- Bank of America Merrill Lynch is out with its favorite and least favorite picks in the hardlines retail sector for 2019.
- The firm names Lowe's (NYSE:LOW), Advance Auto Parts (NYSE:AAP) and Tempur Sealy (NYSE:TPX) as the best positioned names for outperformance in 2019. "Within our coverage universe, these companies have the best combination of company-specific growth initiatives, a favorable macro backdrop, relatively low leverage, and high quality," reads the BAML note.
- On the other side of the equation, BAML thinks RH (NYSE:RH) and Williams-Sonoma (NYSE:WSM) will underperform amid cyclical headwinds and "over-exposure" to high-income consumers.