(C) Reuters. 2 Undervalued Growth Stocks in the Retail Industry
Because brick & mortar store sales are rising with the reopening of the economy, we think popular retailers Foot Locker (NYSE:FL) and Sportsman’s Warehouse (NASDAQ:SPWH) could generate significant growth in the coming months. And because these two stocks are still trading at reasonable valuations, we think it could be wise to bet on them right now.With 51.6% of the American population having as of June 7 received at least one shot of COVID-19 vaccine, retail stores are now enjoying increasing foot traffic. This, along with an upbeat job market and rising consumer spending, positions retail store operators well for solid sales growth in the coming quarters. Investors’ interest in the retail space is evident in the SPDR S&P Retail ETF’s (XRT) 16.3% gains over the past three months compared to the SPDR S&P 500 Trust ETF’s (SPY) 10.1% returns.
The increasing integration of data analytics in company management to streamline operations and enhance supply chain efficiency could lead to further growth in this space. Total retail sales in the United States are expected to increase to $5.94 trillion in 2024 from $5.47 trillion in 2019..
So, we think it could be wise to bet on Foot Locker, Inc. (FL) and Sportsman’s Warehouse Holdings, Inc. (SPWH) that are currently trading at discounts to their peers but hold immense growth potential.
2 Undervalued Growth Stocks in the Retail Industry
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