For immediate release
Chicago, IL – December 23, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Recent stocks featured in the blog include: The Children’s Place, Inc. PLCE, Capri Holdings Ltd. CPRI, Boot Barn Holdings, Inc. BOOT and Tapestry, Inc. TPR.
Here are highlights from Wednesday’s analyst blog:
4 clothing stocks close to continuing to achieve a winning streak in 2022
As the challenges inflicted by the coronaviruses persist, the clothing industry is gradually coming out of the woods and is now poised for a full recovery in 2022. The pandemic has hit the industry hard as virus-wary buyers have remained confined to the home , resulting in lower demand and consequently a severe blow to sales. But with the economy reopening, the easing of restrictions linked to the pandemic, and the acceleration of outward movements, the garment industry has flourished.
With Americans refreshing their wardrobes, through the resumption of active social lifestyles, events and occasions, the industry has witnessed a resurgence in demand. Sales in clothing and clothing accessories stores have increased as more and more people venture out. Indeed, the pandemic relief program and the intensification of vaccinations have played a major role in building consumer confidence.
According to the Commerce Department, clothing and clothing accessories store sales increased 34.8% year-over-year in November 2021. This follows a 26.7% increase in October by compared to the period of the previous year. Apparel businesses will spare no effort to exploit any increase in demand, unless the new COVID-19 variant – Omicron – derails, which is spreading rapidly, posing a threat to economic recovery.
Trends to watch in 2022
While inventory management, improving the supply chain and realigning the cost structure will be paramount in 2022, investments to accelerate digitization will also be accelerated. Industry participants will continue to focus on membership programs, upgrading store technology and omnichannel capabilities, mobile app shopping, last mile delivery solutions and training. an alliance with native digital retailers.
Industry players have aggressively adopted strategies and made planned investments to meet customer demand in-store or online. Undeniably, expedited delivery services such as door-to-door delivery, curbside pickup or online purchase and in-store pickup as well as the contactless payment gateway will continue to play a crucial role in maximizing the share of client portfolios.
Industry experts said companies also need to rework assortments to meet emerging trends in the post-pandemic world, including a more personalized approach. Apparel companies also need to increase product visibility on online platforms, improve customer engagement on social channels, and make logistical improvements.
That said, we’ve shortlisted four clothing stocks that are Zacks # 1 (strong buy) or 2 (buy), have a market cap of over $ 1 billion, and are up over 20% to the top. ‘now this year. You can see The full list of today’s Zacks # 1 Rank stocks here.
4 important choices
The place of children, a specialty children’s clothing retailer, is worth the bet. The company has consistently deployed resources to expand product offerings, upgrade distribution channels, build seamless omnichannel capabilities, and deepen customer engagement. The structural changes that took place in the company last year and the gradual digital investments made before the pandemic have contributed to its performance.
The Children’s Place net income has significantly exceeded Zacks’ consensus estimate over the past four quarters. Zacks’ consensus estimate for The Children’s Place’s earnings per share (EPS) for fiscal 2022 has risen 16.4% in the past 60 days. The stock sports a Zacks Rank # 1.
You can invest in Capri’s farms. The company has strengthened its position in the luxury fashion space and seeks to maximize the potential of the Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
Capri Holdings ‘net income has outperformed Zacks’ consensus estimate by a large margin over the past four quarters. This Zacks Rank # 1 company has an estimated long-term profit growth rate of 32.2%. Zacks ‘consensus estimate for Capri Holdings’ next fiscal year, EPS has risen by a dime in the past 30 days.
We also suggest you to bet on Boot barn. This lifestyle retailer of Western and work shoes, clothing and accessories has managed to navigate a difficult environment, thanks to merchandising strategies, omnichannel capabilities and better expense management as well as marketing. This, combined with the expansion of the store base, has helped the company gain market share and strengthen its position in the industry.
Impressively, Boot Barn Holdings has a surprise four-quarter profit of 35.3%, on average. This Zacks Rank # 1 company has an estimated long-term profit growth rate of 20%. Zacks ‘consensus estimate for Boot Barn Holdings’ next fiscal year, EPS has moved north 1.2% in the past 30 days.
Tapestry, the supplier of luxury accessories and branded lifestyle products, is another potential choice. The company benefited from the successful execution of the acceleration program. The program aims to transform the company into a leaner and more responsive organization. He intends to develop significant data and analytics capabilities, focusing on improving digital and omnichannel capabilities and operating with a clearly defined path and strategy for each of his brands, namely Coach , Kate Spade and Stuart Weitzman.
Tapestry has averaged a 29% surprise over the past four quarters. This Zacks Rank # 2 company has an estimated long-term profit growth rate of 12.3%. Zacks’ consensus estimate for Tapestry’s next fiscal year has risen 7.7% in the past 60 days.
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Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
The Children’s Place, Inc. (PLCE): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Capri Holdings Limited (CPRI): Free Stock Analysis Report
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