Will These Top Retail Stocks Continue To Move Higher As The Economy Recovers?
Retail stocks have generally been down in the market. The coronavirus pandemic that is occurring throughout the world affected this industry rather harshly. Most retail stores had to close down for a while at some point. Many retail stores are still closed with seemingly no reopening in sight. When news regarding a coronavirus vaccine is released to the public, top retail stocks to watch can go higher in the share price. If a company can reopen stores and begin to gain traction again, it can have the same effect.
The future of the economy is still volatile at the moment. E-commerce is standing on top of retail because of the number of people staying home. For many investors, it can be confusing to figure out which retail stocks are the best. There are many retail stocks that are on the road to recovery or have fully recovered such as Walmart (WMT Stock Report) and Costco Wholesale Corporation (COST Stock Report). So today we are going to have a look at 3 trending retail stocks to watch.
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Top Retail Stocks To Watch In September 2020: Best Buy
The first retail stock to watch is Best Buy Co., Inc. (BBY Stock Report). Best Buy is a retail company with a focus on electronics. The store sells things like cell phones, speakers, computers, and much more. Best Buy is currently listed at number 75 on the Fortune 500. On August 25th, Best Buy released its second-quarter results. In these results, Best Buy said its income was $432 million. This is more than 81% higher year over year.
Although Best Buy has dealt with many struggles in 2020, it seems to have its financials climbing. At the start of 2020, BBY stock was at $82 a share on average. That was until the pandemic struck and BBY stock price fell to around $50 a share. Since then, BBY stock has been able to recover. As of August 25th, BBY stock price is at $111 a share. This is 122% higher than BBY stock was back in February. If Best Buy can keep up its momentum it will see a great benefit from it. BBY stock price will likely move once again when its third-quarter results are released.
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Top Retail Stocks To Watch In September 2020: The Gap Inc.
The next retail stock to watch is The Gap Inc. (GPS Stock Report) stock report due to its potential to recover. The Gap is a retail company that sells clothing in its many store locations. Currently, Gap operates 3,727 stores around the world. One contributor to Gap’s stock price increasing is a recent deal with Kanye West’s brand, Yeezy. Kanye West partnered with Gap to release clothing beginning next year. This news was very good for Gap because of the scale of the Yeezy brand. Kanye’s clothing company did so much for Adidas AG (ADDYY Stock Report) with its partners that Gap saw the potential. That deal caused a 15% increase in GPS stock back in June.
After the deal GPS stock price was around $14.20 a share. Now as of August 25th, GPS stock is at $16.85 a share on average. Gap has managed to have its sales start to increase. Gap is releasing its second-quarter results on August 27th, which will be telling for the future of GPS stock price. That is why GPS stock is a retail stock to watch.
Top Retail Stocks To Watch In September 2020: Kohl’s
The last retail stock to watch is Kohl’s Corporation (KSS Stock Report) due to its recent uptick. Kohl’s is a retail company that operates department stores. Kohl’s is the largest department store chain in the US. The company owns more than 1158 locations in 49 states. Kohl’s is the 23rd largest retailer in the US. The company is currently listed as number 165 on the Fortune 500 list of companies. Kohl’s recently released second-quarter earnings that beat estimates.
KSS stock fell from this but has been climbing once again. On August 21st, the KSS stock price was at $18 a share on average. On August 24th, KSS stock jumped up to $20.60 a share. This is due to positive expectations from investors for the future. If Kohl’s can release promising third-quarter results, KSS stock could rise even more. KSS stock is not near full recovery in 2020 yet.
The lack of recovery is due to the struggles of the retail sector. As you’ve seen some retail stocks can recover and go to new heights, while others are trying. That is why GPS stock, KSS stock, and BBY stock are retail stocks to watch in September 2020. The future of these retail stocks will be defined by the future of the economy.