Tiffany & Co. is a top retail stock, despite a shopper-scaring police presence outside its flagship store near Trump Tower, analyst Bob Drbul told CNBC on Monday.
Analysts have cautioned that the heavy security protecting President-elect Donald Trump could hurt Tiffany's fourth-quarter earnings, though the luxury company has maintained its full-year sales and earnings forecasts.
"We've been watching very closely a lot of the flagship traffic, speaking of the Trump situation, and we haven't seen it to be a huge negative impact," Drbul, a managing director and retail analyst at Guggenheim, told "Squawk Box."
"It is a concern, but maybe all the tourism is helping traffic flow into that store," he said.
The luxury brand is also gearing up for a pickup in momentum in the new year, which Drbul said could mean sustained gains.
"When we think about 2017, we expect a new platform to be launched next year, they have some very easy comparisons that they're going up against, [and] there's a new CFO, Mark Erceg, at the helm there," making Tiffany a promising stock to watch or buy, he said.
Drbul said that another attractive stock is Amazon.com, one of his firm's favorite retail names despite its shipping-related hiccups last year.
"A year ago their costs were inflated based on just the throughput issue that Amazon had. They've added 26 additional fulfillment centers this holiday season," reversing that concern and helping their fourth-quarter earnings outlook, Drbul said.
As for the holiday season as a whole, Drbul said there is still room for sales to grow despite snow on the East Coast on Saturday slowing one of the holiday season's biggest weekends for brick-and-mortar retailers.
"The consumer seems to be in fairly healthy condition, the balance sheets are improved, unemployment remains low, there's outlook about the new jobs and discussion of that, so generally we're pretty optimistic," Drbul said.
"But there are a lot of unknowns and there are a lot of variables that we are considering as we think about 2017."