Zacks

The Zacks Analyst Blog Sprouts Farmers, Deckers Outdoor, Chewy and Torrid

Zacks Equity Research
6 min read

In This Article:

For Immediate Releases

Chicago, IL – November 29, 2024 – Zacks.com announces the list of stocks and 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 including Sprouts Farmers Market, Inc. SFM, Deckers Outdoor Corp. DECK, Chewy, Inc. CHWY and Torrid Holdings Inc. CURV.

Here are highlights from Friday’s Analyst Blog:

4 Retail Stocks to Buy as Consumer Confidence Continues to Rise

U.S. consumer confidence — a key determinant of the economy’s health — improved in back-to-back months. According to the Conference Board, the Consumer Confidence Index surged to 111.7 in November 2024, following an upwardly revised reading of 109.6 in October. This uptick in confidence reflects growing consumer optimism about a decline in inflation and more robust hiring.

The improvement in consumer sentiment is an encouraging sign for retailers — Sprouts Farmers Market, Inc., Deckers Outdoor Corp., Chewy, Inc. and Torrid Holdings Inc. — who are poised to benefit from increased consumer spending activity. These companies are well-positioned to capitalize on the growing optimism that is likely to trigger higher demand.

Consumer confidence has now reached a 16-month high, with the victory of Donald Trump potentially being another contributing factor. Present Situation Index, which measures current business and labor market conditions, rose 4.8 points to 140.9, while the Expectations Index, which tracks consumers' short-term outlook on income, business, and labor conditions, jumped 0.4 points to 92.3.

With Americans more confident now, they are likely to make big-ticket purchases and spend more on goods and services, further fueling economic expansion. This, along with the Federal Reserve's proactive monetary policy, particularly lowering the benchmark borrowing rate, has also contributed to a favorable consumer environment.

4 Prominent Retail Stocks

Sprouts Farmers: Enhancing Reach in Natural & Organic Space

Sprouts Farmers’ emphasis on product innovation, technology and targeted marketing with everyday competitive pricing bodes well. The company has been steadily increasing its footprint in the natural and organic space, driven by strong demand in this segment. The introduction of unique and health-oriented products attracts a diverse customer base and drives sales growth. The company has also made substantial investments in e-commerce platforms, online ordering and delivery services to meet the increasing demand for convenience.

and

Recommended Stories