Which retail stocks should investors keep an eye out for in ’07? Robert Buchanan, retail analyst for A.G. Edwards, and Dana Telsey, retail analyst and chief research officer for Telsey Advisory Group, were on “Morning Call” to give their picks.
Buchanan has a buy on J.C. Penney . He says a slowing has already occurred and the company is poised for growth in the new year. Buchanan especially likes the management at Penney.
He is also positive on Kohl's and Nordstrom , but still unwilling to buy Wal-Mart until the company works out its internal issues.
Telsey echoes Buchanan’s pick of Nordstrom – she also likes Coach , Federated Department Stores , and Staples (she expects the office-supplies retailer to grow internationally). Telsey also picks Urban Outfitters and TJX Companies – pointing to a transition in management at TJX as a reason to buy the stock.