Speciality retail stocks could be among the hottest picks of 2022 after delivering mixed performances last year. Here are the two that could reward investors significantly.
Bath & Body Works
Bath & Body Works Inc. (NYSE:BBWI) shares rallied more than 115% last year. However, the stock still trades at exciting valuation multiples with a P/E ratio of 14.82.
Furthermore, analysts expect BBWI’s earnings per share to grow by 326% this year before rising at an average annual rate of 15.40% over the next five years.
Technically, the stock seems to be trading within a descending channel formation in the intraday chart. However, it also seems to have found support from the 100-day moving average.
Investors could target profits at about $73.49 or higher at $77.28, while $67.12 and $63.48 are support levels.
Best Buy
Best Buy Co. Inc. (NYSE:BBY) shares spiked by nearly 30% in the 7-weeks starting on the 1st of October, before falling by 27%.
The consumer electronics retailer’s stock now trades at an attractive P/E ratio of 12.38, making it a compelling option for value investors.
Technically, BBY shares seem to be trading within an ascending channel formation in the intraday chart.
Investors could target extended gains at about $109.04 and $113.87, while $100.81 and $96.15 are support levels.
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