Forget Clicks and bring back Bricks...
Article from WSJ.
Despite Battered Markets, Some Stocks Are Still Bucking the Downward Trend
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Retail
For investors looking outside of technology, retailing still offers a lot of value, Ms. Wyatt says.
She says that many retailing stocks, after having "been in the basement," are now performing well. Among big gainers so far this year are Lowe's, Kmart and Dillard's. The industry has been helped by lower interest rates and expectations of tax cuts, both of which encourage consumer spending.
Lowe's is one of Ms. Wyatt's favorites in the group. Just last week, the home-improvement retailer reported lower quarterly earnings but surprised analysts by predicting a faster-than-expected turnaround. "It has value, and they are expanding fast," Ms. Wyatt says.
She is more cautious about Kmart, but says the stock will be "interesting to watch," in particular because of the discount chain's attempts to make inroads into the grocery business.
Department store Dillard's is "a classic value stock," she says. However, while the shares are cheap, she would like to see more evidence of earnings improvement.
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