Because retail apparel stores continue to attract increasing foot traffic, and the country’s overall retail sales are expected to increase in the coming months, we think it could be wise to bet on fundamentally sound apparel stocks H & M (HNNMY) and Chico’s FAS (CHS). They are trading at less than $10 per share and have a Buy rating in our proprietary rating system. Read on.The rapid spread of the COVID-19 Delta variant continues to worry investors regarding the pace of economic growth. In addition, according to The Conference Board, its Consumer Confidence Index came in at 113.8 in August, the lowest level since February 2021. U.S. retail sales increased 15.1% year-over-year last month, however. Clothing and accessory stores sales also increased 38.8% year-over-year.
Moreover, according to a ModernRetail report, several apparel retailers are investing in new categories this year to recapture market share, which is expected to drive sales. Also, initiatives to increase the efficacy of vaccines, a rise in consumer spending, growth in e-commerce, and rising foot traffic in retail stores are expected to help boost the apparel industry’s growth.
Given this backdrop, we think it could be wise to scoop up quality apparel stocks H & M Hennes & Mauritz AB (publ) (HNNMY) and Chico's FAS, Inc. (NYSE:CHS), which are currently trading at less than $10. In addition, these two stocks have an overall B (Buy) rating in our proprietary POWR Ratings system.