Since August saw increasing retail sales despite the resurgence of COVID-19 cases and supply chain bottlenecks, we think it could be wise to bet on fundamentally sound retail stocks Target (TGT), Caleres (NYSE:CAL), Tilly's (NYSE:TLYS), and Tile Shop (NASDAQ:TTSH) to cash in on solid consumer activity. Read on.While economists expected the resurgence of COVID-19 cases and supply chain bottlenecks to affect consumer activity and retail sales last month, a pickup in activity due to back-to-school shopping and strong sales across most areas resulted in a positive surprise.
Overall retail sales in August were up 0.7% seasonally adjusted from July versus the Dow Jones estimate of a 0.8% decline.
Because retail sales are expected to be strong in the coming months also, we think it could be wise to bet on fundamentally sound retail stocks Target Corporation (NYSE:TGT), Caleres, Inc. (CAL), Tilly's, Inc. (TLYS), and Tile Shop Holdings, Inc. (TTSH). Each of these stocks is rated A (Strong Buy) in our proprietary POWR Ratings system.