Are these 2 top retail stocks on your July watchlist?
Most retail stocks fell in share price when the economic crisis began. Now, many top retail stocks are making a comeback. Retail locations are starting to open more causing consumers to feel more safe returning to them. It’s still uncertain when all locations will be open, but many states are entering phase 4 of reopening.
Even when retail locations have reopened, sales are down for many companies. This means currently many retail companies are still struggling. At the same time places like supermarkets and retail locations that did not close saw profits rise. This is something that companies like Kroger (KR stock report) and Walmart (WMT stock report) benefitted from.
Retail had been losing business to e-commerce for a long time. But retail locations will always exist as there is a desire to buy in person. It is believed that there will be a retail boom when the virus situation is stabilized. This has investors looking at potential retail stocks to buy. Now it is time to look at two retail stocks that are rising in the market.
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Top Retail Stock To Buy [Or Sell] Before July 2020: Foot Locker
One retail stock that has been rising back up is Foot Locker Inc. (FL stock report). Foot Locker is a retail shoe store with locations in many countries. In 2017 it was reported that this retail company has 3,363 store locations across the globe. Foot Locker is trying to prevent itself from going bankrupt during the economic crisis. It is slowly reopening stores but that doesn’t mean that consumers are going. What’s the point if you can’t try on shoes and such? This is why consumers have been staying away from many retail stores.
FL stock fell as much as 55% in February to March. This was due to all of its locations closing indefinitely. FL stock price reached a low of around $18 a share. This is very low compares to FL stock pre-pandemic price of $40 a share. As of June 23rd, FL stock price is around $29 a share. While FL stock is not near its early 2020 price it is still on the rise back up.
Currently it is unsure when Foot Locker will see its financials go back up. The company could end up filing for bankruptcy if things continue harshly for this retail stock. While investors are still interested to see where FL stock goes in the future, this still remains a retail stock to watch.
Top Retail Stock To Buy [Or Sell] Before July 2020: DICK’S Sporting Goods
The second retail stock we must discuss is DICK’S Sporting Goods Inc. (DKS stock report). Dick’s is a sporting goods retail company and was founded in 1948. The company has grown to have 850 stores worldwide. In addition to the stores, Dick’s employs 30,000 people. It is the largest sporting goods retailer in North America. Dick’s is also a Fortune 500 company. DICK’S was forced to close the doors to all of its locations when the pandemic began. This had a grand effect on its financials.
DKS stock price was around $43 a share before the stock market crash of 2020. This caused DKS stock to fall as low as $17 a share. This 60% decrease of DKS stock price was bad for investors. Many lost money during the fall of DKS stock. As of June 23rd though, DKS stock price has risen to $41.20 a share on average. This means that DKS stock is very close to its price before the economic fall. Do you think DKS stock price will continue to rise? It is possible due to the reopening of stores across the world.
These two retail stocks are recovering despite the state of the economy. This may prove that people will begin shopping at retail stores more after reopening. As previously mentioned, places are starting to enter phase 4 in the United States. This could include colleges reopening, as well as camps. DKS stock and FL stock are two of many retail stocks to watch due to their recent momentum in the market.