5 Hot Retail Stocks To Buy Now

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#4. Ulta Beauty Inc (NASDAQ:ULTA)

What if I told you there was a company that sold beauty products and it traded at $270 a share? You would think I was crazy. But just look at Ulta Beauty Inc (NASDAQ:ULTA) for proof. This retailer rose from close to nothing in 2008 and today is the leader in the beauty industry. While other retailers struggle to sell beauty products, Ulta Beauty Inc (NASDAQ:ULTA) makes it look easy.

Revenue continues to grow annually and net sales are expected to be up 21% for the fiscal year 2017. They are committed to opening 100 or more stores each year (they currently operate close to 900 stores) and are growing their online presence. Currently, Ulta estimates just 6% of their overall sales come from online purchases, but this number increased 47% in fiscal year 2016.

In other words, Ulta Beauty Inc (NASDAQ:ULTA) looks pricey at $270 a share but the reality is that it has a lot of room to grow.

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#5. Burlington Stores Inc (NYSE:BURL)

The off-price store is positioned nicely for a positive 2017 and beyond. As consumers continue to look for value when it comes to clothing, they flock to stores like Burlington, TJ Maxx and Ross. And as more department stores like Macy’s are closing, this means more potential traffic and sales at the off-price stores.

As of the third quarter, Burlington Stores Inc (NYSE:BURL) same store sales rose 3.7% and sales climbed to $1.34 billion, beating estimates. The company increased full-year earnings per share range to $3.11 – $3.15 compared to $2.92 – $2.96.

While it will be interesting to see if they can hit this increased guidance, one thing is for sure. People will continue shopping at off-price retailers, regardless if the economy is growing or slowing, which makes Burlington Stores Inc (NYSE:BURL) a buy.

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Final Thoughts

The disappointing holiday season took its toll on the retail sector. As usual with bad news, everyone gets hit, even the ones that are doing well. As a result, these are buying opportunities to get in on some hot retail stocks that are trading at a discount.

With strong growth numbers and solid plan for the future, the time to buy these stocks is now.

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

About the Author:Jon Dulin

Jon writes for Money Smart Guides, a personal finance blog that helps readers get out of debt and start investing for their future. He has been investing since he was 16 and has learned a lot through the years. He uses these investment lessons to help him be a more successful investor today.
Note: This post was originally published on ModestMoney.com. Check out their site for the latest investing news and analysis.
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