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

Published:

As per data released by the U.S. department of commerce yesterday (March 13, 2014), retail and food services sales grew 0.3% during February 2014 to $427.2 billion, after witnessing a decline during the past two months due to harsh weather and beating the consensus estimates of 0.2%. On a year-over-year basis retail sales were up 1.5%. Sales gains were reported in sectors including autos, building materials, health, clothing, sporting goods and restaurants. Excluding automobiles, retail and food services sales in February 2014 were up 0.3% from the prior month.

Ubika Research has shortlisted the following U.S. retail stocks which have registered significant growth in sales, earnings and same store sales during the latest reported quarter. Further, we note that these companies possess decent inventory turnover ratio and provide high return on equity (ROE). Additionally, these stocks have recorded gains during the past month with average traded volume in excess of 100,000.

Company Name

Exchange

Ticker

Market Cap
($MM)

Last Price

Average Volume
(1 Month)

Price Change
(1-Month)

Sales Growth*

EPS Growth*

Same Store Sales*

Inventory Turnover Ratio*

Return On Equity*

Five Below Inc

NASDAQ

FIVE

2,011.6

37.14

854,080

2.1%

27.9%

200.0%

9.0%

3.2

36.7%

Lumber Liquidators Holdings Inc

NYSE

LL

2,773.9

100.95

782,026

5.2%

22.7%

47.1%

15.6%

2.6

28.5%

Pier 1 Imports Inc

NYSE

PIR

1,961.5

19.09

1,576,611

3.3%

9.6%

18.2%

6.9%

2.4

25.8%

ANN INC

NYSE

ANN

1,601.3

34.87

900,066

4.5%

7.3%

5.9%

3.7%

4.0

22.2%

Lithia Motors Inc

NYSE

LAD

1,679.7

64.81

397,422

10.5%

16.8%

35.5%

11.0%

4.3

22.0%

Conn’s Inc

NASDAQ

CONN

1,146.4

31.85

2,520,667

-40.8%

50.6%

88.9%

35.1%

5.2

17.5%

Zumiez Inc

NASDAQ

ZUMZ

740.1

24.44

296,173

12.4%

1.1%

20.0%

1.2%

5.6

14.4%

Natural Grocers by Vitamin Cottage Inc

NYSE

NGVC

936.9

41.69

131,297

4.7%

25.8%

30.0%

10.6%

7.4

13.8%

Haverty Furniture Cos Inc

NYSE

HVT

686.0

30.50

125,821

15.3%

7.6%

38.7%

9.5%

3.7

11.6%

Group 1 Automotive Inc

NYSE

GPI

1,613.2

66.54

302,192

5.4%

17.6%

15.7%

4.3%

5.6

11.2%

Fred’s Inc

NASDAQ

FRED

738.8

20.08

182,817

18.7%

2.2%

11.1%

1.4%

3.6

6.5%

Source: Bloomberg
*Latest Reported Quarter

Company Description:

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.

Lumber Liquidators Holdings Inc (NYSE:LL)
Lumber Liquidators Holdings, Inc. retails hardwood flooring in the United States. The company sells domestic and exotic wood species in both prefinished and unfinished forms.

Pier 1 Imports Inc (NYSE:PIR)
Pier 1 Imports, Inc. retails decorative home furnishings, gifts, and related items. Pier 1 stores are located in the United States, Puerto Rico, Canada, the United Kingdom, and Mexico.

ANN INC (NYSE:ANN)
ANN INC., through its wholly owned subsidiary, retails women’s apparel, shoes, and accessories. The company operates throughout the United States.

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.

Conn’s Inc (NASDAQ:CONN)
Conn’s, Inc. is a specialty retailer of home appliances and consumer electronics through stores in Texas and Louisiana, and via its website. Conn’s also offers home office equipment, lawn and garden products, and other home products such as bedding.

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

Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC)
Natural Grocers by Vitamin Cottage Inc through its subsidiary operates in the food industry. The company provides healthy foods, vitamins, and supplements including allergy, aloe products, amino acids, antioxidants, animal products, beverages, medical, cleansing and clearance, weight loss, electrolytes, energy, cosmetics, natural, minerals, vitamins, pain relief, and supplements.

Haverty Furniture Cos Inc (NYSE:HVT)
Haverty Furniture Companies, Inc. sells home furnishings. The company stores are located in southern and central United States. Haverty’s offers brand name furniture, such as Broyhill, Thomasville, Lane/Action, La-Z-Boy, and Clayton Marcus.

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.

Fred’s Inc (NASDAQ:FRED)
Fred’s, Inc. operates discount general merchandise stores in the southeastern United States. The company also markets goods and services through Fred’s Super Dollar Stores and Pharmacies and Fred’s Xpress Pharmacies

Related articles

Recent articles