Analyst names two retail stocks to buy for 2023
Retail analyst Dana Telsey remains constructive on select retail names for the coming year even though retail sales in November were weaker than expected.
Telsey is bullish on Ralph Lauren
Retail sales were down 0.6% last month versus a narrower 0.3% decline expected. Still, Telsey – the Chief Executive of Telsey Advisory Group has confidence in the resilience of the U.S. consumer.
A name she’s convinced will do particularly well in 2023 is Ralph Lauren Corp (NYSE: RL). On CNBC’s “Squawk Box”, Telsey said:
I feel confident with Ralph Lauren going into 2023 that has expanded the purview of who they are appealing to; a wider audience of generations. I think Ralph Lauren’s coming out ahead.
Last month, the New York-headquartered fashion company raised its earnings outlook after reporting a strong second quarter. Its shares are currently down nearly 15% for the year.
Telsey also likes Abercrombie & Fitch
Consumer prices sure have eased over the past two months (read more) but inflation is still running at an annualised pace of 7.1%. So, the macroeconomic environment is not particularly rosy for the retail space.
Still, another retail stock Telsey recommends owning for the next year is Abercrombie & Fitch Co (NYSE: ANF).
I think they’ve been smart about the way that they are executing both their real estate strategy and their product strategy.
Her “outperform” rating on the lifestyle retailer comes with a price target of $27, which represents a 25% upside from here. Those interested in playing the retail space should also know that retail sales were still up 6.5% versus a year ago in November.
The post <strong>Analyst names two retail stocks to buy for 2023</strong> appeared first on Invezz.