Gordon Haskett waves ‘yellow flag,’ downgrades four retailers after rally

Gordon Haskett downgraded four names in the broadlines and hardlines retail sector: Five Below (FIVE) and Costco (COST) to Accumulate from Buy, Dollar Tree (DLTR) to Hold from Buy, and Lowe’s (LOW) to Hold from Accumulate. The analyst is “waving a yellow flag” with following the rally in the stocks year-to-date. The firm still holds a high degree of optimism for the remainder of 2024 amid low unemployment levels, positive wage growth and improving inflation. However, there is also a “notable wall of worry,” including the recent uptick in gas prices, election risk, fewer holiday shopping days and uncertainty on when home improvement activity will improve, the analyst tells investors in a research note.