Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Upgrade Now
Zacks
The Zacks Analyst Blog Highlights Dollar Tree, Ulta Beauty, Boot Barn Holdings and The Kroger
Zacks Equity Research
7 min read

In This Article:

For Immediate Release

Chicago, IL – July 20, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dollar Tree, Inc. DLTR, Ulta Beauty, Inc. ULTA, Boot Barn Holdings, Inc. BOOT and The Kroger Co. KR.

Here are highlights from Tuesday’s Analyst Blog:

4 Must-Buy Stocks as Retail Sales Rise Amid Higher Inflation

Consumer spending activity, which is one of the pivotal factors driving the economy, held up last month, as Americans spent more on goods amid heightened inflation. This was clearly evident from retail sales data for the month of June that bounced back after a decline in May. The Commerce Department stated that U.S. retail and food services sales in June rose 1% sequentially to $680.6 billion, following an upwardly revised reading of 0.1% decline registered in May.

A robust job market and decent household finances, thanks to the stimulus checks received in the peak pandemic period, have allowed consumers to shield themselves from inflationary pressure to an extent. But the question industry experts are asking is how long will this last as soaring commodity and gasoline prices as well as rising interest rates have already started pinching consumers' pockets. These also raise concerns about the health of the U.S. economy.

We note that the consumer price index rose 1.3% month on month in June, following an increase of 1% in May. On a year-over-year basis, the metric rose 9.1% — the fastest pace since November 1981. This jump was led by higher gasoline and food grain prices, primarily due to the conflict between Russia and Ukraine. This is enough for the Federal Reserve to take a more aggressive stance.

Category-Wise Sales

The Commerce Department's report suggests that sales at motor vehicle & parts dealers and furniture & home furnishings stores increased 0.8% and 1.4%, respectively, on a sequential basis. Sales at electronics & appliance stores rose 0.4%, while the same at miscellaneous store retailers increased 1.4%. Again, sales at non-store retailers were up 2.2%.

Sales at food & beverage stores increased 0.4%, while at food services & drinking places it grew 1%. At sporting goods, hobby, musical instrument, & book stores, sales advanced 0.8%. Meanwhile, receipts at gasoline stations were up 3.6%, driven by high gasoline prices.

The report also indicates that sales at building material & supplies dealers declined 0.9%, while the same at clothing & clothing accessories outlets fell 0.4%. Sales at health & personal care stores declined 0.1%, while the same at general merchandise stores fell 0.2%.

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories