Interested in gaining exposure to consumer spending? For a closer look at some interesting stocks of the retail industry, we ran a screen.
We began by screening US-traded retail stocks for those with high-growth projections, with 5-year projected EPS growth above 15%.
We then screened for those with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month representing at least 1.5% of share float. This indicates that short sellers are less bearish on these names than they were a month ago.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these retailers will see the high growth analysts expect? Use this list as a starting point for your own analysis.
List sorted by decrease in shares shorted month-over-month as a percent of share float.
1. Vera Bradley, Inc. (NASDAQ:VRA): Engages in the design, production, marketing, and retail of functional accessories for women under the Vera Bradley brand. Market cap at $946.38M, most recent closing price at $23.66. 5-year projected EPS growth at 20.55%. Shares shorted have decreased from 10.38M to 9.86M over the last month, a decrease which represents about 3.59% of the company's float of 14.48M shares. Days to cover ratio at 10.79 days.
2. Medifast Inc. (NYSE:MED): Engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. Market cap at $282.65M, most recent closing price at $18.31. 5-year projected EPS growth at 17.50%. Shares shorted have decreased from 3.06M to 2.68M over the last month, a decrease which represents about 3.07% of the company's float of 12.38M shares. Days to cover ratio at 9.68 days.
3. Saks Incorporated (NYSE:SKS): Operates fashion retail stores in the United States. Market cap at $1.6B, most recent closing price at $9.79. 5-year projected EPS growth at 15.53%. Shares shorted have decreased from 28.96M to 27.43M over the last month, a decrease which represents about 1.52% of the company's float of 100.62M shares. Days to cover ratio at 13.27 days.
*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.