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Best Buy Co Inc (BBY), Home Depot Inc (HD), Starbucks Corporation (SBUX): Tom Stemberg’s Prediction On Holiday Performance

The holiday shopping season is again with us, and investors want to know which retailers are going to win or lose at the end of it all. On CNBC’s Street Signs, Staples, Inc. (NASDAQ:SPLS) co-founder and former CEO, Tom Stemberg, discussed some interesting names in the retail space. He looked at names such as Best Buy Co Inc (NYSE:BBY), The Home Depot Inc (NYSE:HD) and Starbucks Corporation (NASDAQ:SBUX).

Best Buy Co., Inc. (NYSE:BBY)

According to Stemberg, this holiday season would not be great but still good enough for retailers to achieve better sales. However, not everyone in the retail space would win this time around.

“[….] apparel retailers will be losers. There is too many in the name. But if you just sell more of the same kind of ready to wear as everybody else I think you will be a loser [….],” stated Stemberg.

Stemberg cited that there are a number of positives in favor of the consumers, of which such should boost holiday sales this year. He mentioned things such as the low mortgage interest rates and a decline in gasoline prices, which means that savings on these fronts can lead to more retail purchases.

“So I think you will see companies like Best Buy Co Inc (NYSE:BBY), who has taken on Amazon head-on, I think doing the right thing – processing in-store sales. I think they are doing great,” said Stemberg.

Best Buy Co Inc (NYSE:BBY) is a retailer of electronic products. According to a report by the USA Today, the company posted better than expected results in its 3Q. It generated sales of $9.4 billion for the quarter and earned $0.32 per share.

Analysts expected Best Buy Co Inc (NYSE:BBY) to generate sales of $9.11 billion and earnings of $0.25 per share for the quarter.

Stemberg stated that home improvement and automobile retailers will generally do well this holiday season. He went on to say that he loves the stock of Home Depot Inc (NYSE:HD), a home improvement retailer. The retailer is expected to be a winner this holiday shopping.

Starbucks Corporation (NASDAQ:SBUX) is another excellent company in the view of Stemberg. He said that the coffee stores operator has stood very well, showing signs of positive performance this holiday season.

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