The wave of deal-making on Wall Street hasn't extended to retail yet. But that's about to change.
That's because retailers make for great M&A candidates – which also makes for some stocks to buy now ahead of this takeover trend.
Takeovers provide chances for companies to cross-sell products and negotiate better with landlords and suppliers. Plus, retailers face low regulatory barriers to deals.
That's why major retailers are among a list of 71 companies Morningstar says are some of the most likely takeover targets this year.
"We think 2013 will bring an uptick of deal activity," said R.J. Hottovy, director of global consumer equity research for Morningstar. "There's no shortage of companies with available capital on their balance sheets and high operating margins, fewer organic growth opportunities and candidates with attractive valuations."