Brian Sozzi Discusses September Retail Sales
Brian Sozzi of Wall Street Strategies is out with a research report on on September retail sales.
In his note, Sozzi writes, "Of all the aspects to the September retail sales report today, the upward revision to August was what captured my interest the most. Remember, we originally printed a zero on non-farm payrolls for the month of August, which was then revised to an increase of 57,000. Moreover, July was revised to 127,000 from 85,000 previously. Placing retail sales for July, August, and September alongside the non-farm payrolls numbers hints there could be upside to the overall gloom being painted for the holiday selling season. At the very least, the underlying trends here nicely support the advance in retail stocks from the late August low for the broader market, and relative outperformance to other sectors."
He goes on to talk about stocks that have outperformed in the past two months, and mentions names like Wal-Mart (NYSE: WMT), Target (NYSE: TGT), Costco (NYSE: COST), and dollar stores. He does not give specific names in the space, but the major competitors are Dollar General (NYSE: DG), Family Dollar (NYSE: FDO) 99 Cents Only Stores (NYSE: NDN) and Dollar Tree (NASDAQ: DLTR).
Sozzi concludes his note by saying, "Like I have been saying, not all retailers will win in this choppy consumer recovery; a company either has to be a one-stop shopping destination with promotions or product that are hitting or be the unique player in the marketplace."
