5 Top Retail Stocks To Check Out In The Stock Market Today
Retail stocks are in an interesting position in the stock market today, to say the least. On one hand, consumer spending does not seem to be all that affected by rising prices. Even with inflation rising at its fastest pace in about 30 years, this is evident in October’s retail sales figures exceeding estimates. On the other hand, online sales across the recent Black Friday-Cyber Monday weekend hit a snag as coronavirus jitters weighed in on consumer markets. However, it is important to note that the weekend sales figures are being compared to a year ago where the reopening trade was going strong. Moreover, investors have plenty of reasons to watch top retail stocks now.
For instance, things appear to be heating up in the Brazilian e-commerce market. This is evident as newcomer on the local scene Sea Limited (NYSE: SE), continues to gain ground from rival Mercadolibre (NASDAQ: MELI). According to Morgan Stanley (NYSE: MS) analyst Ranjan Sharma, Sea Limited’s e-commerce platform Shopee is posing “increasing competition” for Mercadolibre. Namely, the Shopee Brasil app now boasts over 100 million downloads since launching in January last year. Sharma notes that this is a gain of 5% of the local e-commerce market share. Regardless, both companies’ shares are still up by over 130% since their pandemic era lows. As investors consider pivoting back to pandemic plays such as these in the stock market now, one question remains. That is, could retail stocks be worth investing in now?
Top Retail Stocks To Buy [Or Sell] In December 2021
- Home Depot Inc. (NYSE: HD)
- Signet Jewelers Ltd. (NYSE: SIG)
- Dollar General Corporation (NYSE: DG)
- Costco Wholesale Corporation (NASDAQ: COST)
- Walmart Inc. (NYSE: WMT)
Home Depot Inc.
Home Depot is one of the largest home improvement retailers in the world, with approximately half a million associates and over 2,000 stores in the U.S., Canada, and Mexico. Its typical store today averages 105,000 square feet of indoor retail space. Furthermore, it boasts an impressive e-commerce business that offers over 1 million products for both its DIY customers and professional contractors. HD stock currently trades at $409.18 as of 12:44 p.m. ET and has risen by over 45% in the past year alone.
Last month, the company reported its third-quarter financials. Diving in, sales for the quarter were $36.8 billion, increasing by 9.8% year-over-year. Comparable sales for the quarter increased by 6.1% year-over-year. Net earnings for the quarter was $4.1 billion, or $3.92 per diluted share. Given this piece of news, is HD stock worth buying right now?
Signet Jewelers Ltd.
Following that, we have Signet Jewelers, the world’s largest retailer of diamond jewelry. With approximately 2,800 stores primarily under its portfolio of brands, it continues to be a purpose-driven and sustainability-focused company. This includes Kay Jewelers, Zales, and Diamond Direct among others. SIG stock currently trades at $89.60 as of 12:44 p.m. ET and has enjoyed gains of over 200% in the past year alone. Today, the company has just reported its third-quarter financials for fiscal 2022 and has raised its guidance.
Firstly, the company reported total sales of $1.5 billion, increasing by more than $235 million compared to a year ago. Also, it notes that its e-commerce sales were up by 14.4% year-over-year at $273.1 million. Signet Jewelers also posted a GAAP diluted earnings per share of $1.45 for the quarter. It now expects a fiscal 2022 total revenue of $7.41 billion to $7.49 billion. Secondly, the company says that its data-driven customers’ insights and planning have helped secure an earlier receipt of its holiday assortment and ensure no significant disruptions to its supply chain of labor needs. With all that being said, is SIG stock a retail stock to consider investing in today?
Dollar General Corporation
Dollar General is a chain of variety stores across the U.S. With over 80 years of delivering value for its consumers, the company offers everyday products that range from food to health and cleaning supplies. Today, it has over 17,000 stores and sells products from some of the country’s most-trusted manufacturers. DG stock currently trades at $215.43 as of 12:45 p.m. ET. Today, it also reported its third-quarter financials.
To begin with, net sales for the quarter increased by 3.9% to $8.5 billion. The company also posted a diluted earnings per share of $2.08. Dollar General also declared a quarterly cash dividend of $0.42 per share. The company also says that during this quarter, it has made meaningful progress in advancing its key initiatives, while continuing to successfully deliver for its customers. Furthermore, it also announced that it will be expanding internationally for the first time, with plans to open up to ten stores in Mexico by the end of fiscal 2022. All things considered, will you add DG stock to your portfolio?
Costco Wholesale Corporation
Following that, we will be taking a look at the Costco Wholesale Corporation. Overall, as the name suggests, consumers often turn to Costco when buying items wholesale. In other words, the company operates a global chain of membership-only big-box retail stores. As one of the largest retailers worldwide, Costco could be a go-to for consumers prepping amidst Omicron variant concerns.
Likewise, would investors be wise to keep track of COST stock now? Well, for one thing, the company’s shares currently trade at $528.23 as of 12:45 p.m. ET. This would be after year-to-date gains of 38%. Even with its current gains, Costco continues to power forward on the operational front. Earlier today, the retailer released its monthly sales report. It saw solid year-over-year gains of 15% in net sales and 14% in total comparable-store sales in November. Despite these growth figures falling slightly short of estimates, CNBC’s Jim Cramer still sees upside for Costco. Cramer notes that this is “nothing more than expectations getting a bit too bullish”. Could all this make COST stock a top pick in the stock market today?
Last but not least is Walmart, the world’s largest retailer. From hypermarkets and discount department stores to grocery chains, Walmart does it all. For a sense of scale, the company serves about 220 million customers per week across its global network of stores and e-commerce platforms. Given the overarching reach the company boasts in the retail scene, WMT stock could be gaining attention now. As it stands, the company’s shares are trading at $136.92 as of 12:45 p.m. ET.
Notably, like other retailers, Walmart has and continues to bolster its e-commerce operations. As of last week, it is currently working with Twitter (NYSE: TWTR) on this front. To highlight the duo recently tested Twitter’s live stream shopping platform across the Black Friday weekend. Earlier in November, news broke of the company testing fully driverless trucks for its online grocery division. All in all, Walmart seems to be firing on all cylinders now to accommodate changing consumer trends. As such, will you be keeping an eye on WMT stock?