Telsey Advisory Group's Retail Rundown: Top Stocks To Own In 2024

Retail stocks have taken off in December and many are anxious to see if the trend will continue in the new year. Dana Telsey, CEO of Telsey Advisory Group, shared her retail picks for 2024 Wednesday on CNBC's "Squawk On The Street."

Potential 2024 Winners: Telsey told CNBC she's looking for companies focused on innovation and offering value in 2024. 

Ralph Lauren Corporation RL is one of the names she sees displaying those qualities in the new year. Telsey sees low to mid-single digit sales growth for Ralph Lauren and expects the stock to reach $165 in 2024. It was trading around $145 per share at publication time, according to Benzinga Pro.

Telsey also flagged Bath and Body Works, Inc. BBWI as a company “poised for growth” in 2024. She highlighted the company’s loyalty program, which has 41 million members eager to sample the company’s new offerings and categories, she said.

When asked about Target Corporation TGT, Telsey noted that the retailer’s upcoming brand collaborations and merchandise enhancements could be potential catalysts for future growth.

“Margin recovery should be the game plan for 2024 after what happened in 2023,” she added.

Beauty And Luxury Goods: Telsey didn't provide a rosy outlook for Estee Lauder Companies, Inc. EL. The analyst expects the company to have a “messy year in 2024” and sees continued earnings pressure ahead due to ongoing struggles in the Chinese market.

Telsey noted that Estee Lauder is expected to unveil new product innovations in the second half of 2024, which could help turn things around late next year, she said.

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Instead, Telsey sees more upside opportunity in the luxury goods sector.

"Taking advantage of the weakness in companies like LVMH is an opportunity given the strength they have across so many different categories,” she said.

Telsey also flagged Tapestry, Inc. TPR as another company to watch next year, citing potential growth driven by its business combination with Michael Kors, which was announced earlier this year.

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