Best Retail Companies To Watch For 2014

BALTIMORE (Stockpickr) -- Three more days -- that's how much time stands in between this morning's open and the final trading session of 2013.

It would take a pretty active three days to derail what's been a spectacular year for stock investors. Since the calendar flipped over to January, the S&P 500 has rallied more than 29%, climbing to new all-time highs in spite of a real lack of participation in among retail investors. And if yesterday's trading is any indication, a Santa Claus rally looks likely to tack on some extra gains before the first trade of 2014.

That's why we're taking a closer technical look at five year-end trades to take this week.

If you're new to technical analysis, here's the executive summary.

Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

10 Best Clean Energy Stocks To Buy Right Now: Sears Holdings Corporation(SHLD)

Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The company?s Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and DieHard. This segment?s stores provide consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables, and apparel, as well as operate in-store pharmacies. Its Sears Domestic segment operates stores that sell merchandise under the Kenmore, Craftsman, DieHard, Lands? End, Covington, Apostrophe, and Canyon River Blues brand names. This segment?s stores provide appliances, consumer electronics, tools, sporting goods, outdoor living, lawn and garden equipment, home fashion products, automotive products, apparel, footwear, jewelry, accessories, health and beauty products, pantry goods, household products, and toys. The Sears Domestic segment also provides clothing, acces sories, footwear, and soft luggage; appliances and services to commercial customers in single-family residential construction/remodel, property management, multi-family new construction, and government/military sectors; premium appliance and plumbing fixtures to architects, designers, and new construction or remodeling customers; parts and repair services for appliances, lawn and garden equipment, consumer electronics, floor care products, and heating and cooling systems; and home improvement services. The company?s Sears Canada segment engages in the retail of apparel and other softlines. Sears Holdings Corporation operates approximately 2,172 full-line stores and 1,338 specialty retail stores in the United States; 500 full-line and specialty retail stores in Canada, as well as operates 17 floor covering stores, 1,734 catalog pick-up locations, and 108 travel offices; and kmart.com and sears.ca Websites. The company was founded in 1899 and is based in Hoffman Estates, Illi nois.

Advisors' Opinion:

• [By Morgan Housel]

  Backfired
  BusinessWeek profiles Sears Holdings (NASDAQ: SHLD  ) Eddie Lampert's management style:�

  An outspoken advocate of free-market economics and fan of the novelist Ayn Rand, he created the model because he expected the invisible hand of the market to drive better results. If the company's leaders were told to act selfishly, he argued, they would run their divisions in a rational manner, boosting overall performance.

• [By Jeff Reeves]

  Johnson was fired, but the bleeding has continued as the company continues to operate at a loss. There has been a small glimmer of hope lately, with a one-day pop of 25% on hopes that cost-cutting would succeed and revenue declines had finally bottomed ��but the end of bad news is not the start of growth, so don�� believe the turnaround hype just yet.

  Sears (SHLD)
  

  Returns since 1/1/14: -24%
  Returns since 1/1/11: -45%
  Revenue Growth Last Year: -9% ($39.8 billion in FY13 to $36.2 billion for FY14)

Best Retail Companies To Watch For 2014: Rex Trueform Clothing Company Ltd (RTO)

Rex Trueform Clothing Company Limited is a South Africa-based company engaged in the manufacturing and marketing of clothing. The Company operates under two segments: Retail segment, the Company, through its ownership of Queenspark Limited, which operates a nationwide chain of Queenspark and J CREW stores, has a interest in the retailing of men�� and women�� clothing and related accessories. Through Property segment, Rex Trueform and its subsidiary have a direct investment in a portfolio of properties located in and around Cape Town. These properties are held either for the purpose of operations or for investment purposes. As of June 30, 2012, the Company operated 55 stores. In September 2012, the Company launched its newest brand Cath.Nic, a new fashion label exclusive to Queenspark. During the fiscal year ended June 30, 2012, the Company opened three new stores. Advisors' Opinion:

• [By Corinne Gretler]

  Rentokil Initial Plc (RTO) climbed 3.1 percent to 106 pence as Bank of America Corp. upgraded the U.K. pest-control and hygiene-services company to buy from neutral. The brokerage predicted that cash flow will improve in 2014 and 2015.

• [By Sofia Horta e Costa]

  Rentokil Initial Plc (RTO) rose the most in almost eight weeks after a report that private-equity investor Clayton Dubilier & Rice LLC is considering combining the company�� office-maintenance unit with that of Balfour Beatty Plc. Cobham Plc dropped 4.6 percent as a shareholder sold a 3.6 percent stake in the maker of defense and aerospace equipment.

Best Retail Companies To Watch For 2014: Mattress Firm Holding Corp (MFRM)

Mattress Firm Holding Corp. (Mattress Firm), incorporated on January 5, 2007, is a specialty retailer of mattresses and related products and accessories in the United States. The Company conducts its operations through its indirect, wholly owned subsidiary, Mattress Holding Corp. and its subsidiaries. As of August 2, 2011, the Company and its franchisees operated 620 and 107 stores, respectively, primarily under the Mattress Firm name, in 60 markets across 25 states. The Company focuses on the national brands, but also offers its customers its Hampton and Rhodes private label mattresses. The Company has introduced its YuMe brand. On October 15, 2010, the Company acquired Peak Management, LLC. On December 1, 2010, the Company acquired Maggie's Enterprises, Inc. In May 2012, Mattress Firm announced the completion of its acquisition of regional bedding company, Mattress Giant Holding Corp. Effective September 9, 2013, Mattress Firm Holding Corp, a unit of JW Childs Associates LP, acquired Olejo Inc, a provider of ecommerce retail services.

The Company�� stores carry national mattress brands, with a range of styles, sizes, price points and features. The Company provides its customers with their choice of traditional mattresses, including Sealy and Simmons, as well as specialty mattresses, such as Tempur-Pedic. In addition to its mattress selection, the Company offers a range of bedding-related products and accessories.

Conventional Mattresses

Conventional mattresses, such as those of Sealy (including Sealy Posturepedic and Stearns and Foster) and Simmons (including Simmons Beautyrest), utilize steel-coil innersprings. During the fiscal year ended February 1, 2011, the conventional mattresses represented approximately 75% of bedding industry sales in the United States and approximately 60% of the Company�� total sales. In addition to these national brands, the Company also offers its Hampton and Rhodes private label mattresses.

Specialty Mattresses

Specialty mattresses, such as those manufactured by Tempur-Pedic and select comfort, utilize materials other than steel-coil innersprings to provide comfort and support. In fiscal 2010, the specialty mattresses represented approximately 30% of the Company�� total sales. The Company is expanding its assortments in the categories, including viscoelastic foam mattresses and yume sleep system. Viscoelastic foam, also referred to as memory foam or polyurethane foam, features a temperature sensitive foam core that reduces pressure points and tossing and turning by contouring to one's body. The Company has introduced a sleep system made of foam produced from coconut oil, utilizing a technology that uses ambient air to heat and cool the mattress surface.

Furniture and Accessories

During fiscal 2010, the Company was in the process of introducing new headboards and footboards, which complement its current bedding products. All of the Company�� stores carry an assortment of bedding-related accessories, including bed frames, mattress pads and pillows. In fiscal 2010, bedding-related products and accessories represented approximately 7% of the Company�� total sales from Company-operated stores.

The Company competes with Mattress Giant, American Mattress, Haverty's, Rooms-To-Go, Macy's, Sears, JC Penney, Walmart, Costco and Original Mattress.

Advisors' Opinion:

• [By Wallace Witkowski]

  Mattress Firm Holding Corp. (MFRM) �shares rose 5% to $46.66 after the mattress retailer raised its outlook for the year.

• [By Peter Graham]

  The Q2 2014 earnings report for mattress stock Select Comfort Corp (NASDAQ: SCSS), a potential peer or competitor of other mattress players like Mattress Firm Holding Corp (NASDAQ: MFRM) and Tempur Sealy International Inc (NYSE: TPX), is due out on Wednesday after the market closes. Aside from the Select Comfort Corp earnings report, it should be said that the estimated release date for the Mattress Firm Holding Corp Q2 2014 earnings report is the the week of September 4th while the estimated date for the Tempur Sealy International Inc Q2 2014 earnings report is the week of July 21st. And while the last earnings report from Select Comfort Corp did not cause shares to move much, shares plunged 19% in January as�preliminary fourth quarter results reignited concerns over growth going forward. This came after a 25% plunge after an October earnings report�badly missed expectations.

Best Retail Companies To Watch For 2014: Lowe's Companies Inc.(LOW)

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.

Advisors' Opinion:

• [By Dan Dzombak]

  Today's Dow leader
  Given the negative retail sales report, it's a bit of a surprise that today's Dow leader is Home Depot (NYSE: HD  ) , up 2%. Home Depot stock has had a good year so far, up 18% as the company benefits from a rising housing market. Today, Home Depot stock was upgraded by a Jeffries analyst from hold to buy, with a price target of $85. In light of rising housing prices, the analyst said, "We think an appreciating asset is much easier for the homeowner to invest in than a depreciating one -- not just psychologically, but from a credit perspective as well." Home Depot competitor Lowe's (NYSE: LOW  ) also sees a strengthening home-improvement market and plans to add 9,000 permanent part-time employees.

• [By Bob Ciura]

  The United States is finally starting to thaw from the brutal winter, and this couldn't come soon enough for retailers. In addition, the housing market continues to strengthen, evidenced by rising home prices across the country. These tailwinds are combining to provide a great deal of support to Home Depot (NYSE: HD  ) , the biggest home-improvement chain in the U.S, as well as close rival Lowe's (NYSE: LOW  ) .

• [By Paul Ausick]

  Rising home prices also affect the home improvement stores, Home Depot Inc. (NYSE: HD) and Lowe�� Companies Inc. (NYSE: LOW). Since mid-May, Home Depot stock is down about 2% while Lowe�� stock is up nearly 10%. And for the past 12 months, Home Depot is up about 33% and Lowe�� is up about 62%. Of the housing stocks, only PulteGroup shows a gain over the past year.

• [By Paul Ausick]

  Before markets opened on Wednesday, Lowe�� Companies Inc. (NYSE: LOW), the country�� second largest home improvement store chain, reported second-quarter diluted earnings per share of $0.88, up from $0.64 in the second quarter a year ago, and sharply higher than the consensus estimate from Thomson Reuters of $0.79. Sales rose from $14.2 billion a year ago to $15.7 billion, again higher than the consensus estimate of $15.06 billion. Same-store sales rose 9.6% in the quarter.

Best Retail Companies To Watch For 2014: Group 1 Automotive Inc. (GPI)

Group 1 Automotive, Inc., through its subsidiaries, engages in the marketing and sale of automotive products and services. It sells new and used cars, light trucks, and vehicle parts. The company also provides vehicle financing services; service and insurance contract services; and automotive maintenance and repair services. The company has operations located in metropolitan areas in the states of Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, Oklahoma, South Carolina, and Texas in the United States; and in the towns of Brighton, Hailsham, and Worthing in the United Kingdom. As of October 25, 2012, it owned and operated 121 automotive dealerships, 158 franchises, and 30 collision centers in the United States and the United Kingdom that offer 32 brands of automobiles. The company was founded in 1995 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Ning Jia]

  In 2001, Advance Auto Parts acquires Carport Auto Parts, a regional retail chain with 29 stores in Alabama and Mississippi. The combination of Advance and Carport locations establishes Advance Auto Parts as the market leader in Alabama and Mississippi. In November of 2011, Advance acquires 671 Discount Auto Parts, Inc., a regional auto parts chain in Florida, Alabama, Georgia, South Carolina, and Louisiana. The acquisition strengthens the company's position as the market leader in Florida. Upon completion of this merger, Advance Auto Parts becomes a publicly traded company, listed as a common stock on the New York Stock Exchange under the symbol AAP. After the Company went public in 2001, AAP continued to expand both organically and through acquisition. On October 16th 2013, Advance Auto Parts entered into a definitive agreement to acquire General Parts International, Inc. (GPI), a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands, in an all-cash transaction with an enterprise value of $2.04 billion. The transaction has been approved by the boards of directors for both companies. The deal creates the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.2 billion and more than 70,000 employees.