With the holiday season approaching, shopping seems to be reaching its frenzy and investors are inquisitive more than ever to identify stocks which they should invest in to accrue sizeable returns. To this effect, CNBC called upon Paul Hickey, co-founder of Bespoke Investment Group, to provide a few pointers and the names which he came up with pertain to three stocks from the retail sector namely Children’s Place Inc (NASDAQ:PLCE), Cato Corporation (NYSE:CATO) and Amazon.com inc (NASDAQ:AMZN).
Children’s Place Inc (NASDAQ:PLCE) is one of North America’s well-known manufacturers of specialty apparel in children’s pure-play sector and something that makes this stock attractive is good performance by the company. So far, it has shown 6.2% gain in the run-up to the holiday season and overall confidence in this company is relatively on the higher side owing to the fact that it stands to benefit from lower gas prices. Capitalizing on its positive image, Children’s Place Inc (NASDAQ:PLCE) announced o 11th November, 2014 that it intended to webcast its Q3 results. It even extended an invitation to everyone to participate in its live conference which is scheduled for Thursday, 20th November, 2014.
Cato Corporation (NYSE:CATO) is a fashion retailer whose target segments are kids, girls and men wherein they offer a wide range of choices from sportswear to lingerie, jewelry and handbags under its labels ‘Fashion’ and ‘Plus’. Adding to the attraction is the fact that the company has surpassed market expectations for five months in a row and offers a dividend yield of 3.3%.
Amazon.com Inc (NASDAQ:AMZN) is the third retail giant which has featured in the list of lucrative retail stocks mainly because it has not only managed to erase all its past losses but has also announced debut pilots for its 2015 season of its streaming service. It is a pot-pourri of four comedies, two dramas and documenting series based on New York and is meant to kick-start the new season for Amazon.com Inc (NASDAQ:AMZN). A further boost for Amazon.com Inc (NASDAQ:AMZN) came when Goldman Sachs observed in its analysis that the online retail giant had broadened its lead in toys and consumer electronics categories.
Overall, the best time to invest in retail stocks is in the run-up to Thanksgiving and with three alternatives, it should end up being satisfactorily profitable.
This article has been written by Vinita Basu.