Are These Retail Stocks The Best Stocks To Invest In Right Now?
Investors looking for retail stocks in the stock market today may be wondering, “is now is the right time to buy stocks?” The retail industry has been under pressure in recent years as consumers move away from brick-and-mortar stores and toward online shopping. However, there are reasons to believe that retail stocks may be due for a rebound. For one thing, many retail companies have been investing heavily in their online presence, and they are starting to see results. This is evident with retail companies like Walmart Inc. (NYSE: WMT). According to Statista.com, in 2022, Walmart U.S. had eCommerce sales amounting to approximately $47.8 billion U.S. dollars. This reflects an increase of about 11% versus 2021’s figure. Moreover, in the company’s most recent Q2 2023 financial results, Walmart posted a 12% year-over-year increase in U.S. e-commerce sales.
In addition, consumer spending is still relatively strong given the macroeconomic environment we’re currently facing. This is giving consumers more confidence to spend, which bodes well for retail stocks. As always, it is important to do your own research before making any investment decisions. But for investors who are bullish on the retail sector, there may be opportunities to buy retail stocks at attractive prices. With that, here are three top retail stocks to watch as we kick off September 2022.
Retail Stocks To Invest In [Or Avoid] Right Now
Lululemon Athletica (LULU Stock)
First up, Lululemon Athletica (LULU) is a Canadian technical athletic apparel, footwear, and accessories company. In brief, the company sells yoga pants, athletic clothing, footwear, and other workout gear. Lululemon is headquartered in Vancouver, British Columbia, and has stores across the globe. The majority of their retail locations are in the United States, Canada, Australia, New Zealand, and the United Kingdom. In July the company announced it will be increasing its footprint in Europe. Specifically, they will be launching new retail locations in Spain.
What’s more, the company is set to release its most recent quarterly financial results Thursday after the market closes. Meanwhile, let’s quickly recap their previous quarter’s performance. Diving in, Lululemon Athletica reported Q1 2022 earnings per share of $1.48 per share, with revenue of $1.6 billion. In that same report, the company gave guidance for Q2 2022. The company said it estimates second-quarter 2022 earnings in the range of $1.82 to $1.87 per share. Along with that, the LULU also said they project revenue for Q2 2022 of $1.75 billion to $1.775 billion. For context, Wall Street’s analysts’ consensus estimates are earnings of $1.74 per share, and revenue of $1.171 billion for the quarter ending July 31, 2022.
Year-to-date shares of LULU stock are down over 25%. Meanwhile, on Thursday afternoon, LULU stock has fallen another 3.59% and is currently trading at $289.18 per share. With this, will you be tuning in after the market closes to see how LULU did in its most recent quarter?
Nike (NKE Stock)
Next, Nike (NKE) is an American multinational company that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. For a sense of scale, Nike is the world’s largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment. The company also produces a wide range of products, including shoes for track and field, baseball, ice hockey, tennis, soccer, lacrosse, basketball, and more. Just this month, NKE reported its Board Of Directors has declared a quarterly cash dividend of $0.305 per share. As it stands, the company has a current annual dividend yield of 1.16%.
Furthermore, this week, the retail giant announced it will release its first quarter fiscal 2023 earnings on Thursday, September 29, 2022, after the market close. Back in June, NKE reported its fiscal 2022 Q4 and full-year results. To recap, the company reported earnings per share of $0.90, with revenue of $12.2 billion for Q4 2022.
What’s more, the company said it estimates first-quarter revenue of approximately $12.23 billion. This is compared to the current consensus estimates of $12.88 billion for Q1 2023. Year-to-date shares of NKE stock are down over 36% and currently trade at $105.18 as of Thursday’s afternoon trading session. Given its current market value, do you think NKE stock is a good value buy for your portfolio right now?
Target (TGT Stock)
Following that, Target Corporation (TGT) is an American retail corporation. Currently, Target Corporation is the seventh-largest retailer in the United States and is a component of the S&P 500 Index. The company operates Target stores and Target.com. For a sense of scale, currently, Target has nearly 2,000 Target stores. Today, investors who own Target stock enjoy an annual dividend yield of 2.67%.
Moving on, in August the company reported a miss for its second quarter 2022 financial results. Specifically, Target reported earnings per share of $0.39 on revenue of $26.0 billion. This was weaker-than-expected from the consensus estimates of $0.71 earnings per share, and revenue of $26.1 billion. In addition, the company said that it continues to estimate a fiscal 2023 revenue between the range of $107.1 billion to $112.4 billion.
This remains in line with the current analysts’ consensus revenue estimates of $109.99 billion for 2023. Similar to LULU, and NKE, shares of TGT stock have been beaten down by over 30% in the stock market in 2022. Though, during Thursday’s afternoon trading session, Target stock is up 1.07% and is trading at $162.08 a share. Given this information, do you think TGT is a good retail stock to add to your radar this month?