The Zacks Analyst Blog Highlights: L Brands, Citi Trends, Levi Strauss, Boot Barn Holdings and Buckle

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Zacks Equity Research
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For Immediate Release

Chicago, IL – April 13, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: L Brands, Inc. LB, Citi Trends, Inc. CTRN, Levi Strauss & Co. LEVI, Boot Barn Holdings, Inc. BOOT and The Buckle, Inc. BKE.

Here are highlights from Monday’s Analyst Blog:

5 Apparel Stocks to Buy as Industry Tries to Bounce Back

The retail sector has been one of the biggest casualties of the pandemic, with the apparel and footwear segment suffering the most. As the pandemic took a worse turn early last year, stores got closed and people got confined to their homes.

This saw apparel sales taking a major hit. However, things finally seem to be looking up given that the vaccination drive is in full swing and another round of stimulus checks is reaching millions. People are slowly gaining confidence and spending, which has seen apparel sales picking up.

Apparel Sales Jump in March

According to the latest Mastercard SpendingPulse, apparel sales grew a whopping 60.6% on a year-over-year basis in March. Last year was grim for the apparel industry. With millions confined to their homes due to the COVID-19 induced lockdown and fears of contracting the virus, not too many spent on apparels.

Moreover, stores too had to be closed down and thousands lost their jobs. This saw people spending more on necessities like groceries and less on consumer discretionary products. However, things have changed a lot over the past few months. A new round of stimulus has now given people more purchasing power and they are spending more confidently.

Apparel Market Poised to Grow

The 60.6% growth may look too high on a year-over-year basis but that is because apparel sales had come almost to a standstill last year. Even then, the picture is bright as the sales in March were 18.7% higher than March 2019.

In fact, not only apparel sales, the retail sector too is trying to bounce back as people are spending more freely. According to the Mastercard SpendingPulse, retail sales grew 56.8% in March on a year-over-year basis.

Understandably, the entire retail industry is trying to get back on its feet and apparel sales are rising as a result of this. According to Research and Markets, the global apparel market was valued at $527.1 billion in 2020, after declining 0.6% since 2015.

The historic decline was mainly due to the lockdown and social distancing measures imposed by various governments owing to the pandemic. However, the market is expected to bounce back and witness a CAGR of 9.8% and reach $842.7 billion by 2025, and further soar to $1,138.8 billion in 2030.

Our Choices

New cases of coronavirus have been declining for the past few weeks and three vaccines have already been rolled out. This has seen people gain some confidence and they have once again started spending on apparel and footwear. This is thus the right opportunity to invest in apparel stocks that have a strong online presence.

L Brands evolved from an apparel-based specialty retailer to a segment leader focused on women's intimate and other apparel, personal care, beauty and home fragrance products. 

The company's expected earnings growth rate for next year is 39.6%. The Zacks Consensus Estimate for current-year earnings has improved 41.2% over the past 60 days. L Brands sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Citi Trends is a value-priced retailer of urban fashion apparel and accessories for the entire family.

The company's expected earnings growth rate for the current year is 26.1%. The Zacks Consensus Estimate for current-year earnings has improved 28.8% over the past 60 days. Citi Trends sports a Zacks Rank #1.

Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. 

The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the past 60 days. Levi Strauss sports a Zacks Rank #1.

Boot Barn Holdings operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. The company's products include boots, denim, western shirts, cowboy hats, belts and belt buckles, and western-style jewelry and accessories.

The company's expected earnings growth rate for the current year is 3.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. Boot Barn Holdings carries a Zacks Rank #2 (Buy).

Buckle is a leading retailer of medium to better-priced casual apparel, footwear, and accessories for fashion-conscious young men and women.

The company's expected earnings growth rate for the current year is 3.4%. The Zacks Consensus Estimate for current-year earnings has improved 18.5% over the past 60 days. Buckle has a Zacks Rank #2.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for "stay at home" technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Citi Trends, Inc. (CTRN) : Free Stock Analysis Report
 
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
 
Buckle, Inc. The (BKE) : Free Stock Analysis Report
 
L Brands, Inc. (LB) : Free Stock Analysis Report
 
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
 
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