Retail is bouncing back as economies reopen following the coronavirus pandemic, say analysts at investment bank Cowen, who picked stocks in the sector that are most likely to maintain this momentum.
In a June 8 note entitled "Retail roars back!," Cowen summarized some key insights for the sector after speaking with management from a number of retailers.
A major trend the analysts cited was confidence that firms would be able to maintain their reopening momentum into the second half of the year.
"The great wardrobe refresh" would help with this, they said, as more people returned to the office and had the opportunity to attend events and travel. They expected this to extend "into the back-to-school season as kids returning to school will be a catalyst for many parents to return to the office."
The growing influence of younger shoppers was also important, the Cowen analysts said, with retailers leaning into the values most important to this group of consumers, such as body positivity, having a purpose beyond profit and sustainability.
With these insights in mind, Cowen analysts ranked their "top conviction" retail stocks which they expect to outperform the market.