In a research note on retailers, BofA analyst Elizabeth Suzuki said she thinks the stocks that are best positioned for outperformance in 2020 are Aaron's (AAN), Advance Auto Parts (AAP), Bed Bath & Beyond (BBBY), Lowe's (LOW) and Tempur Sealy (TPX). Conversely, the analyst thinks several hardline retail stocks are poised to underperform in 2020, including Floor & Decor (FND), GameStop (GME), Michael's (MIK) and Sleep Number (SNBR). The firm's proprietary RENO barometer suggests that renovation spending may sequentially improve through 1H before tapering off in 2H. While she nots that essentially every company in her coverage universe stands to gain from a trade war resolution, the biggest beneficiaries would likely be Michael's, Floor & Decor, Best Buy (BBY), RH (RH) and Williams-Sonoma (WSM). Suzuki raised her price target for Aaron's to $85 from $80.

Bullish option flow detected in GameStop with 44,913 calls trading, 1.9x expected, and implied vol increasing over 3 points to 96.82%. 4/26 weekly 11.5 calls and May-24 12 calls are the most active options, with total volume in those strikes near 7,700 contracts. The Put/Call Ratio is 0.10. Earnings are expected on June 5th.