July 13 Investors should consider buying retail stocks that are trading cheaply such as Bed Bath & Beyond , Staples, Whole Foods Market, and GameStop, Barron's financial newspaper said on Sunday.
While some retail stocks have been battered so far this year and make up the biggest losers on the S&P 500, Barron's said that private equity firms may once again be eyeing the sector.
The newspaper said that Bed Bath & Beyond, the New Jersey-based home goods company that has seen shares fall 26 percent this year, is a prime candidate for a buyout.
Office supplies retailer Staples, meanwhile, could see its shares rise 45 percent. While the company appears to be out of favor because of its footprint of physical stores, it boasts the third-largest online retail business behind Amazon and Apple, Barron's said.
Whole Foods has growth ahead of it, according to the newspaper, despite its stock falling 35 percent this year. Barron's also said GameStop, the heavily shorted video game retailer, could see its shares rise "a lot higher" next year. (Reporting by Liana B. Baker; Editing by Sandra Maler)