10 Best Retail Stocks To Own For 2014

Pepsi stock hit an all-time high last month, but there's a new cola war brewing.�

SodaStream's (NASDAQ: SODA  ) enlisting bigger appliances in its battle against�Coca-Cola� (NYSE: KO  ) and�PepsiCo� (NYSE: PEP  ) , and the soda giants better be paying attention.

SodaStream's partnership with Samsung has delivered the first refrigerator that uses SodaStream technology (and CO2 refills) to deliver carbonated water from the dispenser. This isn't science fiction. The refrigerator is shipping now, and Best Buy (NYSE: BBY  ) is already stocking the state-of-the-art kitchen appliance.�

Now, it isn't cheap. Samsung's suggested retail price is $3,900. Best Buy is selling it for $3.700. However, as the technology gets cheaper, and other makers hop on the home-based carbonation bandwagon, it could mean a dent in sales for the soda giants. This could naturally hurt Pepsi stock as it leans more on its salty snacks business if the fizzing fridges take off.�

Best Communications Equipment Companies For 2015: Matahari Department Store Tbk PT (LPPF)

PT Matahari Department Store Tbk operates as a multi-format retailer. The Company, based in Indonesia, operates as the Department Store division of Matahari Putra Prima. The Matahari Group is Indonesia's multi-format retailer with core retail businesses in fashion and household groceries businesses targeted for middle - upper middle consumers throughout the country. Advisors' Opinion:

• [By Emma O��rien]

  PT Matahari Department Store (LPPF), Indonesia�� largest retailer, climbed 7.7 percent to 14,000 rupiah after the stock was added to the MSCI Emerging Markets Index.

10 Best Retail Stocks To Own For 2014: Advance Auto Parts Inc(AAP)

Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of AutoZone have fallen 1.7% to $531.87 at 11:52 a.m., while Advance Auto Part (AAP) has dropped 1.6% to $121.27 and O’Reilly Automotive (ORLY) has declined 0.9% to $147.25. Pep Boys (PBY), however, has bucked the selling–its shares have gained 1.9% to $10.57.

• [By Lauren Pollock]

  Among the companies with shares expected to actively trade in Wednesday’s session are Mattel Inc.(MAT), Stanley Black & Decker Inc.(SWK) and Advance Auto Parts Inc.(AAP)

• [By Ben Eisen]

  Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) �, Nordstrom Inc. (JWN) �, PetsMart, Inc. (PETM) �, Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) �, Target Corp. (TGT) �, and Urban Outfitters, Inc. (URBN) .

• [By Matt Thalman]

  Competitor Advanced Auto Parts (NYSE: AAP  ) also announced earnings this morning, which resulted in shares of the company increasing by 12.74% today. Revenue at Advanced rose 6% year over year to hit $1.41 billion, but that was below the $1.43 billion analysts were expecting. Despite that miss, earnings per share came in at $0.94, which was $0.13 higher than Wall Street had predicted. The company maintained a strong gross margin at 49.8%, but that fell from 49.9% during the same quarter last year, which was explained as a side effect from a higher mix of commercial sales, an area that has lower margins. Lastly, management forecasted that 2014 fiscal year earnings per share will fall within a range from $7.20-$7.40, while analysts had that number pinned at just $7.03 per share.�

10 Best Retail Stocks To Own For 2014: The Pantry Inc.(PTRY)

The Pantry, Inc. operates a chain of convenience stores in the southeastern United States. The company?s stores offer a selection of merchandise, fuel, and ancillary products and services. Its merchandise products include cigarettes, grocery and other tobacco products, packaged beverages, beer, and wine. The company operates stores under various selected banners, which primarily include Kangaroo Express. As of September 29, 2011, it operated 1,649 convenience stores located in Florida, North Carolina, South Carolina, Georgia, Alabama, Tennessee, Mississippi, Virginia, Kansas, Kentucky, Louisiana, Indiana, and Missouri; and 233 quick service restaurants. The company was founded in 1967 and is headquartered in Cary, North Carolina.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Pantry (Nasdaq: PTRY  ) , whose recent revenue and earnings are plotted below.

• [By Geoff Gannon]

  For one thing, I can�� tell a great oil company from a not so great oil company. I can�� evaluate the company�� culture, management, etc. There was no way I was ever going to answer questions like that. But I can easily split Murphy�� U.S. retail business from its other operations. And I can compare that part of the company to other public companies like Pantry (PTRY) and Susser (SUSS). I can also ��this is much harder ��look at Murphy�� reserves and compare them to other oil companies��reserves. The SEC now requires a standardized way of reporting discounted net cash flows for all oil companies. So, there�� certainly a specific number available for every company. Whether it�� a very good number or not depends on the assumptions the method uses.

• [By Jeremy Bowman]

  What: Shares of The Pantry (NASDAQ: PTRY  ) were down as much as 15% today after the convenience-store chain posted a second-quarter loss and missed Wall Street estimates.

• [By Sean Williams]

  Much of the same can be said about The Pantry (NASDAQ: PTRY  ) , a predominantly Southeastern U.S. convenience store chain that operates under the Kangaroo Express name. Food inflation has been minimal, the weather hasn't been as cooperative, and consumer traffic fell 4.6% in its most recent quarter. But where other investors see weakness, I see an opportunity.

10 Best Retail Stocks To Own For 2014: Officemax Incorporated(OMX)

OfficeMax Incorporated, together with its subsidiaries, distributes business-to-business and retail office products. Its Contract segment markets and sells office supplies and paper, technology products and solutions, office furniture, and print and document services directly to large corporate and government offices, as well as to small and medium-sized offices through field salespeople, outbound telesales, catalogs, Internet, and office products stores. As of December 31, 2011, this segment operated 38 distribution centers in the United States, Puerto Rico, Canada, Australia, and New Zealand; 4 customer service and outbound telesales centers in the United States; and 47 office products stores in Canada, Hawaii, Australia, and New Zealand. The company?s Retail segment markets and sells office supplies and paper, print and document services, technology products and solutions, and office furniture to small and medium-sized businesses and consumers through a network of reta il stores. As of December 31, 2011, this segment operated 978 stores in the United States and Mexico; 3 large distribution centers in the United States; and 1 small distribution center in Mexico. The company, formerly known as Boise Cascade Corporation, was founded in 1913 and is headquartered in Naperville, Illinois.

Advisors' Opinion:

• [By Holly LaFon]

  The company�� primarily competitors are Office Depot (ODP), United Stationers (USTR) and Office Max (OMX). Staples has the best gross margins of its competitors, at greater than 26%, and the only one to increase its book value per share since 2001.

• [By Michael Lewis]

  Office Depot (NYSE: ODP  ) scored a win in its merger with fellow big-box supply store retailer Office Max (NYSE: OMX  ) , but is the company out of the proverbial weeds? The Depot saw its shares decline more than 6% Wednesday due to an earnings report that came in under estimates and altogether left investors and analysts unimpressed. No one has any delusions as to the intense technology-fueled disruption facing Office Depot and its recently acquired competitor, but there are levers the company can pull to remain relevant in the future.

10 Best Retail Stocks To Own For 2014: DSW Inc (DSW)

DSW Inc. (DSW), incorporated on January 20, 1969, is a United States branded footwear and accessories specialty retailer operating 326 shoe stores in 40 states as of January 28, 2012, and dsw.com. DSW has two segments: the DSW segment, which includes the DSW stores and dsw.com sales channels, and the leased business division segment. As of January 28, 2012, it operated 326 DSW stores, dsw.com and leased departments in 261 Stein Mart stores, 74 Gordmans stores and one Frugal Fannie�� store. During the fiscal year ended January 28, 2012 (fiscal 2011), DSW opened 17DSW stores and closed two DSW stores. On May 26, 2011, Retail Ventures, Inc. (RVI) merged with and into DSW MS LLC (Merger Sub), with Merger Sub surviving the Merger and continuing as a wholly owned subsidiary of DSW. In March 2012, the Company announced the opening of its store on 34th Street in Manhattan. In September 2013, DSW Inc announced the opening of a new store in Eatontown, NJ. In October 2013, DSW Inc announced the opening of two new stores in New York City. In October 2013, DSW Inc announced the opening of a new store in Greenville, SC.

The Company offers an assortment of brand name and designer dress, casual and athletic footwear for women and men, as well as accessories through its DSW stores and dsw.com. It also offers kids' shoes exclusively on dsw.com. The Company leases stores, distribution and fulfillment centers and office facilities under various arrangements with related and unrelated parties. DSW also operates leased departments for three retailers in its leased business division segment. As of January 28, 2012, DSW supplied merchandise to 261 Stein Mart stores, 74 Gordmans stores and one Frugal Fannie�� store. During fiscal 2011, DSW added 20 leased departments and ceased operations in 36 leased departments.

Advisors' Opinion:

• [By Teresa Rivas]

  DSW (DSW) was up 2% in after-hours trading, on the company�� increased full year earnings guidance and two-for-one stock split.

  The shoe retailer said that it now expects to earn between $3.60 and $3.80 a share, up from a previous range of $3.40 and $3.60 a share and well ahead of the $3.58 a share analysts were expecting.

  It also announced that it will hold a special shareholder meeting to seek approval for a 2-for-1 stock split of its common shares.

  For the recently ended second quarter, DSW said sales totaled $558 million, below the $568.5 million consensus estimate. Same-store sales rose 4.3%.

10 Best Retail Stocks To Own For 2014: ALCO Stores Inc (ALCS)

Alco Stores, Inc., incorporated on June 2, 1915, is engaged in the business of retailing general merchandise throughout the central portion of the United States of America through a range of department store outlets. The Company�� ALCO stores offer a range of merchandise consisting of approximately 35,000 items, including automotive, commodities, crafts, domestics, electronics, furniture, hardware, health and beauty aids, housewares, jewelry, ladies�� men�� and children�� apparel and shoes, pre-recorded music and video, sporting goods, seasonal items, stationery and toys.

As of February 3, 2013, the Company operated 217 stores in 23 states located in mostly smaller communities in the central United States. The stores average approximately 21,000 square feet of selling space, with an additional 5,000 square feet utilized for merchandise processing, temporary storage and administration.

Advisors' Opinion:

• [By Monica Gerson]

  ALCO Stores (NASDAQ: ALCS) is projected to post its Q2 earnings.

  Digital Cinema Destinations (NASDAQ: DCIN) is estimated to post a Q4 loss at $0.11 per share on revenue of $11.17 million.

10 Best Retail Stocks To Own For 2014: Rite Aid Corp (RAD)

Rite Aid Corporation, incorporated in 1968, is a retail drugstore chain in the United States. As of March 3, 2012, the Company operated drugstores in 31 states across the country and in the District of Columbia. As of March 3, 2012, it operated 4,667 stores. In the Company�� stores, it sells prescription drugs and a range of other merchandise, which it calls front end products. During the fiscal year ended March 3, 2012 (fiscal 2012), prescription drug sales accounted for 68.1% of its total sales. The Company carries a range of front end products, which accounted for 31.9% of its total sales in fiscal 2012. Front end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise and other everyday and convenience products, as well as photo processing. It offers a variety of products under its private brands, which contributed approximately 17% of its front end sales in the categories where private brand products were offered in fiscal 2012. As of March 3, 2012, the Company had opened over 2,100 GNC stores-within-Rite Aid-stores. During fiscal 2012, the Company sold two owned operating stores to independent third parties.

During fiscal 2012, its stores filled approximately 295 million prescriptions and served an average of 2.1 million customers per day. The overall average size of each store in its chain is approximately 12,600 square feet. As of March 3, 2012, 60% of its stores were freestanding; 51% of its stores included a drive-thru pharmacy; 24% included one-hour photo shops, and 46% included a GNC store-within-Rite Aid-store. The Company�� customers may also order prescription refills over the Internet through www.riteaid.com, or over the phone through its telephonic automated refill systems for pick up at a Rite Aid store. It has a strategic alliance with GNC, a retailer of vitamin and mineral supplements.

Advisors' Opinion:

• [By Roberto Pedone]

  One potential earnings short-squeeze candidate is retail drugstore chain operator Rite Aid (RAD), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Rite Aid to report revenue of $6.27 billion on a loss of 4 cents per share.

  The current short interest as a percentage of the float for Rite Aid is notable at 3.7%. That means that out of the 896 million shares in the tradable float, 33.54 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 32%, or by about 8.13 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of RAD could easily explode higher post-earnings as the bears rush to cover some of their short bets.

  From a technical perspective, RAD is currently trending above its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $1.65 to its recent high of $3.75 a share. During that uptrend, shares of RAD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RAD within range of triggering a major breakout trade post-earnings.

  If you're bullish on RAD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $3.75 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 20.36 million shares. If that breakout hits, then RAD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5 to $6 a share.

  I would avoid RAD or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $3.53

• [By Ben Eisen and Saumya Vaishampayan]

  Rite Aid Corp. (RAD) �advanced 9.2% after the drug store chain said same-store sales increased 2.9% in December over the same period a year ago, due to growth in its pharmacy division.

• [By Keith Speights]

  Walgreen easily outperformed both�CVS Caremark� (NYSE: CVS  ) �and�Wal-Mart� (NYSE: WMT  ) . However,�Rite Aid� (NYSE: RAD  ) �blew all of the competitors away in terms of share performance after turning the corner on profitability in the fourth quarter of 2012.�� �

• [By Laura Brodbeck]

  Next week, investors will be waiting for several key earnings reports including Oracle Corporation (NASDAQ: ORCL), Nike, Inc. (NYSE: NKE), BlackBerry (NASDAQ: BBRY), Rite Aid Corporation (NYSE: RAD), and FedEx Corporation (NYSE: FDX).