• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

DA Davidson upbeat on retail stock post election, cautious on holiday season

by November 29, 2024
written by November 29, 2024

Investing.com — Analysts at DA Davidson are optimistic on retail stock outlook following the 2024 election, but remain cautious about the sector’s near-term prospects in the holiday season.

“Our group usually underperformed from Black Friday through year end,” wrote analyst Michael Baker in the note, pointing to the 0.3% rise in SPDR S&P Retail ETF (NYSE:XRT) on average from the pre-Thanksgiving market close to year-end, since 2010.

In fact, the retail ETF has underperformed the broader market in 10 of the past 14 holiday seasons.

The analysts pointed out that stocks with high holiday exposure tend to see the steepest declines, including those of retailers like Dick’s Sporting Goods Inc (NYSE:DKS) and Best Buy Co Inc (NYSE:BBY), which derive a significant portion of their profits from the fourth quarter.

While companies like Lowe’s (NYSE:LOW) and Home Depot (NYSE:HD), have historically fared better, posting average gains of 5.1% and 3.7%, respectively, during the holiday period.

Analysts anticipate retail stocks could see stronger performance in the first quarter of 2025. The XRT typically to do better in January and February, with the sector historically outperforming the broader market in the first quarter, as investors move past the uncertainty of holiday results.

Year-to-date, retail stocks have performed well, with XRT up 14.6% as of November, though it remains behind the S&P 500’s 25.8% gain. Within DA Davidson’s 14-name coverage of traditional retailing, “Broadlines & Hardlines”, nearly half, including Walmart Inc (NYSE:WMT) and Costco Wholesale Corp (NASDAQ:COST), have outperformed the market, the analysts added.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Stock market today: S&P 500 closes at record to wrap up best month of 2024
next post
Manufacturing PMI, ISM data to shape market sentiment Monday

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Trump implies government could cut contracts and subsidies to Musk’s companies

      June 7, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (505)
    • Stock (6,426)

    Latest News

    • Trump implies government could cut contracts and subsidies to Musk’s companies
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

    Popular News

    • TikTok warns of broader consequences if US Supreme Court allows ban
    • Goldman Sachs adds Norwegian Cruise Line, Uber to US conviction list

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy