The best time to buy stock in the retail space is the time leading to thanksgiving and not the holiday season according to Bespoke Investment Group Co-Founder, Paul Hickey. During an interview on CNBC, Hickey reiterated that under the current market conditions, Amazon.com, Inc. (NASDAQ:AMZN) Cato Corp (NYSE:CATO) and Children’s Place Inc. (NASDAQ:PLCE) remain some of the best picks in the retail space.
Children’s Place Inc. (NASDAQ:PLCE) remains a top pick for Hickey having posted impressive earnings in recent quarter with the ongoing recovery in the economy expected to have a greater bearing on the company’s sales
“I think they have higher quality clothing than their peers and their competitors, and I think with the increased confidence, you have better employment and lower gas prices. Parents will be willing and able to spend more on their kids this holiday season,” said Mr. Hickey.
Charlotte-based Cato Corp (NYSE:CATO) recently posted yet another improvement in its comparable store sales although it continues to struggle with a slowdown in Comps. A slowdown of sales in the month of October has been blamed on a slowdown on consumer shopping habits especially after the end of the back-to-school holiday season.
Hickey maintains that 3.3% dividend yield that Cato offers should be exciting to anyone willing to take stakes in the company for the long-term. Hickey remains confident on Cato Corp (NYSE:CATO) rallying going forward as historically it has always maintained a 4% average gain 2 weeks into thanksgiving.
Amazon.com, Inc. (NASDAQ:AMZN) has received mixed reaction this year at the back of investors being concerned about the company’s declining profit margins. With the entry of Alibaba Group Holding Ltd (NYSE:BABA) into the U.S online space, Wall Street continues to remain skeptical about the company’s long-term prospects.
“Amazon.com, Inc. (NASDAQ:AMZN) I think pretty much everybody on the street gave up on Amazon and its profitless earnings reports after their last quarter. Stock dropped 10% and now just today it has gained back all that so its pre that earnings report,” said Mr. Hickey.
Hickey remains confident about Amazons performance going forward on the fact that the internet retail space has always registered a gain of 2.8% before and after thanksgiving period.
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