Best speciality retail stocks to buy in 2022

Speciality retail stocks could be among the hottest picks of 2022 after delivering mixed performances last year. Here are the two that could reward investors significantly.

Bath & Body Works

Bath & Body Works Inc. (NYSE:BBWI) shares rallied more than 115% last year. However, the stock still trades at exciting valuation multiples with a P/E ratio of 14.82.

Furthermore, analysts expect BBWI’s earnings per share to grow by 326% this year before rising at an average annual rate of 15.40% over the next five years.

Technically, the stock seems to be trading within a descending channel formation in the intraday chart. However, it also seems to have found support from the 100-day moving average. 

Investors could target profits at about $73.49 or higher at $77.28, while $67.12 and $63.48 are support levels.

Best Buy

Best Buy Co. Inc. (NYSE:BBY) shares spiked by nearly 30% in the 7-weeks starting on the 1st of October, before falling by 27%.

The consumer electronics retailer’s stock now trades at an attractive P/E ratio of 12.38, making it a compelling option for value investors.

Technically, BBY shares seem to be trading within an ascending channel formation in the intraday chart.

Investors could target extended gains at about $109.04 and $113.87, while $100.81 and $96.15 are support levels.