The retail industry has been gaining momentum since the beginning of 2021 as investors rotate toward cyclical stocks. Therefore, we think sports retailers Academy Sports and Outdoors (ASO), Hibbett, Inc. (HIBB), and Sportsman’s Warehouse Holdings (SPWH), which have delivered double-digit percentage price gains over the past year, have plenty of upside remaining. Let’s discuss.A solid vaccination drive and gradual reopening of the economy have benefited physical retail stores because people are yearning for in-person shopping following more than a year of online shopping. Furthermore, with rising consumer spending and an improving job market, retail sales have been rising substantially. The global retail market is expected to grow at a 7% CAGR over the next four years to $29.36 trillion.
Given the industry’s bullish growth prospects, investors have been investing heavily in retail stocks since the beginning of the year. This is evident in SPDR S&P Retail ETF’s (XRT) 46.5% gains year-to-date, versus the broader SPDR S&P 500 Trust ETF’s (SPY) 20.1% returns over this period.
Thus, popular retail stocks Academy Sports and Outdoors, Inc. (ASO), Hibbett, Inc. (HIBB), and Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH), with double-digit gains over the past year, appear to have plenty of upside left to deliver.