Looking For The Top Retail Stocks To Buy This Week? 3 To Watch.
Retail stocks have had an interesting year so far. As we all know, the coronavirus pandemic has swept the globe throughout 2020 and the retail industry has been hit extremely hard. However, some top retail stocks have not only managed to recover but appear to be making the most of the current situation. Through digital acceleration and clever business restructuring, retail companies have taken full advantage of e-commerce platforms. Veteran investors would likely be aware of the top players that have their eyes set on the coming holiday season earnings. This coming retail earnings season could prove to be one to remember for several key reasons.
First, even before the pandemic, the general public naturally spends more money during the year-end holiday season. This year, it could be amplified with extra disposable income saved from not being able to travel. Second, Pfizer’s (PFE Stock Report) reported last week that vaccine supply rollout to the U.K. has been cut in half due to supply chain problems. In light of this, the pandemic may not end anytime soon. Honestly, after such a long year, most would feel that they deserve to treat themselves. Given all these factors, people are more likely to splurge. The question is, which retail companies are ready to meet these consumer needs?
From groceries, clothes, electronic gadgets, and even accessories, there is always a higher quality option available for the right price. Consumers are surprisingly willing to spend even in these times. For example, luxury store Nordstrom’s (JWN Stock Report) share prices have risen by around 80% since March. As such, the competition will definitely be intense. Investors and companies alike will be looking to get ahead of trends and come out on top. Here is a list of top retail companies to consider now.
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Best Retail Stocks To Buy [Or Sell] Right Now: Chewy Inc
Chewy (CHWY Stock Report) is the first retail stock on this list. It is an online retailer of pet food and other pet-related products. Chewy boasts a wide selection of over 45,000 items ranging from private brands to prescription medication and food. One thing that sets the company aside from a conventional pet shop is its express shipping and around-the-clock convenience via its e-commerce infrastructure. On top of that, the company’s Autoship subscription program makes it all the more lucrative for pet owners to buy into the convenience.
Chewy is currently seeing its share prices up by over 200% since the stock market crash in March. The company will be releasing its third-quarter fiscal tomorrow. In the meantime, let us take a look at its previous quarter fiscal. The company saw an increase of 47% year-over-year in total revenue. It noted that a key driver of revenue was the 37% increase in active customers which was brought on by the global self-quarantine mandates. Chewy appears to be benefitting from the tailwinds caused by the coronavirus pandemic. Moreover, its apparent advantageous position in the pet industry’s race towards e-commerce has paid off and will likely continue to do moving forward.
In recent news, the company held massive Cyber Week sales. The sale included impressive deals of up to 50% on dog beds, multi-level cat trees, and more. Provided that pet owners have been stuck at home, the sales would be a good opportunity to spoil their furry companions for the company provided through these tough times. The company appears to be moving forward guns blazing into the holiday season. With all this in mind, do you think that CHWY stock can continue to flourish in 2021?
Best Retail Stocks To Buy [Or Sell] Right Now: Costco Wholesale Corporation
Next, we have Costco (COST Stock Report). Costco is a Washington-based multinational corporation that operates a chain of membership-only warehouse clubs. The company offers a wide variety of merchandise that customers can buy in large, wholesale quantities at lucrative discount rates. Admittedly, this business model has benefited the company this year. Simply put, if people can afford to buy their groceries wholesale, they will have to make fewer trips to the market which minimizes the risk of exposure to the virus. The question on investors’ minds now would be exactly how much this company has gained because of this.
Costco’s share prices are up by 21% in the past six months. The company’s first-quarter fiscal is expected on December 10 later this week. However, Costco did release its sales results for the quarter ahead of time last week. In it, the company reported a 16% increase in net sales year-over-year. That is an increase from the net sales increase of 12% in the previous quarter.
Recently, Costco appears to be continuously pushing innovations to cater to its customers’ diverse needs during these trying times. First, it extended its special senior citizen shopping hours indefinitely amidst coronavirus surges. Second, the company announced that it will transition to a cage-free egg policy in its global egg supply chains. Third, it will be offering Beyond Meat’s (BYND Stock Report) plant-based meatballs in its stores nationwide. From seniors to those with dietary concerns, Costco shows care and concern for them through its actions. Given all this, would you say that COST stock is worth watching?
Best Retail Stocks To Buy [Or Sell] Right Now: Macy’s Inc
Macy’s Inc (M Stock Report) saw its share price rose by over 65% rise last month. The company owns a wide variety of department stores such as Macy’s, the luxurious Bloomingdale’s, and beauty store chain Bluemercury. As of this year, it operates out of 771 locations across the U.S., Guam, and Puerto Rico. Surely, investors must be wondering how Macy’s has managed to operate the last few months with such extensive infrastructure in place.
After looking at the company’s recent quarter fiscal, the answer becomes rather mixed. In it, Macy’s reported a 21% year-over-year drop in revenue. However, it also reported a monumental 415% jump in cash on hand year-over-year as well. This is likely thanks to Macy’s growing digital sales which rose by 27% over the same quarter last year. CEO Jeaf Gennette cites positive customer response towards the company’s expanded fulfillment offerings, such as curbside, store pickup, and same-day delivery as a key factor of recovery this quarter. The effect of the pandemic on Macy’s is still apparent, but it appears that this has not slowed the company down one bit.
Recently, Macy’s has announced its Friends and Family sale. This sale offers 78,000 markdowns on the heels of Cyber Week. In particular, shoppers can get 30% off thousands of best-selling items in categories ranging from clothing to home, with beauty products at an additional 15% off. Coupled with offers on luxury items from Ralph Lauren and other lucrative deals, Macy’s appears to be one step ahead of the competition. Ultimately, will these moves see M stock rising to its former glory? I leave that to you to decide.