The retail industry has been attracting rising foot traffic over the past few months as social distancing mandates phase out. Furthermore, as the U.S. holiday season kicks in, retail sales are expected to increase substantially. Given solid demand, we think retail stocks Buckle (NYSE:BKE) and The Children’s Place (PLCE) could be solid bets now. Also, these stocks beat consensus earnings estimates in their last reported quarter. So, read on.The U.S. retail sector is rebounding from operational disruptions it faced last year. Since the onset of the COVID-19 pandemic, e-commerce retail sales have been on the rise. Furthermore, as social distancing mandates have been eliminated, in-store shopping has gained traction over the past few months.
U.S. retail sales increased 1.7% month-over-month in October, topping the 1.4% market forecast. This marks the sector’s strongest gains since March. In addition, the National Retail Federation (NRF) has predicted seasonal spending will break previous records, forecasting sales to grow between 8.5% - 10.5% versus 2020, during November and December.
Analysts are bullish on the holiday shopping, despite supply worries. Hence, we think retail stocks The Buckle, Inc. (BKE) and The Children's Place, Inc. (NASDAQ:PLCE), which beat their earnings estimates in their most recent quarter, could be solid additions to one’s portfolio.