Where To Shop For Retail Stocks


Wal-Mart's strong resultsput retail stocks in the spotlight, and JPMorgan's Charles Grom and David Abella of Rochdale Investment Management have some retail recommendations for investors.

"Although retail stocks are a leading indicator and should uptick before the economy starts to uptick, I think in general there's probably some more downturn in retail," Abella warned. "But Wal-Mart is a good name; it's a very defensive name, both in the market as a whole and for people who are invested in retailers."

Grom has a couple of other favorites.

"We like Costco," he told CNBC. "We think there's better upside in same-store sales and earnings growth this year."

Grom also likes Target.

"Target's a little bit of an out-of-consensus name right now, and we like it just for that reason," he said. "There's been about eight or nine sell-side downgrades recently, and the stock's pulled in significantly from its 52-week high."

Target was recently trading at about $52.38. In the past 52 weeks, the stock has changed hands as high as $70.75 and as low as $47.01.