If you want to expand exposure to small caps or capture underappreciated consumer strengths, consider adding retail stocks like Shoe Carnival (NASDAQ: SCVL) and American Eagle Outfitters (NYSE: AEO) to your buy list. Their stock prices surged by double-digits in early September, signalling bottoms and reversals that can drive shareholder value for years.
Among the key takeaways from their reports are outperformance and increased guidance, prompting short sellers to cover their positions, and setting the market sentiment up for improvement in the coming quarters.
