4 Top Retail Stocks To Watch Before July 2021
For investors looking for the best stocks to buy today in the stock market, retail stocks might be worth looking at. For one thing, the industry would be gaining momentum now as the economy gradually reopens. On top of that, consumer spending power is also on the rise thanks to the current round of stimulus checks. With these tailwinds in play, it would make sense then that investors are looking for retail stocks to buy.
Even now, investors would be awaiting the June jobs report due this Friday. Wall Street economists are predicting that up to 700,000 non-farm payrolls have been added back to the economy this month. In fact, Lydia Boussour, senior economist at Oxford Economics, believes that this number could be as high as 826,000. Boussour argues that as business kicks into high gear, the service industry will continue to bolster its workforce accordingly. With this in mind, we could see more activity in the reopening trade, which would include the retail sector.
If anything, the retail industry appears to be gearing up for times ahead. Earlier this week, home craft e-commerce giant Etsy (NASDAQ: ETSY) made a $217 million play. In detail, the company agreed to acquire Elo7, which Etsy CEO Josh Silverman describes as “the Etsy of Brazil”. Silverman believes that this move is strategic for Etsy because he sees a “meaningful” opportunity for Brazil’s e-commerce sector to “grow faster than the U.S.” Meanwhile, Walmart (NYSE: WMT), the largest retailer in the world, is also expanding its offerings. Starting this week, the company is now offering a less expensive version of insulin for $73 a vial. No doubt, retail companies seem to be bringing their A-game to the table. With all that said, check out these four hot retail stocks in the stock market today.
Top Retail Stocks To Buy [Or Sell] This Week
- ContextLogic Inc. (NASDAQ: WISH)
- Nike Inc. (NYSE: NKE)
- Jumia Technologies (NYSE: JMIA)
- Bed Bath & Beyond Inc. (NASDAQ: BBBY)
ContextLogic or Wish is an online e-commerce platform that facilitates transactions between sellers and buyers. It is one of the largest e-commerce marketplaces in the world and boasts a wide variety of products to consumers all over the world. Wish says that it is revolutionizing the way consumers shop by providing them a personalized and entertaining experience that is accessible to all through their mobile devices. WISH stock currently trades at $13.32 as of 10:18 a.m. ET and has been up by over 70% in the last month.
Last month, the company reported its first-quarter financials. Firstly, it posted a revenue of $772 million, a 75% increase year-over-year. This was driven by strong Marketplace and Logistics revenue growth. Secondly, it continues to see strong demand for its Wish app and continues to gain momentum on its customer acquisition. Notably, it gained a huge chunk of its revenue from its core marketplace, at $477 million. This represented a 40% growth year-over-year. Given all of this, will you consider adding WISH stock to your portfolio?
Nike is a multinational retailer that designs and manufactures athletic apparel, footwear, and equipment. The company has had a strong track record of investing to fuel growth and increase returns to shareholders through dividends and share repurchases. This would include 19 consecutive years of increasing dividend payouts. Most recently, the company returned approximately $2.3 billion to shareholders for fiscal 2021. NKE stock currently trades at $154.12 as of 10:19 a.m. ET and has been up by over 15% in the last 5 trading sessions.
This latest rally seems to be coming from the company’s fiscal 2021 fourth-quarter results. In it, the company reported that revenue was up by 96% at $12.3 billion. The company’s Nike Direct fourth-quarter sales increased by 73% to $4.5 billion. Nike also posted diluted earnings per share of $0.93 for the quarter. The company says that its fourth-quarter revenue growth was led by higher wholesale shipments due to the annualization of coronavirus-related physical retail closures in the prior year across the globe. This could also be due to its unique competitive advantage and deep connection with consumers all around the world. The latter is evident as Nike has very strong brand loyalty. All things considered, will you buy NKE stock?
Jumia Technologies Inc.
Jumia is a retail company that is a leading pan-African e-commerce platform. Its marketplace connects sellers with consumers and offers a wide range of goods from consumer electronics to apparel and home products. The company also has a logistics business that consists of a large network of leased warehouses and pick-up stations for consumers. JMIA stock currently trades at $29.95 as of 10:20 a.m. ET and is up by over 400% in the last year.
Last month, the company reported its first-quarter financials as well. In it, gross profit increased by 11% year-over-year. Jumia says that its brand strength continues to grow and it is working towards increasing consumer convenience. It is also diversifying its monetization streams beyond commissions and fulfillments costs pass-through. One notable example is Jumia Advertising, an in-house digital advertising agency catering to both Jumia sellers and third parties. Given the excitement surrounding the company, will you consider JMIA stock a top retail stock to buy?
Bed Bath & Beyond Inc.
Following that, we will be looking at major homeware retailer Bed Bath & Beyond Inc. (BBBY). In brief, the New Jersey-based company operates a chain of domestic merchandise retail stores. The likes of which span the U.S., Puerto Rico, Canada, and Mexico. Furthermore, BBBY’s current portfolio consists of a wide array of merchandise across its Home, Baby, Beauty, and Wellness divisions. While the company continues to ride home improvement trends, BBBY stock could be in focus. As it stands, the company’s shares are currently trading at $36.55 as of 10:21 a.m. ET.
Earlier today, BBBY posted its first-quarter results for the fiscal year. In it, the company reported total revenue of $1.954 billion, marking a 49% year-over-year increase. Now, this figure does exceed that of Wall Streets’ estimates of $1.87 billion. On top of that, the company reported a core sales growth of 73% year-over-year. According to CEO Mark Tritton, this quarter shows that BBBY is starting the year “in a position of strength”. Looking forward, Tritton had this to say, “We are a stronger, more agile company than ever before and well on our way to building long-term growth and unlocking greater shareholder value.” With the company confidently raising its full-year outlook, would you consider BBBY stock a buy now?