- As diversified and cash-rich retailers like Amazon take the world by storm, investors have been left scrambling to identify companies that will be able to withstand the disruption over the long term.
- Credit Suisse has singled out seven companies it says will continue growing a key measure of financial strength, even amid mounting headwinds.
It’s Amazon‘s world, and the rest of the retail industry is just living in it. Or at least that’s how it seems these days.
It started by calculating the share price implied cash flow return on investment (CFROI) for each company in the global retail industry. By comparing this figure with the five-year historical median and its forecast for the next year, Credit Suisse was then able to see which companies are already priced for falling returns amid heavy disruption.
By the same token, the firm was able to pinpoint the elite handful of stocks expected to grow returns even as industry headwinds mount. And the findings show that not all hope is lost for (1) companies with a large and growing…