Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
UBS Declares its 5 Top Retail Stock Ideas
© Reuters. UBS Declares its 5 Top Retail Stock Ideas
By Sam Boughedda
In a note to investors discussing hardline, broadline and food retail stocks, UBS said its current top ideas in the sector are SPDR® SSgA Multi-Asset Real Return ETF (NYSE:RLY), Dollar General (NYSE:DG), Target (NYSE:TGT), Home Depot (NYSE:HD), and Floor & Decor Holdings (NYSE:FND).
UBS analysts said a comprehensive look at past cycles shows it's best to be selective with the sector, and right now, there are more questions than answers overhanging the investment debate on the food retail sector.
"Most likely, the uncertainties will keep these stocks hovering in a range for at least the near-term. The net takeaway from our analysis is that it's best to have a defensive posture for the next few months, but maintaining some offensive posture for the longer-term. As soon as the market sees a crest in the rise of rates, it will likely be a sign to switch to more cyclical exposure within the group. hus, our top ideas are: ORLY, DG, TGT, HD, and FND," they declared.
They also said earnings expectations need to be reset lower for many of the companies in the sector.
"Aside from a peak in rates, the other necessary condition for sustained outperformance of the stocks in this group is for estimates to be reset to levels that are perceived to be achievable," they added.
They acknowledged that there are different dynamics across the subsectors that comprise the sector, stating there's a good chance that the more defensive stocks like dollar stores and auto part retailers will continue to outperform in the near term. However, UBS believes there will be a point at which the broad group will "generate superior risk-adjusted return."
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.