Interested in the retail industry recovery? We ran a screen with this idea in mind.
We began by screening the retail industry for stocks with high earnings growth, with 5-year projected EPS growth above 15%.
We then screened for stocks with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform in the future.
For an ‪interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.‬
Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).
Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.
List sorted by net institutional purchases as a percent of share float.
1. Vera Bradley, Inc. (VRA): Engages in the design, production, marketing, and retail of functional accessories for women under the Vera Bradley brand. Market cap at $1.03B, most recent closing price at $25.34. 5-year projected EPS growth at 19.88%. Net institutional purchases in the current quarter at 2.8M shares, which represents about 13.91% of the company's float of 20.13M shares.
2. Sally Beauty Holdings Inc. (SBH): Engages in the distribution and retail of professional beauty supplies. Market cap at $4.8B, most recent closing price at $26.67. 5-year projected EPS growth at 18.94%. Net institutional purchases in the current quarter at 20.9M shares, which represents about 12.02% of the company's float of 173.85M shares.
3. Dollar General Corporation (DG): Operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. Market cap at $17.2B, most recent closing price at $51.77. 5-year projected EPS growth at 17.64%. Net institutional purchases in the current quarter at 19.3M shares, which represents about 8.8% of the company's float of 219.44M shares.
4. G-III Apparel Group, Ltd. (GIII): Designs, manufactures, imports, and markets a range of outerwear and sportswear apparel to retailers primarily in the United States. Market cap at $569.34M, most recent closing price at $28.51. 5-year projected EPS growth at 17.50%. Net institutional purchases in the current quarter at 883.9K shares, which represents about 5.53% of the company's float of 15.98M shares.
*Institutional data sourced from Fidelity, 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.
