Home improvement retailers “will likely experience mid-single digit revenue growth in the next fiscal year according to S&P Capital IQ Equity Analyst Efraim Levy, driven by new store additions and the benefits of a recovery in the housing market and improving consumer confidence,” said the research firm in a new note.
Analysts believe that the better-than-expected sales are a sign that the lower gasoline prices, improving job market and stronger economy are pushing consumers to spend more, which could continue throughout this year. Additionally, confidence looks even better among lower-income groups, which suggests that low gas prices and low mortgage rates are also allowing consumers to buy more goods. [Retail ETFs Rebound]
S&P Capital IQ has a marketweight rating on PMR. The research firmthinks industry ETFs can incur elevated risk that investors may not want. As such, investors may want to look at more diversified consumer discretionary ETFs to gain exposure to specialty retail trends.”
PowerShares Dynamic Retail Portfolio
