This set-up could come from retail stocks, especially as they now have a lot of fundamental momentum behind them, coming from both the manufacturing sector and its distant cousin in the business services sector. More than that, a brief expansion in the transportation sector, as seen in the price action of trucking stocks, means potential consumer activity heating up, leading markets to the retail sector this time around.
To ride this expansion trend higher, investors might want to look into the SPDR S&P Retail ETF (NYSEARCA: XRT) as a diversified way to get exposure to the space. But for those who like to take a bit more risk in exchange for a potentially better reward, there are two names—Floor & Decor Holdings Inc. (NYSE: FND) and Shake Shack Inc. (NYSE: SHAK)—that offer above-average upside.
