Citigroup Thinks Best Buy, Dick's Sporting Goods Are 'Well Positioned To Outshine'
As Black Friday is just a few short days away, Kate McShane of Citigroup commented that Best Buy Co Inc (NYSE: BBY) and Dick's Sporting Goods Inc (NYSE: DKS) are both "well positioned to outshine this holiday."
"Our store checks and industry conversations indicate that while seasonal categories have kicked in, consumers are confused by the early holiday promo noise and are holding out in anticipation of even bigger sales," McShane wrote in a note to clients on Monday.
According to McShane, Best Buy's offerings are more attractive than they were a year ago while the company's ship-from-store from all U.S. locations should help conversion rates. The analyst adds that the company is focused on "winning" the holiday spending while avoiding sharp markdowns across the board.
Dick's Sporting Goods, on the other hand, could be another winner due to the hot activewear category along with strong demand for seasonal outwear and boots, according to McShane. In fact, NRF is forecasting that clothing and accessories will be the No. 1 most-shopped for product this holiday season.
The analyst adds that Dick's Sporting Goods will benefit from "compelling doorbusters" being offered by Under Armour, Nike and VF Corp's The North Face brand.
Best Buy and Dick's Sporting Good were both down by about 0.5 percent Tuesday afternoon.
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