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Fidelity Investments research analyst Peter Dixon on how investors can pick retail stocks to boost their portfolios.
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With OK up fund manager who is beating the markets -- your holiday shopping.
You actually -- two -- strip shopping days this year did you know that and Peter Dixon Fidelity Investments research analyst.
Has an excellent investment record by picking stores he feels your shopping out and says while it is too early to tell just how successful this season will be.
He's optimistic for spring a -- and a Fox Business exclusive from Boston with his retail winners and losers Peter thank you for joining us.
Pilot thanks for having me today hey -- -- -- to -- -- -- to date you're up 26%.
Year over year Europe 28%.
V you're just the kind of fund manager I want in front of our viewers because.
You actually have a very good track record of success of let's get right to it who looks good here with the winners.
Well you know I'm generally optimistic on the potential for -- -- this holiday season but I'm seeing some mixed signals out there -- and I think that it's really too early to determine who the winners and losers are.
-- but I think you do have to be very selective I'm looking for the best brands in the best categories because I think that over time that will lead to the best earnings growth.
And I believe that stocks follow earnings so best earnings growth should lead to the -- stock performance don't know about tugged at.
How do you go about choosing anatomy we know with Warren Buffett he does that very much the same he likes to pick best in class.
We're second best in class something with some competitive moat around the product but how do you go about what are your metrics for picking a stop to put in your fund.
Well it's it for me it's really all about bottom up fundamental analysis of looking to your financial statements.
Talking to companies talking to consumers looking at.
What's going on out in stores but.
Really just kind of paying attention watching to see what brands are gaining traction in gaining momentum what are popular and also what categories are are growing the fastest or have the potential to grow the fastest.
What categories are growing -- with alacrity mean the ones that really look healthy.
Shore so there it you -- but where -- accessories.
Handbags things like that will be one good example.
Purses.
I exactly -- I don't know with the thing with women we we love brand new bags every fourth season every -- every second season -- OK so it -- -- specifically you know it let's look at what's in your fund.
And we've got a whole bunch an -- -- but but here's some of the stocks that are that are up there.
Is it is it more the athletic footwear or off price or look we we have seen that some of the boots.
-- there are not doing as well I don't know if you own but you know that's one that's not been doing so wonderfully but is there a specific a sub sector here.
Well it speaking the footwear certainly athletic areas of athletic in areas of fashion boots have been doing well.
In general but consumer tastes can change and -- it really comes down to individual brands and styles that are resonating with.
Consumers let's go with the retailer areas that you feel are price sensitive that might not necessarily do was well in 2013.
Sure absolutely well if you look at they kind of moderate level department stores.
Potentially some challenges there certainly some areas children's apparel retail.
I would say if you areas of the teen space although I think the -- -- is generally doing well but again you have to be selective because you have winners and losers and I think there are some that.
That are lagging in the teens based.
And that you -- It you really have to be selective about about an individual -- I could you know paint some broad strokes that talked about moderate department stores but there could be some departments are that are doing well.
Another area just a category that I would call out right now that's just a little bit choppy is weather sensitive areas that we all know that.
It's been out pretty warm and we had a very unseasonably warm winter last year so certain areas of weather sensitive categories are also I would say more choppy not not weak across the.
Board although -- couple snowstorms we've got one on the midwest -- so sometimes up my juice the stock of Peter nice to see you happy holidays.
Thanks so much for having me today -- and any time and Peter again -- up the year over year 28%.
He is the Fidelity Investments research analyst and portfolio manager.
