As represented by the SPDR S&P Retail ETF, this year's bear market has not been kind to the broad retail sector. But from auto parts retailers like AutoZone and O'Reilly Automotive to names like Wingstop, BJ's Wholesale Club and Ulta Beauty, pockets of power and promise have emerged. And each of these companies, plus 14 other retail stocks, have landed a spot on the latest list of new buys by the best mutual funds.
Joining ORLY, ULTA stock and the others, Dollar Tree, Driven Brands, Murphy USA, Casey's General Stores, Tractor Supply and Ethan Allen Interiors are also in demand among top money managers.
The best mutual funds also picked up shares in industrial products distributors Applied Industrial Technologies and W.W. Grainger.
The retail sector ranks No. 9 among the 33 sectors IBD tracks. To narrow investors' search for top stocks, IBD breaks down those 33 sectors into 197 industry groups.
Driven by strength in O'Reilly, AutoZone and Genuine Parts, the auto parts retailers group holds the highest ranking among retailers. It comes in at No. 7 among the 197 industries tracked.
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The list below is ranked by Composite Rating. Ranging from 1 (worst) to 99 (best), this proprietary IBD rating gives each stock an overall score for both fundamentals and technicals. You'll find the ratings for these retail stocks and all others in Stock Checkup.
MUSA and AIT stock, for example, both earn a 98 Composite Rating. That means they are outpacing 98% of all stocks in terms of the most important stock-picking traits.
Stocks on the list of new buys by the best mutual funds that have recently launched breakouts include auto parts retailers ORLY, AZO and GPC. Ethan Allen has also designed big move in heavy volume and is now extended.
Several retail stocks continue to test new buy zones, including WING, CASY, MUSA, AIT, GWW and Weis Markets.
Nine names on the list below are building buy points for a possible new run. Retail stocks fitting that bill include BJ, DLTR, TSCO and ULTA stock.
As always, keep an eye on the how the market indexes are acting before taking a sake in any stock.
| Company | Symbol | Industry Group | Amount invested (in millions) | Composite Rating |
|---|---|---|---|---|
| Murphy USA | Retail-Super/Mini Markets | $2.34 | 98 | |
| Applied Industrial Technologies | Retail Wholesale Building Products | 14.35 | 98 | |
| O'Reilly Automotive | Retail/Wholesale-Auto Parts | 1.17 | 97 | |
| Genuine Parts | Retail/Wholesale-Auto Parts | 48.43 | 96 | |
| BJ's Wholesale Club | Retail-Discount & Variety | 34.47 | 96 | |
| Titan Machinery | Retail-Wholesale Building Products | 1.74 | 96 | |
| Wingstop | Retail-Restaurants | 7.42 | 95 | |
| W.W. Grainger | Retail-Wholesale Building Products | 151.44 | 95 | |
| Casey's General Stores | Retail-Super/Mini Markets | 16.25 | 94 | |
| AutoZone | Retail-Wholesale Auto Parts | 169.09 | 93 | |
| Ethan Allen Interiors | Retail-Home Furnishings | 1.5 | 93 | |
| Driven Brands | Retail-Wholesale Auto Parts | 67.77 | 91 | |
| Winmark | Retail-Leisure Products | 1 | 91 | |
| Ulta Beauty | Retail-Specialty | 2.47 | 91 | |
| Ingles Markets | Retail-Super/Mini Markets | 3.67 | 91 | |
| Rush Enterprises | Retail-Wholesale Auto Parts | 2.8 | 89 | |
| Dollar Tree | Retail-Discount & Variety | 1.7 | 88 | |
| Tractor Supply | Retail-Wholesale Building Products | 9.42 | 87 | |
| Weis Markets | Retail-Super/Mini Markets | 9.46 | 85 |
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
