This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Retail Predictions for 2014

Stocks in this article: RSH JNY LL LOW M URBN

Nine West Reunites With Its Founder

1 Famed footwear fashion guru Vince Camutobuys back Nine West from Jones Group's (JNY), the shoe chain he started 35 years ago.

"Reuniting Vince with his earlier brand [will] capture some attractive full-price leases and improve their return-on-investment while at the same time, move Nine West retail to a mostly outlet concept," says Marie Driscoll of Driscoll Advisors.

RadioShack Cedes to Competitors

2. This year's holiday season will mark the last one for RadioShack (RSH) in its current form, forecasts Brian Sozzi, CEO and Chief Equities Strategist for Belus Capital Advisors.

"The main reason for RadioShack's extinction: it sells nothing of relevance for new tech upgrade cycles or the actual devices in the new tech upgrade cycle," Sozzi says. Ouch.

So, what can go in the empty storefronts? "Google (GOOG) pop up shops, or even Wal-Mart (WMT) pick up locations," Sozzi says.

In all fairness, Wall Street has been predicting RadioShack's demise for many years. Perhaps the prediction could turn out the other way around, and Radio Shack re-energizes 2014's comeback kid. Well, don't count on it.

Home Hardline Retailers Continue to Shine

3. In 2014, home price growth may slow and housing affordability may become slightly less attractive but the underlying demand continues to move as "more normal levels and pent-up demand provides an additional lift, particularly toward big-ticket categories like flooring," according to Wedbush Securities' 2014 Consumer/Retail Sector Outlook published on Dec. 17.

"We definitely see retailers exposed to the housing market in the 'haves' category. Housing continues to recover, providing significant benefits to home improvement retailers -- particularly those with exposure to big-ticket discretionary project spending," Wedbush vice president Seth Basham writes in an email. "We have our eye on companies like Lumber Liquidators (LL) as well as Lowe's (LOW) who stand to benefit from the strengthening housing cycle."

Lumber Liquidators is one of Wedbush's top picks for 2014. "We believe CEO Rob Lynch has transformed [Lumber Liquidators] into a best-in-class vertically-integrated growth retailer with enormous tailwinds supporting a medium-term 03% EPS growth rate on top of 63% growth in 2013," the Wedbush note says.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs