Retail sales grew at the fastest pace since March in the United States. While it is beneficial for economic growth, the excess spending is due to inflation. However, with the holiday season just around the corner, retailers are hopeful that consumers will soon flood stores, both brick-and-mortar and online. In the light of this, investors can pick funds like Fidelity Select Retailing Portfolio (FSRPX - Free Report) , Fidelity Select Leisure Portfolio (FDLSX - Free Report) , Franklin DynaTech Fund Class A (FKDNX - Free Report) and Fidelity Select Consumer Discretionary Portfolio (FSCPX - Free Report) .
On Nov 16, the U.S. Census Bureau reported that retail and food services sales rose 1.7% to $638.2 billion in October, surpassing the consensus estimate of 1.3%. October’s figure surpassed September’s slightly upwardly revised figure of 0.8% and is 16.3% higher than the same period last year.
Last month’s report shows that Americans have an appetite for goods even when they are having to pay more. Online retail sales rose 4%, while department stores and electronics and appliance stores made 2.2% and 3.8% higher sales in the month. Receipts across food services and drinking places were up 3.9% in October.
Consumer prices rose almost 1% in October, and with inflation rising, Americans are paying more for almost every item. In fact, supply-side constraints make products such as new cars harder to find and raise prices to record highs, although sales figures have climbed 1.8%. Gasoline prices have also edged up 3.9% and sales across gasoline stations were up 1.6% last month.
On the brighter side, with the holiday season around the corner, sales across retailers are expected to hold “considerable momentum,” according to National Retail Federation (NRF) President and CEO Matthew Shay. Per NRF’s forecast, holiday sales (during November and December) this year are expected to grow between 8.5% and 10.5%, reaching $843.4-$859 billion. The faded effects of the pandemic will keep consumers hooked to online and other non-stores helping sales to grow between 11% and 15%. Additionally, per Deloitte’s survey, an average American family, especially high-income households, is expected to spend $1,463 in the holiday season, highlighting 5% growth from the same period last year.
4 Mutual Funds to Buy
Retail sales pick up in October, which calls for investing in the four mutual funds mentioned below. The selection includes retailers, travel & leisure service and products providers, and some technology funds engaged in online retailing and selling toys and video games.
These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and portfolio diversification without several commission charges associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Retailing Portfolio fund aims for capital appreciation. This non-diversified fund invests the majority of its assets in securities of companies that merchandise finished goods and services to individual customers. FSRPX invests in both U.S. and non-U.S. stocks.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 25.9% and 23.6% in the past three and five years, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing Portfolio has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%, below the category average of 0.79%.
Franklin DynaTech Fund Class A aims for capital appreciation. The fund invests in common stocks of companies that the fund manager believes are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions in the dynamically changing global economy.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FKDNX has returned 34.6% and 29.5% in the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Franklin DynaTech Fund Class A has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.85%, below the category average of 0.99%. FKDNX has a significant investment in online retailers and gaming companies that stand to benefit during the holiday season.
Fidelity Select Leisure Portfolio fund aims for capital appreciation. The fund invests at least 80% of its assets in companies that design, produce or distribute goods or services in the leisure industries. This non-diversified fund invests in both domestic and foreign stocks.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FDLSX has three and five-year returns of 20.1% and 17.9%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Leisure Portfolio has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.77%, below the category average of 0.79%.
Fidelity Select Consumer Discretionary Portfolio fund aims for capital appreciation. This non-diversified fund invests the majority of its assets in common stocks of companies that manufacture and distribute consumer discretionary goods and services. FSCPX invests in both domestic and foreign stocks.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FSCPX has three and five-year returns of 23.8% and 20.5%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Consumer Discretionary Portfolio has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.76%, below the category average of 0.79%.
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Retail sales grew at the fastest pace since March in the United States. While it is beneficial for economic growth, the excess spending is due to inflation. However, with the holiday season just around the corner, retailers are hopeful that consumers will soon flood stores, both brick-and-mortar and online. In the light of this, investors can pick funds like Fidelity Select Retailing Portfolio (FSRPX - Free Report) , Fidelity Select Leisure Portfolio (FDLSX - Free Report) , Franklin DynaTech Fund Class A (FKDNX - Free Report) and Fidelity Select Consumer Discretionary Portfolio (FSCPX - Free Report) .
On Nov 16, the U.S. Census Bureau reported that retail and food services sales rose 1.7% to $638.2 billion in October, surpassing the consensus estimate of 1.3%. October’s figure surpassed September’s slightly upwardly revised figure of 0.8% and is 16.3% higher than the same period last year.
Last month’s report shows that Americans have an appetite for goods even when they are having to pay more. Online retail sales rose 4%, while department stores and electronics and appliance stores made 2.2% and 3.8% higher sales in the month. Receipts across food services and drinking places were up 3.9% in October.
Consumer prices rose almost 1% in October, and with inflation rising, Americans are paying more for almost every item. In fact, supply-side constraints make products such as new cars harder to find and raise prices to record highs, although sales figures have climbed 1.8%. Gasoline prices have also edged up 3.9% and sales across gasoline stations were up 1.6% last month.
On the brighter side, with the holiday season around the corner, sales across retailers are expected to hold “considerable momentum,” according to National Retail Federation (NRF) President and CEO Matthew Shay. Per NRF’s forecast, holiday sales (during November and December) this year are expected to grow between 8.5% and 10.5%, reaching $843.4-$859 billion. The faded effects of the pandemic will keep consumers hooked to online and other non-stores helping sales to grow between 11% and 15%. Additionally, per Deloitte’s survey, an average American family, especially high-income households, is expected to spend $1,463 in the holiday season, highlighting 5% growth from the same period last year.
4 Mutual Funds to Buy
Retail sales pick up in October, which calls for investing in the four mutual funds mentioned below. The selection includes retailers, travel & leisure service and products providers, and some technology funds engaged in online retailing and selling toys and video games.
These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging one and three-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and portfolio diversification without several commission charges associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Retailing Portfolio fund aims for capital appreciation. This non-diversified fund invests the majority of its assets in securities of companies that merchandise finished goods and services to individual customers. FSRPX invests in both U.S. and non-U.S. stocks.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 25.9% and 23.6% in the past three and five years, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Retailing Portfolio has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%, below the category average of 0.79%.
Franklin DynaTech Fund Class A aims for capital appreciation. The fund invests in common stocks of companies that the fund manager believes are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions in the dynamically changing global economy.
This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FKDNX has returned 34.6% and 29.5% in the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Franklin DynaTech Fund Class A has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.85%, below the category average of 0.99%. FKDNX has a significant investment in online retailers and gaming companies that stand to benefit during the holiday season.
Fidelity Select Leisure Portfolio fund aims for capital appreciation. The fund invests at least 80% of its assets in companies that design, produce or distribute goods or services in the leisure industries. This non-diversified fund invests in both domestic and foreign stocks.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FDLSX has three and five-year returns of 20.1% and 17.9%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Leisure Portfolio has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.77%, below the category average of 0.79%.
Fidelity Select Consumer Discretionary Portfolio fund aims for capital appreciation. This non-diversified fund invests the majority of its assets in common stocks of companies that manufacture and distribute consumer discretionary goods and services. FSCPX invests in both domestic and foreign stocks.
This Zacks Sector-Other product has a history of positive total returns for more than 10 years. Specifically, FSCPX has three and five-year returns of 23.8% and 20.5%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Select Consumer Discretionary Portfolio has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.76%, below the category average of 0.79%.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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