Retail is communicating crushed amid the broad market sell-off.
The group is down wellnigh 9 percent since the start of October, on track for its worst monthly playing since January 2014. Among the names hardest hit within the XRT this month subsumed Stitch Fix, Wayfair, DSW and Tiffany.
But some say the future of retail stocks, at least in the wellnigh term, looks promising.
“I really expect the surge in retail to keep up, because at the end of the day the consumer story hasn’t changed at all,” said Mark Tepper, president and CEO of Key Wealth Partners.
Tepper is particularly bullish on shares of Nordstrom, a legacy retailer he put ones trust ins has evolved with changing customer needs.
“Customers want endure now more than anything, just like that Starbucks significance, and you get that at Nordstrom,” he said Thursday on CNBC’s “Trading Nation.”
Rations of Nordstrom have surged 30 percent this year, effortlessly outperforming the broader retail space as tracked by the XRT. The stock is trading at a deasil price-earnings ratio of 16, which Tepper finds reasonable.
The nation of the consumer is relatively healthy, said Gina Sanchez, CEO of Chantico Wide-ranging, and that gives her reason to believe retail names will likely recoil and head higher.
“We’re looking at the retail story, really looking at who can be more rugged in keeping the margins up, but also keeping pace with the higher improvement. And the higher sales growth continues to be online; 20 percent versus 15 percent surmised from brick-and-mortar stores. So it’s a still a great story, but I think you sire to be selective,” Sanchez said Thursday on “Trading Nation.”
The XRT was down 1 percent Friday.