Top 10 Retail Stocks To Watch Right Now

The death toll from a devastating fire in a clothing factory in Bangladesh 17 days ago surpassed 1,000 souls Friday, all because of suppliers' complete disregard for corporate requirements around building safety and workplace conditions. The implications for major retailers and apparel manufacturers are significant. While companies are responding in various ways, one thing is certain: This is an important issue for consumers and investors to monitor going forward.

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On April 24, the eight-story Rana Plaza complex of clothing factories near Dhaka, Bangladesh, collapsed. More than a thousand lives were snuffed out in the service of a murky global supply chain of cheap textiles that generally goes completely unnoticed. Perhaps that's about to change.

Clothing retailers rightly worry about brand damage when something like this happens. In the ashes of a similar fire that killed at least 117 people less than six months ago, sweatshirts emblazoned with Disney characters bound for Wal-Mart (NYSE: WMT  ) turned up. Since then, Wal-Mart has introduced stricter fire-safety audits and a zero-tolerance policy toward contractors' use of unauthorized factories.

Top 10 Retail Stocks To Watch Right Now: Starbucks Corporation(SBUX)

Starbucks Corporation purchases and roasts whole bean coffees. It operates approximately 16,858 stores, including 8,833 company-operated stores and 8,025 licensed stores. The company offers approximately 30 blends and single-origin premium arabica coffees. It also provides handcrafted beverages, such as fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno smoothies, and Tazo teas; and merchandise products, including home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books, and gift items. In addition, it offers fresh food items, which comprise baked pastries, sandwiches, salads, oatmeal, yogurt parfaits, and fruit cups. Further, it also provides VIA ready brew coffee, bottled frappuccino beverages, discoveries chilled cup coffee, doubleshot espresso drinks, iced coffee, whole bean coffee, and ice creams. The company?s brand portfolio includes Tazo tea, Ethos water, Seatt le?s Best Coffee, and Torrefazione Italia Coffee. Starbucks Corporation sells its products in approximately 50 countries worldwide. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Andrew]

  The CEO of Starbucks is a genius.  This guy gets it and he’s really on top of his game internationally.  Expensive coffee is really all about branding and Starbucks is just taking over the world.  Their brand management is unreal and somehow they’ve been able to make their logo almost like a luxury item.  It’s even cooler in Asia than anywhere else in the world.  They are moving westward in China and are planning on ripping it up in India.  I’ve personally had the experience to watch Starbucks go from almost nothing to a huge success story in a country that didn’t drink coffee.  I know the analysts like the stock but I think the company will do better than anyone can even imagine over the next couple of years.

• [By Michael Fowlkes]

  Starbucks, the gourmet coffee chain, is once again growing. The company closed a great number of locations during the recession, but recently announced that it was going to be opening at least 1,500 new locations over the next five years. The company is quickly growing in Asia, and by the end of next year it plans to have 1,000 locations in China, and close to that number in Japan as well. Fourth quarter earnings came in above expectations, and revenues were $3.36 billion, up from $3.03 billion during the same period last year.

  The recession was tough on Starbucks, as consumers cut back on the expensive coffee, but we are seeing clear signs that they are once again buying. Starbucks has done a good job revamping its menu to keep up with current trends, and recently acquired Teavana, which will allow it to broaden its tea selection and attract a whole new group of customers. All signs are pointing to a strong 2013 for Starbucks.

• [By George Putn]

  The king of the coffee shop movement is Starbucks. After overly aggressive expansion and a lack of focus that hurt shares, the company has rebounded nicely in the past 18 months. For the year, shares are up 21%, including a slight pull-back during this recent correction. The company is one of the best performers in the market, and that trend is likely to continue.

  Analysts expect Starbucks to make a profit of $1.52 per share this year, growing 20% to $1.82 in the following year. Investors need to pay a premium of 25 times this year’s expected earnings, but the price is well worth it.

Top 10 Retail Stocks To Watch Right Now: Macy’s Inc (M)

Macy�s, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The company also operates Bloomingdale�s Outlet stores that offer a range of apparel and accessories, including ready-to-wear, shoes, fashion accessories, jewelry, handbags, and intimate apparel products. As of January 28, 2012, it operated approximately 840 stores under the names of Macy�s and Bloomingdale�s; and 7 Bloomingdale�s Outlet stores, as well as macys.com and bloomingdales.com. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy�s, Inc. in June 2007. Macy�s, Inc. was founded in 1820 and is based in Cincinnati, Ohio.

Advisors' Opinion:

• [By Dividend Stocks Online]

  Rating: 95/100. Mattel has a dividend yield of 3.1% and a 5 year dividend growth rate of 10.2%. It has raised its dividend for the last 3 years and has a payout ratio of 46%. Mattel has a 3 year net income growth rate of 26.5% and the stock is up 31% over the last 12 months. We would like to see a higher dividend yield and consistent annual dividend increases from Mattel before we can rate the stock higher.

10 Best Freight Stocks To Buy Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Top 10 Retail Stocks To Watch Right Now: Dollar General Corporation(DG)

Dollar General Corporation operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. The company offers consumables, including paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies; packaged food and perishables; beverages and snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; over-the-counter medicines and personal care products; and pet supplies and pet food products. It also provides seasonal products consisting of decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid cell phones and accessories, gardening supplies, hardware, and automotive and home office supplies; home products comprising kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies, and bed and bath soft goods; and apparel products, such as casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as offers socks, underwear, disposable diapers, shoes, and accessories. In addition, the company holds a license to Bobbie Brooks clothing, as well as the Fisher Price brand for various items of children's clothing. As of May 25, 2011, it operates approximately 9,500 stores in 35 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Advisors' Opinion:

• [By Stockpickr]

  Dollar General (DG), which is set to release numbers on Tuesday before the market open. This company operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern U.S. Wall Street analysts, on average, expect Dollar General to report revenues of $3.54 billion on earnings of 48 cents per share.

  A company like Dollar General that offers discounted good should be thriving and succeeding easily in this current economic environment of slow growth and anemic job growth. This company missed Wall Street estimates last quarter after beating estimates during the prior two quarters. Net income has been trending up for the past three quarters and revenues have trended higher for the past four quarters.

  If this company sees a move back into a recession for the U.S., then expect them to guide higher and for the stock to surge post-earnings as the shorts cover their bets. The current short interest as a percentage of the float for Dollar General is a notable 7.7%. That means that out of the 99.06 million shares in the tradable float, 7.66 million are sold short by the bears.

  From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. The stock has also just today started to break out above some near-term overhead resistance at around $33.30 a share.

  One way to play this stock is to buy some out-of-the-money call options ahead of the quarter if you think this company is going to guide higher and attract some buyers. Since the stock is trending strong and not far off its 52-week high of $35.09, an options bet could pay off here. By playing the call options you risk will be defined to whatever you decide to put into the trade.

  Another less risky way to play this is to simply wait until after they report and only buy the stock if it breaks out on solid volume. I would be a buyer once it trades above $35.09 on volume tracking close to or greater than its three-month aver! age volume of 1.7 million. Keep in mind that $34 to $35 a share on this stock has marked tough resistance all year, so a breakout above those levels would be significant for the bulls.

  I would only short this name if you see it drop below its 50-day moving average of $32.71 a share following their earnings report. I would add to any shorts if it then takes out its 200-day moving average of $31.30 a share, and target $29 or lower if the bears knock this lower post-earnings.

• [By Guru Focus]

  EVP & CFO of Dollar General (DG) David M Tehle sold 45,981 shares on 09/14/2011 at an average price of $33.71. Dollar General Corporation is a discount retailer in the United States. Dollar General has a market cap of $13 billion; its shares were traded at around $38.07 with a P/E ratio of 18.8 and P/S ratio of 0.9.
  
  For its second quarter 2011 results, Dollar General reported total sales increase of 11.2%. The company also reported adjusted net income of $181 million – a 25% increase from last year.
  
  Chairman & CEO Richard W Dreiling sold 170,000 shares of DG stock on 09/14/2011 at the average price of 33.71. EVP & CFO David M Tehle sold 45,981 shares of DG stock on 09/14/2011 at the average price of 33.71. David M Tehle owns at least 9,140 shares after this. The price of the stock has increased by 12.93% since. 10% Owner Sachs Group Inc Goldman, Director Adrian M Jones, and Fund Holdings L.p. Kkr all sold shares of DG stock during the past week.

Top 10 Retail Stocks To Watch Right Now: AutoZone Inc.(AZO)

AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company?s stores offer various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Its automotive hard parts product line includes A/C compressors, batteries and accessories, belts and hoses, carburetors, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition, lighting, mufflers, starters and alternators, water pumps, radiators, and thermostats. The company?s maintenance items include antifreeze and windshield washer fluid; brake drums, rotors, shoes, and pads; chemicals, including brake and power; steering fluid, oil, and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paint and accessories; refrigerant and accessories; shock absorbers and struts; spark plugs and wires; and windshield wiper s. Its discretionary product line comprises air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, and wash and wax products. The company also offers commercial sales program that provides the delivery of parts and other products to local, regional, and national repair garages, dealers, service stations, and public sector accounts. In addition, it sells the ALLDATA brand automotive diagnostic and repair software through the Website, alldata.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through the Website, autozone.com. As of May 7, 2011, the company operated 4,467 stores in the United States and Puerto Rico, and 261 stores in Mexico. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee.

Advisors' Opinion:

• [By Curtis Hesler]  

  AutoZone Inc. (NYSE: AZO ) has now been on the Top 5 List for seven consecutive months! and on July 14, AZO broke through its 52-week high. The company also remains remarkably steady in terms of financial health and it receives top marks for buying pressure. Earnings will be released in mid-September and should be impressive. As Americans drive their older cars longer and delay big ticket purchases like new autos, AZO is a good buy.

• [By Paul]

  Timothy W Briggs, who is a Senior Vice President at AutoZone Inc. (NYSE:AZO), sold 12,830 shares on Sep 26 at $324.83 per share for a total value of $4,167,574. About the company: AutoZone, Inc. is a specialty retailer of automotive replacement parts and accessories. The Company offers an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. Autozone operates in United States and Puerto Rico, and Mexico.

Top 10 Retail Stocks To Watch Right Now: Kohl's Corporation(KSS)

Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.

Advisors' Opinion:

• [By Dug]

  With its value-priced merchandise, private label, and brand-name goods, Kohl's is part department store and part discounter. "It's not quite as high-end as Macy's, or as low as Wal-Mart," says Resendes. The near-term outlook for retailers is gloomy, but Kohl's should be in a good position when the economy rebounds, he says. "A lot of consumers have migrated to Wal-Mart in terms of price, but they'll migrate back up, and a natural first stop is going to be Kohl's." Another plus: Kohl's doesn't offer store credit cards, "so defaults aren't hanging over its head," says Resendes. "That will be a great strength when we exit this economic turmoil." He sees a 25 percent upside to the company's shares, which recently traded at $38.

• [By Kevin1977]  

  Kohl’s Corporation operates department stores in the United States. KSS recently traded at $45.1 and has a 2.2% dividend yield. KSS lost 1.7% during the past 12 months. The stock has a market cap of $12.7 billion, P/E ratio of 11.3 and forward P/E ratio of 8.9. The stock has total debt/equity ratio of 0.24 and Beta of 0.93.

Top 10 Retail Stocks To Watch Right Now: Caseys General Stores Inc.(CASY)

Casey?s General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey?s General Store, HandiMart, and Just Diesel names in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. Its stores offer foods, beverages, dairy and bakery products, sandwiches, fountain drinks, donuts, cookies, brownies, Danish rolls, ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites. The company?s stores also provide nonfood items, which include tobacco products, health and beauty aids, school supplies, house wares, pet supplies, photo supplies, and automotive products. In addition, it offers gasoline or gasohol for sale on a self-service basis. As of July 31, 2011, the company operated 1,665 stores. The company was founded in 1959 and is headquartered in Ankeny, Iowa.

Top 10 Retail Stocks To Watch Right Now: Spectrum Brands Holdings Inc.(SPB)

Spectrum Brands Holdings, Inc., together with its subsidiaries, operates as a consumer products company worldwide. It offers consumer batteries, including alkaline and zinc carbon batteries, rechargeable batteries and chargers, and hearing aid batteries and other specialty batteries; pet supplies, such as aquatic equipment and supplies, dog and cat treats, small animal foods, clean up and training aids, health and grooming products, and beddings; and home and garden control products comprising household insect controls, insect repellents, and herbicides. The company also provides electric shaving and grooming devices; small appliances, including small kitchen appliances and home product appliances; electric personal care and styling devices; and portable lighting. Its sells its products through various trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors, and original equipment manufacturers primarily under t he Rayovac, Remington, Varta, George Foreman, Black & Decker, Toastmaster, Farberware, Tetra, Marineland, Nature?s Miracle, Dingo, 8-in-1, Littermaid, Spectracide, Cutter, Repel, Hot Shot, Black Flag, and TAT brands. The company was headquartered in Madison, Wisconsin. As of January 7, 2011, Spectrum Brands Holdings, Inc. operates as a subsidiary of Harbinger Group Inc.

Top 10 Retail Stocks To Watch Right Now: Radioshack Corporation(RSH)

RadioShack Corporation engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Its products include postpaid and prepaid wireless handsets and communication devices, such as scanners and global positioning system (GPS) products; home entertainment, wireless, music, computer, video game, and GPS accessories; media storage, power adapters, digital imaging products, and headphones; home audio and video end-products, personal computing products, residential telephones, and voice over Internet protocol products; digital cameras, digital music players, toys, satellite radios, video gaming hardware, camcorders, and general radios; general and special purpose batteries and battery chargers; and wires and cables, connectivity products, components and tools, and hobby products. The company also provides consumers access to third-party services, such as prepaid wireless airtime and extended service plans in its ser vice platform. In addition, it manufactures various products, including telephones, antennas, wires, and cable products, as well as various hard-to-find parts and accessories for consumer electronics products; and provides repair services. As of March 31, 2011, the company operated 4,467 company-operated retail stores under the RadioShack brand name in the United States; and 1,304 kiosks located in Target and Sam?s Club stores. As of December 31, 2010, it operated 211 company-operated stores under the RadioShack brand, 9 dealers, and 1 distribution center in Mexico; a network of 1,207 RadioShack dealer outlets, including 34 located outside of North America; and 4 distribution centers in the United States. Further, the company sells its products through its Website, radioshack.com. RadioShack Corporation was founded in 1899 and is based in Fort Worth, Texas.

Advisors' Opinion:

• [By Hutchinson]

  Radio Shack (RSH) is “exploring strategic alternative including a possible sale of the company,” the New York Post reports this morning. Citing “people close to the situation,” the Post says the electronics chain could be sold for over $3 billion. (Which isn’t all that stunning a figure, given the company’s $2.7 billion market cap.)

  The report says investment bankers for the company have already begun pitching private equity firms about a potential LBO of the retailer. Also possible: a merger with Best Buy (BBY), the story says. Another option: a massive stock repurchase program.

  RSH this morning is up $1.21, or 5.6%, to $23.01.

• [By David Sterman]

  Perhaps the closest catalyst is for this consumer-electronics retailer, which will commence a new sales agreement with Verizon (NYSE: VZ) on Thursday, Sept. 15. Verizon controls roughly 40% of the wireless market, so the new relationship is bound to bring a lot more foot traffic than past relationships with other carriers such as Sprint (NYSE: S) and T-Mobile.
  
  And for this type of business, foot traffic is the name of the game. RadioShack needs people to visit stores and browse for hot products. These customers may not make their intended purchase that day, but they often leave with other items such as batteries, Bluetooth headsets, GPS devices, etc. If investors take note of any uptick in RadioShack's traffic, then they may stick around long enough to notice this stock's financials are hugely appealing. Sure, growth has been anemic, but RadioShack has still managed to generate very strong free cash flow in the $165 million range during the past five years. As a result, the company's share count has fallen from 180 million in 2003 to about 120 million today. Ongoing buybacks will take this number even lower, so per-share profits are bound to rise even if overall net income stays flat.
  
  I'm guessing the Verizon deal will be a real plus for the stock, helping net income to grow at a moderate pace and earnings per share (EPS) to grow even more robustly (thanks to that shrinking share count). Analysts expect EPS to rise about 15% in 2012 to roughly $1.80, yielding a price-to-earnings (P/E) multiple below seven. On an enterprise-value basis, this stock is absurdly cheap, trading for less than four times earnings before interest, taxes, depreciation and amortization (EBITDA).

• [By Roberto Pedone]

  One final under-$10 stock that looks ready to trigger a major breakout trade is RadioShack (RSH), which is involved in the retail sale of consumer electronics goods and services through its RadioShack store chain. This stock has been red hot so far in 2013, with shares up a whopping 72%.

  If you take a look at the chart for RadioShack, you'll notice that this stock recently formed a double bottom chart pattern at around $3.03 to $2.97 a share. Following that bottom, shares of RSH have ripped higher back above its 50-day moving average at $3.28 a share and it broke out above some near-term overhead resistance levels at $3.33 to $3.34 a share. That move is now quickly pushing shares of RSH within range of triggering an even bigger breakout trade.

  Traders should now look for long-biased trades in RSH if it manages to break out above some key overhead resistance levels at $3.87 to $4.17 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.38 million shares. If that breakout triggers soon, then RSH will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $6 a share.

  Traders can look to buy RSH off weakness to anticipate that breakout and simply use a stop that sits just below its 50-day at $3.28 a share, or right below $3 a share. One can also buy off strength once RSH clears those breakout levels with volume and then simply use a stop right below $3.40 to $3.30 a share.

  This stock is a favorite target of the bears, since the current short interest as a percentage of the float for RSH is extremely high at 36.1%. If RSH triggers that breakout soon, then this stock has explosive upside potential due to this high short interest. We could easily get a monster short-squeeze, so be ready to play the breakout if it triggers for shares of RSH.

Top 10 Retail Stocks To Watch Right Now: Sonic Automotive Inc.(SAH)

Sonic Automotive, Inc. operates as an automotive retailer in the United States. It engages in the sale of new and used cars, light trucks, and replacement parts; provision of vehicle maintenance, warranty repair, paint, and collision repair services; and arrangement of extended service contracts, financing, insurance, and other aftermarket products. As of December 31, 2011, the company operated 119 dealerships representing 30 brands of cars and light trucks, and 23 collision repair centers in 15 states. The company was founded in 1997 and is based in Charlotte, North Carolina.