Surging inflation, inventory gluts and fears of slowing consumer spending battered some popular retail stocks in 2022, but analysts think some of these names are poised for a rebound in the new year. The SPDR S & P Retail ETF (XRT) , which tracks the sector, plummeted 33% as companies grappled with this difficult macro environment and fears of a slowdown in spending on discretionary goods. XRT 1Y mountain The S & P Retail ETF dropped 33% in 2022 As these problems linger in the new year, CNBC Pro searched for stocks within the XRT that Wall Street is positive on in the new year. We screened for names with a consensus buy rating of 60% or more, and upside potential exceeding 30% based on the average price target. Here are the names that met the criteria: Growth stocks took a brutal hit in 2022 in the face of a hawkish, and rate-hiking Federal Reserve. Against this backdrop, Amazon shares dove nearly 50%, with the e-commerce giant joining a slew of technology-related companies slashing their workforces after rapid growth to slow their cash burn. Even so, more than 77% of analysts say the stock is a buy, with upside potential of nearly 36.5% from Thursday’s close, FactSet data shows. Shares have already bounced back almost 17% since 2023 kicked off. A slew of little-known retail stocks dominated the list, including Shoe Carnival , a footwear company with a unanimous buy rating on Wall Street and the largest upside potential of the group. Shares shed about 39% in 2022 but the consensus price target suggests the stock stands to gain as much as 66% from Thursday’s close. The stock’s already jumped 7.6% in 2023. SCVL YTD mountain Shares are up nearly 8% in 2023 Franchise Group , meanwhile, made headlines last year on news that it was briefly in talks to acquire Kohl’s . The owner of The Vitamin Shoppe shed 54% in 2022, but analysts expect good times ahead for the stock. Eighty-percent of analysts say shares are a buy, with the consensus price target implying 33% upside from Thursday’s close. Car dealership group Lithia Motors and outdoor sporting goods retailer Sportsman’s Warehouse also met the criteria.
Wall Street's favorite retail stocks include Amazon and this little-known shoe company