent Quarter)

Sales Growth
(2014E)

EPS Growth
(Recent Quarter)

EPS Growth
(2014E)

Operating Margin

ROE

Cato Corp/The

NYSE

CATO

963.2

34.50

156,031

13.3%

6.4%

6.5%

9.8%

3.2%

9.6%

14.0%

Five Below Inc

NASDAQ

FIVE

2,315.0

42.63

884,062

16.8%

30.2%

28.0%

87.5%

33.5%

8.7%

35.0%

Sprouts Farmers Market

NASDAQ

SFM

4,521.2

30.05

1,357,281

-3.6%

19.5%

21.1%

100.0%

41.3%

7.5%

22.9%

Zumiez Inc

NASDAQ

ZUMZ

846.0

28.97

295,975

2.7%

11.9%

10.9%

62.5%

16.7%

6.6%

15.2%

PriceSmart Inc

NASDAQ

PSMT

2,677.2

88.62

163,543

-1.1%

7.6%

9.2%

14.8%

10.9%

5.1%

18.3%

Lithia Motors Inc

NYSE

LAD

2,094.6

80.23

340,647

-7.3%

21.1%

28.9%

37.8%

25.9%

5.0%

22.7%

Brown Shoe Co Inc

NYSE

BWS

1,245.6

28.50

242,152

2.0%

2.3%

2.7%

28.1%

13.0%

4.9%

14.3%

Finish Line Inc/The

NASDAQ

FINL

1,499.1

31.37

728,163

6.1%

15.8%

10.5%

160.0%

13.1%

4.9%

15.4%

Asbury Automotive Group

NYSE

ABG

1,992.7

65.67

229,510

4.0%

11.8%

9.2%

35.2%

21.4%

4.8%

23.8%

Group 1 Automotive Inc

NYSE

GPI

1,821.6

75.08

368,593

-6.6%

7.6%

10.7%

357.5%

10.5%

3.4%

10.1%

Penske Automotive Group

NYSE

PAG

3,925.8

43.51

385,780

-6.1%

21.4%

15.7%

27.1%

18.3%

3.1%

17.8%

Rush Enterprises Inc

NASDAQ

RUSHA

1,353.5

34.98

119,685

5.8%

49.7%

35.3%

257.1%

31.1%

3.0%

9.2%

Source: Bloomberg

Company Description

Cato Corp (NYSE: CATO)
The Cato Corporation and its subsidiaries operate and manage stores in the United States. The stores, under the names Cato, Cato Fashions, Cato Plus, and It’s Fashion feature women’s apparel and accessories for juniors, misses, and large sizes. The company’s apparel includes dresses, careerware, coats, hosiery, shoes, handbags, and other related items.

Five Below Inc (NASDAQ: FIVE)
Five Below, Inc. operates as a specialty value retailer. The company offers products such as crafts, party, candy, sports, media, and seasonal products. Five below serves its customers throughout the United States.

Sprouts Farmers Market Inc (NASDAQ: SFM)
Sprouts Farmers Market, Inc. operates a chain of retail grocery stores. The company offers meats, cheese, dairy products, bakery, beer and wine, bulk foods, vitamins, and supplements. Sprouts Farmers Market serves customers throughout the United States.

Zumiez Inc (NASDAQ: ZUMZ)
Zumiez Inc is a specialty retailer of action sports related apparel, footwear, equipment, and accessories.

PriceSmart Inc (NASDAQ: PSMT)
PriceSmart, Inc. owns and manages international merchandising businesses. The company licenses and owns membership stores using the trade name PriceSmart and PriceCostco. PriceSmart’s international market consists of Latin America and Asia. The company also operates domestic merchandising programs, including its Auto Referral Program and its Travel Program.

Lithia Motors Inc (NYSE: LAD)
Lithia Motors, Inc. retail sells new and used vehicles in the western United States. The company offers domestic and imported makes of new automobiles and light trucks through dealerships in California, Oregon, Washington, and Nevada. Lithia also arranges related financing and insurance contracts, as well as provides vehicle parts, maintenance, and repair services.

Brown Shoe Co Inc (NYSE: BWS)
Brown Shoe Company, Inc. operates in the footwear industry. The company’s retail shoe stores offer a wide range of branded footwear for women, men and children.

Finish Line Inc (NASDAQ: FINL)
The Finish Line, Inc. is a specialty retailer of men’s, women’s and children’s brand name athletic and leisure footwear, activewear, and accessories. Brand names carried by the company include Nike, Reebok, K-Swiss, And 1, Asics, adidas, Timberland, New Balance, Saucony, Skechers, and Converse.

Asbury Automotive Group Inc (NYSE: ABG)
Asbury Automotive Group Inc. is an automotive retailer operating franchises and dealership locations in the United States. The company offers new and used vehicles and related financing and insurance, vehicle maintenance and repair services, replacement parts, and service contracts. Asbury’s dealerships are primarily either luxury or mid-line import brands.

Group 1 Automotive Inc (NYSE: GPI)
Group 1 Automotive, Inc., through its subsidiaries, owns and operates automobile dealerships. The company sells new and used cars and light trucks, provides maintenance and repair services, and sells replacement parts. The company also arranges related financing, insurance, and extended service contracts. Group 1 operates in Florida, Georgia, Colorado, Oklahoma, New Mexico, and Texas.

Penske Automotive Group Inc (NYSE: PAG)
Penske Automotive Group, Inc. operates franchised automobile dealerships. The company’s franchises are located throughout the United States, Puerto Rico and the United Kingdom. Penske Automotive sells new and used vehicles as well as offers maintenance and repair services on all brands it represents.

Rush Enterprises Inc (NASDAQ: RUSHA)
Rush Enterprises, Inc. operates a regional network of commercial vehicle dealerships. The company sells new and used heavy-duty and medium-duty trucks, and buses. Rush also provides parts and maintenance, leasing, and financing services.

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