4 Top Retail Stocks To Watch In The Stock Market Today
Retail stocks are among the major standouts in the stock market during earnings season this week. This is understandable as some of the biggest names in the scene are posting their latest quarterly updates now. Overall, this is not all that surprising after considering that these numbers are from the holiday season. Even so, some would argue that the momentum in retail businesses now may also be part of the economic recovery. As most would know, the economy continues to roar back to life. Another key piece of evidence supporting this would be encouraging job market readings. Just earlier today, weekly initial jobless claims fell to a year-to-date low of 215,000. This is better than Wall Street estimates of 225,000.
Regarding retail firm earnings, Best Buy (NYSE: BBY) would be an interesting case to consider now. For starters, the company raked in a total revenue of $16.37 billion alongside earnings of $2.73 per share. This is versus consensus forecasts of $16.6 billion and $2.73 respectively. Despite Best Buy’s lackluster results at face value, BBY stock is gaining attention in the stock market today. Notably, its plans to launch new membership programs and focus on long-term growth appear to be the cause for this. Also, other retailers such as Nordstrom (NYSE: JWN) are also steadily recovering to pre-pandemic levels on the revenue front. With all this activity among retail stocks now, could one of these firms be worth watching?
Retail Stocks To Watch In March 2022
- The Kroger Company (NYSE: KR)
- BJ’s Wholesale Club Holdings Inc. (NYSE: BJ)
- Target Corporation (NYSE: TGT)
- Walmart Inc. (NYSE: WMT)
Kroger is a retailer that operates supermarkets and multi-department stores throughout the U.S. Across its portfolio of companies, it has nearly half a million associates that serve over 11 million customers daily through its seamless shopping experience under a variety of banner names. In fact, it is one of the largest supermarket chains in the U.S. by revenue and the second-largest general retailer in the country. KR stock is up by over 5% on today’s opening bell after it reported its fourth-quarter and full-year financials.
Diving in, identical sales without fuel increased by 4% year-over-year. Digital sales more than doubled in a two-year stack. The company also reported an earnings per share of $0.75 for the quarter. CEO Rodney McMullen had this to say, “As we look to 2022, we expect the momentum in our business to continue and have confidence in our ability to navigate a rapidly changing operating environment. We are leveraging technology, innovation, and our competitive moats to build lasting competitive advantages. Our balanced model is allowing us to deliver for shareholders, invest in our associates, continue to provide fresh affordable food to our customers, and uplift our communities.” All things considered, is KR stock worth investing in right now?
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BJ’s Wholesale Club Holdings Inc.
Following that, we have BJ’s, a membership-only warehouse club chain that operates across the U.S. as well. The company operates over 200 clubs and over 150 BJ’s gas locations in 17 states. It continues to deliver significant value to its members, consistently offering 25% or more savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. The company has over 6 million members and over $15.1 billion in annual sales. Today, the company also reported its fourth-quarter and fiscal 2021 financials.
Firstly, total revenues for the quarter were $4.35 billion, increasing by 10.4% year-over-year. Total comparable club sales increased by 8.8% compared to the year earlier. It also reported earnings per diluted share of $0.78 for the quarter, reflecting a 13% increase. Furthermore, the company announced an agreement to acquire four distribution centers and related private transportation fleets from Burris Logistics. This acquisition is expected to bring an end-to-end perishable supply chain in-house. The company also says that it remains focused on its strategic priorities to drive long-term growth, attracting and retaining high-quality members. With that being said, would you be watching BJ stock this month?
Target Corporation is another retailer that is making waves this week. The company is also one of the largest retailers in the U.S. and a component of the S&P 500. It has almost 2,000 stores that serve millions across the country. Target also owns Shipt and Roundel, with Shipt being a delivery service company while Roundel is a media company. Earlier this week, the company announced its fourth-quarter financials.
Comparable sales for the quarter grew by 9.9% year-over-year. More than 95% of Target’s fourth-quarter sales were fulfilled by its stores. The company also reported an all-time high GAAP earnings per share of $3.21 despite significant investments in team, price, and inventory availability. For its fiscal year 2022, the company expects low- to mid-single-digit revenue growth, an operating margin rate of 8% or higher. It also expects quarterly year-over-year profit performance to generally improve as the year progresses. For these reasons, is TGT stock worth adding to your watchlist?
When discussing the top retail stocks, Walmart would be another major player to consider in the scene now. As the world’s largest retailer, Walmart brings plenty to the table with its massive portfolio. From discount department stores to hypermarkets and grocery stores, the company does it all. For a sense of scale, the company currently operates a network of 10,500 stores spanning 24 countries. This alongside its e-commerce services continues to make Walmart a go-to for consumers now.
Speaking of catering to consumers, the company is launching a new virtual fitting room service today. This comes in the form of Walmart’s Choose My Model (CMM) feature. Through CMM, shoppers have access to a high-end software solution that helps them with picking out clothes. It accomplishes this by letting them choose models with similar body structures wearing clothes in Walmart’s catalog. Ideally, this would help consumers make more comprehensive choices when shopping for clothing online. As such, would you be keeping an eye on WMT stock now?