Retail Sales Continue to Soar on Robust Demand: 4 Stocks with Upside

Retail Sales Overview - U.S. retail sales rose 0.6% in August to $732 billion, marking the third consecutive monthly gain, and exceeded the consensus estimate of 0.3% [4][10] - Year-over-year, retail sales increased by 5% in August, with July's figures also revised upward to 0.6% [4] - The growth in retail sales was driven by strong demand across various sectors, including autos, clothing, sporting goods, and restaurants [10] Consumer Spending Insights - Despite inflationary pressures and concerns over the economy, consumer demand remains robust, indicating a willingness to spend [2][6] - Sales at auto dealerships increased by 0.5%, while clothing stores saw a rise of 1%, and restaurant sales grew by 0.7% [5][6] Investment Opportunities - Four retail stocks have been identified as having growth potential: Dutch Bros Inc. (BROS), Casey's General Stores, Inc. (CASY), Urban Outfitters, Inc. (URBN), and Wayfair Inc. (W) [2][10] - These stocks have experienced positive earnings estimate revisions in the past 60 days and carry a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3][10] Company-Specific Highlights - Dutch Bros Inc.: Expected earnings growth rate of 38.8% for the next year, with a Zacks Consensus Estimate improvement of 15.3% over the past 60 days [11] - Casey's General Stores, Inc.: Expected earnings growth rate of 8.7% for the current year, with a Zacks Consensus Estimate improvement of 1.3% [13] - Urban Outfitters, Inc.: Expected earnings growth rate of 8.2% for the current year, with a Zacks Consensus Estimate improvement of 3.4% [15] - Wayfair Inc.: Expected earnings growth rate of over 100% for the current year, with a Zacks Consensus Estimate improvement of more than 100% [17]