Vera Bradley (NASDAQ:VRA) is a retail stock worth betting on due to its attractive valuation and impressive growth rate. Further, the company should benefit from a strong economy and supply chain improvements.Retail stocks have struggled during the pandemic. At first, many retail stores were shut down in many parts of the country. Even when stores were allowed to reopen, foot traffic never recovered to previous levels.
Then, as case counts declined and vaccinations increased, there was a boom in retail sales, as there was pent-up demand to shop in stores and consumers were eager to spend their stimulus dollars. As a result, retail shares were among the biggest gainers in the first half of 2021. Since then, the delta variant has created a more gloomy outlook for consumer spending with higher costs eating into discretionary income.
This has resulted in a sharp pullback for retail stocks. However, there are some good reasons to believe that the dip in retail stocks could be a buying opportunity, given the recent drop in coronavirus cases, reports of improvements in supply chains, declines in shipping rates, and healthy levels of wage growth. Therefore, investors should look to buy the dip in high-quality retail stocks like Vera Bradley (VRA).