We have looked at the Australian Retail Sector on a number of occasions and based on a growing interest in this sector by investors, we will use VectorVest to look at it again for potential investment opportunities.

At VectorVest we don’t make predictions; we deal in facts looking at what is happening at the moment in making our investment decisions. As of 19 March 2024, we have seen several retail stocks showing strong price performance. It appears contrary to the general narrative out there of rates higher for longer and tougher times prevailing, especially for the Retail Sector.

There are a number of stocks in Consumer Discretionary Retailing that are holding up well at present.  How do we know this? The Industry Viewer in VectorVest gives us the answer. Let’s take a closer look in VectorVest 7 (if you would like access to VectorVest 7 for Australia, you can trial us out for 30 days).

Click on the Viewers tab and then on the left-hand side, click on Industry Viewer. All the industries are sorted by Relative Timing (RT) in descending order. This is a goldmine of valuable information. You now have a snapshot of the key performing industries in Australia. The top 3 industries on 19 March 2024 are ETFs with the 4th best performing industry being Consumer Discretionary (Retailing).

To view the Industry Graph, right click on the Consumer Discr (Retailing) industry and select View Industry Graph:

For the purpose of this exercise, ensure you have the Earnings Per Share (EPS) parameter ticked.

VectorVest’s graph tool is invaluable in providing insight and an overall picture of a given industry. If the average price of all the stocks in an industry is going up, and the industry has rising earnings (which are the engine of share price growth), you would expect to find several good stocks in that industry.

Now let’s use VectorVest to find all the stocks in Consumer Discretionary (Retailing). Going back to the Industry Viewer, right click on Consumer Discretionary (Retailing) and then select: View Stocks in Industry Group. A new window will open up, listing all the stocks that make up the industry. From there you can use your VectorVest Stock Analysis Tools to find the best stocks that suit your investment objectives.

As an example, on 19 March 2024, the second stock on the list was CTT.AX. Graphing it shows the turnaround in EPS since the middle of last year. This stock also has an impressive annual Earnings Growth Rate (GRT) of 37%.

Should falling inflation plus interest rate cuts become a sustainable reality, this stock could benefit. Use your VectorVest tools to help you find the winners.


Residents of Australia:
VectorVest Inc (ARBN 654 498 218) and Russell Markham are Authorised Representatives (No. 1294036 and No 1294037) of Centra Wealth Pty Ltd (ABN 39 158 802 450) which holds an Australian Financial Services License (AFSL No. 422704). Please refer to our Financial Services Guide which provides you with information about us and services we can provide. Any advice is general in nature and has not considered your personal objectives, financial situations or needs. You should consider whether the advice is suitable for you and your personal circumstances. Backtest results and Model Portfolio performance and profit calculations are theoretical and calculated by VectorVest Inc and do not reflect actual investments in the companies mentioned. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Actual results may be affected by known or unknown risks and uncertainties that cannot be reasonably included in a backtest, and therefore these outcomes can differ materially from backtested expectations. As a result, past performance should not be relied on as a guarantee for future results.