These Look Like Winners In This Year’s Retail Shakeout

Earnings and politics. That’s where the thrills are being found for this stock market right now. Signs of a disharmonious GOP have some worried, with Sen. Jeff Flake the latest GOP member to cross POTUS. Some fear that growing political strife could hinder the passage of Trump’s tax plan and put this rally in peril. Or will it? This market is pretty good at taking bad news and relegating it to the Upside Down, betting that lurking dangers won’t bust through. Our call of the day offers a reprieve from calling the ups and downs of this market, as it lays out yet another reason to stick with two of the biggest names in retail when it comes to the future of e-commerce. In a note to clients, Edward Yruma and a team of analysts at KeyBanc Capital laid out what they see happening — “e-commerce to continue to grow low double digits to mid-teens over the next five years.” But that won’t be without its challenges, as rising industrial real estate rents and delivery costs mean “box to home” delivery will get a rethink. “We believe a combination of cost pressures and consumer behavior is leading retailers to more closely integrate stores and e-commerce operations. We think ‘digitally driven’ growth will increasingly involve a consumer pickup component,” said Yruma and the team. Read more at MarketWatch.