November Is Here, Which Retail Stocks Will Investors Bet On?
Retail stocks have been a very poor performing sector of the stock market in 2020. This does not mean that every retail stock has been struggling though. For example, Target (TGT Stock Report) and Walmart (WMT Stock Report) have been able to perform extremely well this year. But that is because there is an exception. These types of retail stores stayed open in the pandemic environment, and consumers have used them as a way to do grocery shopping, and get essential supplies. But other types of retail companies have been struggling.
These include companies that sell clothing, sportswear, cosmetics, and more. E-commerce has picked up sure, but a large amount of these companies relied on retail sales to stay afloat in this environment. But what about now in November? Well, many top retail stocks to watch are back on the rise after being down for so long. It is always important to look at the recent news and financials that come out from retail companies if you are looking to invest in the sector. Let’s take a dive into three top retail stocks to buy or sell as we start the month of November.
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Top Retail Stocks To Buy [Or Sell] In November: Macy’s Inc.
The first company on this list of retail stocks to watch is Macy’s Inc. (M Stock Report). Macy’s is a retail company that has become a giant in the sector. To date, the company has more than 552 locations all over the world. It sells items such as clothing, perfume, shoes, and more. These massive department stores are in malls all over the place. This has got Macy’s to the point of being at number 118 on the Fortune 500 list of companies. M stock has been struggling despite the company’s great success in the past. The pandemic has had negative effects on M stock price. So let’s look at the recent news and financials from this large retail corporation.
Well, Macy’s has announced that it has closed at least of its two mall anchor stores to turn into fulfillment centers. This holiday season is expected to be much more online than in person. This includes Black Friday. It is unknown what stores will be open this black Friday. But it is largely accepted by most companies that e-commerce will be the most mass part of their sales this holiday season. So investors may be betting on Macy’s ahead of this.
On November 3rd, M stock price is up 7.73% a share. Only time will tell if these analysts betting on Macy’s are making the right choice. Many retail companies have a positive outlook for the holiday season. It will be interesting to see how Macy’s is able to perform against its competitors this season. That is why M stock has made it to this list of the 3 top retail stocks to buy or sell in November.
Top Retail Stocks To Buy [Or Sell] In November: Bed Bath & Beyond Inc.
Next up on this list of the 3 top retail stocks to buy or sell in November is Bed Bath & Beyond Inc. (BBBY Stock Report). Bed Bath & Beyond is a retail store chain that sells domestics merchandise. This includes items such as furniture, bedding, houseware, kitchenware, and a lot more. It currently has more than 1500 stores across the world, 976 of which are located in North America. In addition to its flagship stores, it operates as World Market, Cost Plus, and Buy Buy Baby as well. It also has other companies as subsidiaries that bring in revenue to the large corporation. Let’s take a dive into the recent news from this retail company and BBBY stock.
Well, last week BBBY stock price crashed more than 22% lower. But after positive second-quarter reports, things may be changing for the company. It reported that its comparable-store sales grew 6% year over year, against analyst estimates of a negative 2.1%. Its earnings per share went up 47% to $0.50 a share. Bed Bath & Beyond’s second-quarter sales were $2.69 billion after experiencing digital sales growth of 89% in the quarter. Despite the crash of its stock price that followed, BBBY stock is back up 1.41% on November 3rd. This is another retail company that can be greatly affected by the upcoming holiday season.
With its digital sales growing 89%, it can be expected that this number could grow during the holidays. As of November 4th, BBBY stock price is at $21.35 a share. Now it is time to see how the company performs to close out the 2020 year, which will be telling investors if they should be in or out. That is why the company has made this list of the 3 top retail stocks to buy or sell in November.
Top Retail Stocks To Buy [Or Sell] In November: Kohl’s Corporation
The final company on this list of the 3 top retail stocks to buy or sell in November is Kohl’s Corporation (KSS Stock Report). Kohl’s is the largest department store chain in the United States. It actively owns more than 1158 locations in 49 of the 50 states. They are currently the 23rd largest retailer in all of the United States. It is also listed on the Fortune 500 at number 165. Let’s check out what has come from this retail company recently.
Throughout 2020, KSS stock has fallen but it seems to be going back up now. Well, recently the company gifted $5 million to nonprofits for the holiday season to encourage consumers to do the same.
The company is gearing up for this upcoming holiday shopping season, and this large donation has certainly been seen by many consumers. Kohl’s is a massive retail chain but has increased e-commerce sales during 2020. So it will be interesting to see how Kohl’s competes with the other company’s in this niche when the upcoming holiday season arrives.