Retail

Analysts pick their favorite retail stocks to buy on Black Friday

People shop at Macy's Herald Square store in New York City on November 25, 2016.
Mohammed Elshamy | Anadolu Agency | Getty Images

Retail analysts are keeping busy this Black Friday, looking to pick the winning stocks for the holiday season.

Simeon Siegel, senior retail analyst at Nomura Securities, told CNBC's "Closing Bell" that shopping trends on Black Friday are shifting.

"In the context of what this Black Friday is, it's seeming to become a little bit more of a utility purchase rather than that gift discretionary purchase of 'I'm going to splurge and go take advantage of a very cheap sweater,'" Siegel said.

The retail winners between Thanksgiving and Christmas, he said, are those that don't have to go with 40 to 50 percent promotional deals. Companies like Ulta and Lululemon seem to be the winners, he added, thanks to the growing cosmetics and athleisure segments.

Liz Dunn, founder and CEO of Talmage Advisors, said Amazon has shaken up the retail world with its Amazon Prime memberships and its pre-emptive holiday deals.

"If you have Prime, you're doing as much of your shopping as you can on Amazon just because it's easy and the shipping," she said Friday on "Closing Bell."

Consumers will be looking for integration between the online and the physical stores, such as Macy's, because of its focus on categories that consumers are focused on, such as personal care products. She also likes Foot Locker, Dick's Sporting Goods and Walmart.

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