The Zacks Analyst Blog Highlights: America's Car-Mart, Lithia Motors, At Home Group, Dine Brands Global and Urban Outfitters

For Immediate Release

Chicago, IL – April 19, 2018 – 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 America's Car-Mart, Inc. CRMT, Lithia Motors, Inc. LAD, At Home Group Inc. HOME, Dine Brands Global, Inc. DIN and Urban Outfitters, Inc. URBN.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

5 Top Stocks for a New American Spending Spree

Americans have started to splurge on discretionary items after a ho-hum winter season. This is well reflected in the pickup in retailers’ March sales, putting an end to three straight months of a decline. Consumer outlays rose on the back of a strong jobs market, rise in income, tax cuts and refunds. Consumer optimism, by the way, continues to remain at a high level.

This calls for investing in consumer discretionary companies that are poised to grow on the signs of renewed consumer spending strength.

Sales at Retailers Pop

According to the Commerce Department, U.S. retail sales rose a solid 0.6% in March for the first time in four months. The so-called core retail sales that exclude food services, auto dealers, building-materials stores and gasoline stations, also climbed 0.4%.

Sales rose at eight of 13 major retail categories. Auto dealers notched their best month since last November, up 2%. A recent report has shown pickup in purchases of cars and light trucks to a 17.4 million annualized rate in March, the fastest this year (read more: U.S. Auto Sales Rev Up in March: 5 Solid Picks).

Sales at health and personal care stores went up 1.4%, the highest in two years. Internet retailers, food services and drinking places, and stores that sell home furnishing goods were some of the other big gainers. A rise in sales at U.S. clothing retailers also contributed significantly.

Eastern holiday in the last weekend of March drove more traffic in stores. Thus, consumers ended a shopping hiatus and spent more money after lying low for a few months due to harsh winter weather conditions.

What Does the Retail Sales Uptick Indicate?

Such a pickup underlined the improved financial conditions of American households and also the resilience of the U.S. economic expansion that will turn nine years old at the end of June.

This increase in spending may not necessarily save the U.S. economy from a downshift in the first quarter, but, definitely indicates that the recent drop in consumer outlays is about to end.

Chief economist of Amherst Pierpont Securities, Stephen Stanley also added that “the somewhat improved performance in March was too late to help the first quarter, but it does set the stage for a marked pickup in real consumer spending in the second quarter.”

What Boosted Consumer Spending?

Steady job gains and rise in income levels fueled consumer spending. The United States added an average of 202,000 jobs a month in the first quarter, higher than the average gains in the same period of 2017 and 2016. The unemployment rate remained at a 17-year low of 4.1% in March, while workers’ hourly wages rose 8 cents, or 0.3%, to $26.82 in the month.

The recent tax cut has also put a lot of money in consumer’s pocket. After tax wages increased 7.5% year over year in March, up from 5.2% in February, per data accumulated from Bank of America’s cards, debit cards and customer accounts.

The tax bill trimmed the ultra-rich individual tax bracket from 39.6% to 37%, while the middle class has also been spared from paying hefty taxes. Also, income-tax refunds are giving consumers extra cash to spend and their sentiments continue to remain relatively high.

5 Solid Picks

Courtesy of a rise in household spending, consumer discretionary companies are poised to benefit the most as outlays plays a major role in determining their revenues. We have, thus, selected five consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

America's Car-Mart, Inc.operates as an automotive retailer in the United States. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 1.9% in the last 60 days. The company’s projected growth rate for the current and next quarter is 37.5% and 32.2%, respectively. The stock’s expected earnings growth rate for the current year is 27.8%, better than the industry’s estimated growth of 23.5%.

Lithia Motors, Inc.operates automotive franchises, and retails new and used vehicles in the United States. The company has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 6.9% in the last 60 days.  The company’s projected growth rate for the current and next quarter is 30.9% and 25%, respectively. The stock’s estimated earnings growth rate for the current year is 26.3%, higher than the industry’s projected growth of 23.5%.

At Home Group Inc.operates home decor superstores in the United States. The company has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 2.5% in the last 60 days. The company’s projected growth rate for the current and next quarter is 42.1% and 50%, respectively. The stock’s expected earnings growth rate for the current year is 29.8%, compared with the industry’s estimated growth of 9.3%.You can see the complete list of today’s Zacks #1 Rank stocks here.

Dine Brands Global, Inc.owns, franchises, operates, and rents full-service restaurants in the United States and internationally. The company has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings moved up 21.5% in the last 60 days. The stock’s expected earnings growth rate for the current year is 22.7%, better than the industry’s estimated growth of 10.7%.

Urban Outfitters, Inc. retails women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products. The company has a Zacks Rank #1.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lithia Motors, Inc. (LAD) : Free Stock Analysis Report
 
America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report
 
At Home Group Inc. (HOME) : Free Stock Analysis Report
 
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
 
DineEquity, Inc (DIN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.