Retail stocks have been a mixed bag through the pandemic. While some big-box retailers have fared quite well due to consumer hoarding and ever-increasing prices, others have faltered. Retailers’ success during these trying times is largely dependent on whether they sell necessities and if they have successfully pivoted toward digital ordering and delivery/pick-up as opposed to traditional in-store shopping.

The retail segment as a whole has the potential to pop as more people are vaccinated, and consumerism picks right back up where it left off before the start of the pandemic. Investors looking to diversify their portfolio with new stocks should consider adding a couple of small-cap retail stocks.

The following three small-cap retail stocks have the potential to move higher in the second quarter of 2021 and beyond: Zumiez (ZUMZ), Buckle (BKE), and Abercrombie & Fitch (ANF).

Zumiez (ZUMZ)

ZUMZ is a retailer of footwear, sports-related clothing, accessories, equipment, skateboards, snowboards, bindings, and more. This leading lifestyle retailer has a recognizable brand name, diverse products, and a growing digital presence.

ZUMZ has an overall grade of A in the POWR Ratings. The stock has A grades in the Momentum and Quality components of the POWR Ratings and a B grade in the Value component. Investors who are curious as to how ZUMZ grades out in the Sentiment, Stability, and Growth components of the POWR Ratings can find out by clicking here.

Of the 66 publicly traded companies in the Fashion & Luxury industry, ZUMZ is ranked 2nd. The Fashion & Luxury segment as a whole has a B grade. If you would like to find other top stocks in the industry, you can click here.

ZUMZ has a reasonable forward P/E ratio of 14.12, meaning it is not overvalued at its current price of $45.60. The stock’s 52-week high is $49.23, while its 52-week low is $16.77.

Analysts are slightly bullish on ZUMZ, establishing an average target price of $49.20. If ZUMZ hits this price target, it will have increased by more than 5% in value. The analysts’ high target price for the stock is $57, while the low is $35. Of the six analysts who have issued recommendations for ZUMZ, two consider it a Strong Buy, and one considers it a Buy.

Buckle (BKE)

BKE is a retailer of casual apparel, sneakers, accessories, and other fashionable items. BKE customers are quite loyal to the company as it provides no-cost alterations, a convenient layaway program, and rewards for frequent shoppers.

BKE has an overall grade of B in the POWR Ratings. The stock has A grades in the Momentum and Quality components and a B in the Growth component. Click here to learn more about how BKE fares in the remainder of the POWR Ratings components, including Sentiment, Value, and Stability.

Of the 66 stocks in the Fashion & Luxury space, BKE is ranked 8th. BKE has a forward P/E ratio of 15.41. This is a moderate forward P/E ratio even though the stock is merely one dollar away from its 52-week high of $44.08.

Abercrombie & Fitch (ANF)

ANF reached its height in popularity back in the late 90s. However, ANF is still fashionable amongst many young adults in 2021. This retailer sells casual apparel, accessories, personal care items, and more. Though few know it, ANF sells its items under its own A&F label and Hollister, Abercrombie, and RUEHL.

ANF has an overall grade of B in the POWR Ratings. The stock has A grades in the Momentum and Quality components and a B in the Value component. If you are curious about how ANF grades out in the Sentiment, Stability, and Growth components, you can find out by clicking here.

Out of the 66 publicly traded companies in the Fashion & Luxury space, ANF is ranked 14th. ANF’s forward P/E ratio of 28.39 is relatively high. However, it must be noted that the stock is trading about 50 cents below its 52-week high, so the elevated forward P/E ratio is somewhat more tolerable.

ZUMZ shares were trading at $46.10 per share on Thursday morning, up $0.91 (+2.01%). Year-to-date, ZUMZ has gained 25.34%, versus a 11.14% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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