3 Sector Stars Lead Growth: Foot Locker, Shake Shack, Hims & Hers

Core Insights - The U.S. economy continues to show resilience with significant job additions, particularly in the retail, food services, and healthcare sectors, despite some indicators suggesting growth limitations [1][3]. Group 1: Employment Growth and Sector Performance - The latest employment report indicated an increase of 272,000 jobs in May, a notable rise from April's 175,000 [3]. - Key sectors contributing to job growth include retail trade (12,600 jobs), food services (25,300 jobs), and healthcare (68,300 jobs) [3]. - Analysts are focusing on stocks in these sectors, such as Foot Locker, Shake Shack, and Hims & Hers Health, as potential growth opportunities [2][3]. Group 2: Company-Specific Insights - Foot Locker: Current stock price is $25.68 with a price target of $24.80. Analysts project an EPS growth of 40% over the next 12 months, significantly higher than peers like Nike [4][5]. TD Securities has set a price target of $43, indicating a potential rally of 67.3% [5]. - Shake Shack: Current stock price is $92.18 with a price target of $98.53. The company has a gross margin of 37% and is expected to see a 39.2% EPS growth this year. TD Cowen has raised its valuation to $125, suggesting a 35.6% upside [6][7]. - Hims & Hers Health: Current stock price is $20.79 with a price target of $16.14. The company has reported a 41% subscriber growth and is expected to continue this trend, with Canaccord Genuity projecting a price of $24 [8][9]. The Vanguard Group has increased its stake in the company, indicating confidence in its growth potential [8].