The Top Retail Stocks for 2022, According to Cowen Analysts – Barron’s

Text size

Retailers that specialize in luxury goods and those that are resilient against inflation will do well in 2022, according to Cowen analysts.


Scott Heins/Getty Images

The top retail stocks for 2022 are companies that specialize in luxury goods, and those that are resilient against inflation, according to Cowen analysts.

Investors should look for defensive stocks that perform better during broad market recessions and offer solid returns amid inflation, which will be “significant and semi-permanent,” heading into next year, Cowen analysts wrote in a report published Tuesday.

“Cowen prefers to own stocks tailored toward the high end consumers, and stocks that provide deep value to the lower-end consumers,” wrote lead analyst Oliver Chen. Those include


LVMH Moet Hennessy Louis Vuitton

(ticker: MC:France),


RH
,
(RH), the retailer formerly known as Restoration Hardware,


Brilliant Earth Group

(BRLT),


Costco Wholesale

(COST), and


Walmart

(WMT).

Costco,


Brilliant Earth
,
RH, and


LVMH

can hold steady against inflation thanks to their pricing power and market share, Chen wrote. RH, for example, has about a 4.5% market share of the furniture industry, and Brilliant Earth has about $61 billion of the $300 billion global fine jewelry market, the analysts say.

The firm’s top retail pick for 2022 is department store


Macy’s

(M), which is up about 134% this year. The company has faced pressure to separate its digital operation from its bricks and mortar business, but Cowen says


Macy’s

is accelerating its digital business, which could reach $10 billion in sales by fiscal year 2023. That would account for about 40% of overall revenue, according to Cowen estimates.

Other retail-giant picks include


Target

(TGT) and


Walmart
,
which have successfully merged their physical store operations with digital strategies, Chen wrote. Target, Walmart and Costco are also multicategory stock picks that offer services that include next-day and two-day delivery, curbside pickup, and partnerships with Instacart.

Investors shouldn’t overlook the beauty industry as “consumers’ awareness and preference for health and wellness remain elevated,” the analysts wrote.


E.l.f. Beauty

(ELF),


Olaplex Holdings

(OLPX),


<span class="company-name …….

Source: https://www.barrons.com/articles/top-retail-stocks-2022-lvmh-costco-51640714675

Text size

Retailers that specialize in luxury goods and those that are resilient against inflation will do well in 2022, according to Cowen analysts.

Scott Heins/Getty Images

The top retail stocks for 2022 are companies that specialize in luxury goods, and those that are resilient against inflation, according to Cowen analysts.

Investors should look for defensive stocks that perform better during broad market recessions and offer solid returns amid inflation, which will be “significant and semi-permanent,” heading in…….

Text size

Retailers that specialize in luxury goods and those that are resilient against inflation will do well in 2022, according to Cowen analysts.

Scott Heins/Getty Images

The top retail stocks for 2022 are companies that specialize in luxury goods, and those that are resilient against inflation, according to Cowen analysts.

Investors should look for defensive stocks that perform better during broad market recessions and offer solid returns amid inflation, which will be “significant and semi-permanent,” heading in…….

Leave a Reply

Your email address will not be published. Required fields are marked *