Retail Analyst Stock Plays: Federated Stands Out

Holiday spending is in full swing - with online shoppers spending nearly $12B so far this season and U.S. November same-store sales up 1.8%. But all that money isn't helping the stocks. After a run-up--retailers remain under pressure--down 1.25% last week. What should investors buy and sell? On CNBC’s “Morning Call” Erin Burnett asked Goldman Sachs Retail Analyst-Adrianne Shapira.

Shapira is upbeat about the sector. She says fashion seems good, consolidation is positive and the customer is engaged.

According to Shapira--Goldman likes Federated Department Storesheaded into the holiday season. Federated is undergoing a strong turnaround- she likes the strong sales at the Macy's stores. For investors who can stay in the stock for 2-3 years, Federated is a very compelling opportunity.

One of Goldman's other buys is Wal-Mart . The compelling reason is limited downside. She says expectations and numbers are getting washed out.

Shapira also said they could have challenging holiday season so Target could be better short term investment--but in the long term Wal-Mart looks good.

Goldman has a sell on Dillard's- in large part due to Federated's strength.

Analyst disclosure: Shapira owns shares of Dillards, Federated, Target, and Wal-Mart.