MENU

3 retail shares in the bargain bin on Black Friday

Today is Black Friday and an estimated $3.2 billion is going to be spent by Australian consumers looking for bargains over the course of the retail sales event.

But it isn’t just shoppers that can find bargains in the retail space. Investors can, too.

Right now, I believe there are a number of retail shares trading at bargain prices. Three that I think are on sale right now are as follows:

Accent Group Ltd (ASX: AX1)

Accent Group is a retail group with a focus on the footwear market. As well as owning the Platypus, HYPEDC, and The Athlete’s Foot retail brands, it holds the exclusive licences for many popular international footwear brands in Australia. The company had a strong start to the year and reported like for like sales growth of 4.6% for the first seven weeks of FY 2019. Its next update will be due later today, though. So, investors may want to hold fire until after that release.

Adairs Ltd (ASX: ADH)

At just 9x earnings and offering a massive trailing fully franked 8.1% dividend, I think that this home furnishings retailer’s shares are well and truly in the bargain bin right now. Especially given how management has only recently reported strong same store sales and reiterated its FY 2019 EBIT guidance of between $47.5 million and $51.5 million. This will mean year on year growth of between 4.9% and 13.7%. Incidentally, one of its directors has taken advantage of the cheap price to top up his holding this week.

Super Retail Group Ltd (ASX: SUL)

Another great option in the retail sector could be Super Retail Group. This retail group is responsible for popular brands such as Rebel, Super Cheap Auto, and Macpac. All these brands have had solid starts to the year and recently reported positive same stores sales growth year to date. Because of this, I think Super Retail’s shares could be a bargain at just 10x trailing earnings. Like Adairs, they also offer a generous dividend yield. Based on its last close price, Super Retail’s shares provide a trailing fully franked 7% dividend.

If you like dividends then you won't want to miss these buy-rated shares in 2019.

JUST RELEASED: Our Top 3 Dividend Bets for 2019

NEW! The Motley Fool’s team of crack analysts has just released a timely report revealing the names and codes of their top 3 dividend share recommendations for 2019. Be among the first investors to get access—FREE, for a strictly limited time. You’ll discover the names of 3 hefty dividend paying companies with what our analysts consider to be solid growth prospects for the year ahead…

The first two offer fat, fully franked yields and the third is a surprising REIT offering you the chance to become a landlord with none of the hassle! If you’re looking for hot new ideas, look no further. But you do need to hurry. Snap up your free copy now, before supplies run out!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our top 3 dividend share recommendations right away.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended Accent Group. 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 Scott Phillips.

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.