As holidays approach, Barron's goes bargaining hunting in retail stocks

"The U.S. economy might be limping along, but many consumers have broken into a sprint," Jacqueline Doherty writes, in what seems like a rather paradoxical passage considering that consumer spending accounts for around two-thirds of U.S. economic output.

Doherty cites an October retail sales print that came in ahead of consensus, NRF's expectations for a healthy Y/Y increase in holiday sales, and a hefty, market-beating return for the S&P Retail Select Industry index as evidence of "improvements in the consumer's fortunes."

Still, Barron's thinks some stocks, like Michael Kors (KORS) and Restoration Hardware (RH), may have limited upside after big runs.

Among retail stocks listed as "bargains": Bed Bath & Beyond (BBBY), Home Depot (HD), and Macy's (M).


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Comments (3)
  • rheimerl
    , contributor
    Comments (494) | Send Message
    chs as well,
    23 Nov 2013, 02:53 PM Reply Like
  • wyostocks
    , contributor
    Comments (9115) | Send Message


    "improvements in the consumer's fortunes."


    Give me a frigging break. Many thousands of baby boomers turn 65 each day and don't have enough to retire on, 50 million are on food stamps, the young can't find a job, the real UE is about 15 or 20%, of those working many are in very low paying jobs, health cost are skyrocketing for millions; and the "consumer" is doing great?


    The only consumers doing great are those in high six figure jobs. The average Joe is struggling. The markets are great because of the Fed's QU which is killing the average Joe again.


    This will go on forever?


    IMO, Barron's is far removed from reality and this is nothing but a pump and dump article for the individual investor to once again get in at the top and then get slaughtered..


    One day the music is going to stop and a lot of people will not have a chair.


    Just my Saturday afternoon rant.
    23 Nov 2013, 02:58 PM Reply Like
  • boston8b
    , contributor
    Comments (187) | Send Message
    Hope you feel better. Really.
    23 Nov 2013, 03:18 PM Reply Like
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