5 Top Retail Stocks To Check Out In The Stock Market Today
With a rough start to the trading week, some may be looking around to buy the dips in the stock market. Arguably, there may be investors who believe retail stocks could be a viable play in this scenario. This is largely thanks to the current earnings season. Seeing that retailers are starting to report their earnings from the holiday season, investors may be keen on seeing how they will be performing. Because of this, some of the top retail stocks could be gaining attention now.
As a matter of fact, some retail stocks have already started to pique investor interest. Just yesterday, talks about a potential takeover of Kohl’s Corporation (NYSE: KSS) sent the company’s stock rising by over 36% during intraday trading. Moreover, major players in the retail scene such as Walmart (NYSE: WMT) are looking to expand their markets as well. Just last week, reports said the firm is looking to enter the metaverse space with non-fungible tokens and its own cryptocurrency. With all these developments surrounding the retail industry, here are the top retail stocks to keep an eye on in the stock market today.
Retail Stocks To Buy [Or Sell] This Week
- Urban Outfitters Inc. (NASDAQ: URBN)
- Macy’s Inc. (NYSE: M)
- Under Armour Inc. (NYSE: UAA)
- Costco Wholesale Corporation (NASDAQ: COST)
- Nike Inc. (NYSE: NKE)
Starting off our list is Urban Outfitters, or URBN for short. In short, the company is a leading lifestyle products and services company. Its portfolio consists of global brands such as Anthropologie, Free People, and Urban Outfitters among others. URBN’s primary target market are young adults with a mix of women’s and men’s fashion apparel, footwear, and wellness products. According to the company, it operates over 650 stores across the U.S, Canada, and Europe. Besides that, URBN provides shoppers with a digital retail experience through its global website and catalogs.
Two weeks ago, the company reported its sales for the holiday season. The figures are in comparison with 2019’s figures for a more meaningful representation, given the impact of the pandemic in 2020. URBN reported an increase in net sales by 14.6% for the two months ended December 31, 2021. Moreover, comparable retail segment net sales increased by 14%. This was primarily driven by strong growth in digital channel sales which partially offset negative retail store sales. On top of that, the company also opened a total of 56 new retail locations. Given the strong sales, would you consider buying URBN stock?
Next up is Macy’s, one of the largest omnichannel retailers in the U.S today. For the most part, the company operates through its three flagship brands. These include Macy’s, Bloomingdale’s, and Bluemercury. Currently, Macy’s caters to customers through its e-commerce, mobile app, and national retail store network. On Monday, M stock skyrocketed by 18%, which could have been the spillover effects from the speculative Kohl’s takeover.
In November, Macy’s reported quarterly results which exceeded expectations. For starters, comparable sales were up 37.2% on an owned basis and up 35.6% on an owned-plus-licensed basis compared to 2020. When compared against the pre-pandemic backdrop in 2019, sales were up 8.9% and 8.7% respectively. Alongside this, the company added 4.4 million new customers, a 28% increase over 2019. On top of that, Macy’s announced plans to launch a curated digital marketplace. This new platform aims to expand the company’s offerings in existing categories and brands. Accordingly, it plans to do so by carefully selecting third-party merchants to sell their products on macys.com and bloomingdales.com. All things considered, would M stock be a buy for you?
Under Armour is a company that manufactures footwear, sports, and casual apparel. Notably, the company makes its products with highly innovative materials and processes. For instance, its thread texturing techniques and polymer development allow for products that perform better and are generally more durable. Its products are sold across the world and worn by consumers ranging from active lifestyle consumers to professional athletes.
Last week, Citi (NYSE: C) upgraded UAA stock to a Buy rating from Neutral. Citi analyst Paul Lejuez called Under Armour an attractive play in the athletic wear space that is hitting its stride in the EMEA and APAC regions. Lejuez said, “UAA is emerging from the pandemic in a much stronger position in North America with inventory clean, distribution rationalized, the brand identity more clearly defined, and with its product assortment in good shape.” Looking ahead, Citi sees more room for Under Armour’s EBIT margin to improve. The analyst also set a price target of $29 on UAA stock. Given the upgrade, would you be watching UAA stock?
Membership-only big-box retail store Costco needs little introduction. After all, it is the go-to store when consumers wish to buy items in bulk. For the most part, the company has been doing rather well amidst the pandemic. This is likely a result of customers stocking up more than usual to cut down on grocery trips. Costco sells a variety of products ranging from dry food and sundries to consumer durables to fresh food. In fact, the average Costco warehouse is approximately 146,000 square feet.
Last month, the company announced its first-quarter fiscal 2022 earnings. Revenue was $50.3 billion, an increase of 16% over the $43.2 billion from the year prior. Moving on, net income for the quarter was $1.3 billion, a year-over-year increase of over 13% from $1.1 billion. Diluted earnings per share were $2.98, a 13.74% increase from $2.62. Seeing that Costco continues to brave through the pandemic, will you be investing in COST stock?
Last on our list is sportswear giant Nike. The multinational corporation designs and sells athletic footwear, apparel, equipment, and services. It is one of the most valuable sports brands in the world. Under Nike are brands such as Converse and Hurley. Nike also acquired virtual sneakers and collectibles firm RTFKT as it taps into the growing metaverse space.
Last December, Nike reported its financial results for the past quarter. Accordingly, total revenue was $11.4 billion, up by 1% compared to the year before. Most of its revenue was from Nike brand sales itself, comprising $10.8 billion. Additionally, Nike brand digital sales increased by 12%, led by a 40% growth in North America. Net income for the quarter was $1.3 billion, up 7% compared to the year prior. Considering all the figures, does NKE stock deserve a spot on your watchlist?
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