Retail Sales Surge: ANF, AMZN, COST, WMT Stock Prices Set to Rise

Retail sales recorded strong growth, signaling a robust economy. Abercrombie & Fitch, Amazon, Costco, and Walmart benefited from this trend, potentially boosting investor confidence in their stock prices.

Date: 22-01-2025

AI Rating: 7

Earnings and Growth Outlook: The report highlights the impressive performance of the retail sector, with December retail sales rising 0.4% to reach $729.2 billion. Specific mentions of retailers benefiting include Abercrombie & Fitch Co. (ANF), Amazon.com, Inc. (AMZN), Costco Wholesale Corporation (COST), and Walmart Inc. (WMT).

Abercrombie & Fitch has notably increased its fourth-quarter net sales growth outlook to between 7% and 8%, significantly up from earlier expectations of 5% to 7%. This upward revision indicates strong consumer demand and sales performance, reflecting positively on the company's growth potential.

Amazon's sales and earnings per share (EPS) estimates suggest growth of 10.9% and 82.4%, respectively. This forecasts strong future earnings, driven largely by Amazon's substantial e-commerce operations and Prime membership loyalty.

Costco is expected to achieve sales and EPS growth of 7.2% and 11.8%, respectively, reinforcing its strong if not slightly restrained growth outlook relative to industry peers. Lastly, Walmart also reflects positive potential with estimated sales and EPS growth of 4.8% and 11.3%, respectively, as it embraces technology and strengthens its market presence.

Stock Ratings: Abercrombie holds a Zacks Rank #1 (Strong Buy), while both Amazon and Costco are also strong performers according to current stock rankings. Walmart stands at Zacks Rank #2 (Buy), indicating overall positive sentiment in these stocks.

Conclusion: In summary, the retail sector's resilience and the particular performance of these companies signal a bullish outlook for their respective stock prices. Given the retail sales results and the expected growth in EPS and revenue, investors may view ANF, AMZN, COST, and WMT as worthwhile considerations for their portfolios.

Stocks: ANF AMZN COST WMT