MENU

Why I think these retail shares are in the buy zone

In the not so distant future retail behemoth Amazon is widely expected to launch in Australia and shake up the retail industry.

While some retailers such as JB Hi-Fi Limited (ASX: JBH) may be negatively impacted by Amazon’s arrival, I believe there are others that will continue their growth unabated.

Two shares which I think are worth looking at in the retail industry now are listed below:

Noni B Limited (ASX: NBL)

Through W Lane, Table 8, BeMe, and its eponymous Noni B brand, this retail company operates in the middle-aged women’s fashion clothing market. Not only is its target demographic less likely to shop online with Amazon compared to younger demographics, but is a fast-growing demographic thanks to Australia’s ageing population.

The company has had a strong start to FY 2018 and looks likely to build on FY 2017’s impressive result. At a little over 16x full-year earnings, I think Noni B is worth considering as an investment today.

Premier Investments Limited (ASX: PMV)

The main attraction to this retail conglomerate is its fast-growing Peter Alexander and Smiggle brands. These two niche brands now account for approximately 40% of its total sales, but this could yet grow even further in the coming years.

Management expects Smiggle’s sales alone to exceed $400 million by FY 2020 thanks to its global expansion, representing growth of 67% on FY 2017. Similarly, Peter Alexander’s sales are forecast to grow to over $250 million during the same period. This will be an increase of almost 31% on FY 2017’s sales.

All in all, I believe this puts Premier Investments in a position to deliver above-average earnings growth for the foreseeable future. This could make it a great buy and hold investment option.

As well as Premier Investments and Noni B, I think these top shares are in the buy zone now.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.