What a crazy couple of years this has been. The stock market was pummelled in April 2020 but made a strong comeback to now reach all-time highs. Unfortunately, this has not been good for US MSOS cannabis stocks which I do believe can only get better moving forward as legalization occurs in the United States.
However, I wanted to talk about this 4th quarter and retail stocks which I am bullish on. This is a nice short term trade which should do well for the next 2 months. I don’t know what 2022 will hold for these retail stocks but I do know that retail stocks that have enough staffing to handle all the shoppers and enough inventory to sell to the shoppers will do just fine this quarter and most likely will exceed expectations.
First off on my list is Foot Locker (FL) which has been on a nasty dip from a high at $66 to an immediate low at $45. It is currently bouncing off that low and looks to be ready to climb all the way back up. Remember, Foot Locker also has an investment stake into GOAT which is an online marketplace for shoe trading and buying. Foot Locker is trading at a very cheap PE at 5. This stock is an easy win to exceed the low expectations set by wall street and get a nice return for the 4th quarter. TipRanks gives a price target of $68 giving a solid return of 38%.
Next, on my stocking stuffer list is Nordstrom (JWN) which also had a similar bearish downturn like Foot Locker but also has hit a nice bounce recently. The stock was at a high of $46 and then just recently bounced off a low at the $26. TipRanks sees the stock with a price target of $36.44 giving a nice 25% return.
Last on my list, Caleres (CAL) is another unloved name with only one analyst covering on TipRanks. Caleres is a footwear company that owns multiple footwear brands and stores. The company had a great earnings in the past quarter but it also provided a great guidance for the upcoming quarter. It is rare to find a retail company that is providing guidance currently. They will have a nice rebound in their retail portfolio. Stock is at $23 right now with a TipRanks target of $35 giving an outstanding 48% return. This makes Caleres the best stock to own of the three I discussed above.