Top-ranked analyst Paul Lejuez of Citigroup on Monday upgraded a group of specialty retailers that could benefit from a boost in discretionary income thanks to lower taxes proposed by President-elect Donald Trump.
"We cannot ignore the likelihood that tax reform (both personal and corporate) provides a bump that many of our retailers need. Whether on the right side of the Trump win or not, with tax reform consumers are likely to find more money in their pockets (creating a rising tide)," wrote Lejuez in a note to clients.
Lejuez's picks have a 15 percent one-year average return with a 66 percent success rate, according to analyst ranking service TipRanks, placing him in the top 5 percent of all Wall Street analysts covering any industry.
In the next 12 months, he thinks shares of four specialty retailers could each see their stocks rise by at least 17 percent.