2023-04-17 16:19:22 ET
Wells Fargo thinks retail sales will improve in April following a tough tally for March that was widely anticipated.
The firm noted that even though softer spending and moderating inflation set the stage for fewer rate hikes, consumer preferences continue to favor categories with defensive growth characteristics like auto parts, some general merchandise names and restaurants. Those factors in addition to the forecast for warm weather forecasts in the U.S. for the balance of April are believed to set the stage for Lowe's ( NYSE: LOW ), Tractor Supply ( TSCO ), and AutoZone ( AZ ) to outperform expectations. All three retail stocks are rated Overweight at Wells Fargo.
Tractor Supply ( TSCO ) will report earnings on April 27, while AutoZone ( AZO ) and Lowe's ( LOW ) will head into the earnings batter's box until late in May.
Compare growth, profitability, and valuation metrics on LOW, TSCO, and AZO.
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Lowe's, Tractor Supply and AutoZone top Wells Fargo's spring stocks list