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Looking For Retail Stocks To Buy? 1 Up More Than 1000% During The Pandemic

These retail stocks remain just fine despite the coronavirus pandemic.

Are These The Best Retail Stocks To Buy Before Friday? 

It goes without saying that most retail stocks have been badly hit due to the coronavirus pandemic. Across the globe, many brick-and-mortar stores had to close throughout March to June. Even as the world pushes forward with the reopening of the economy, it has been a rocky path so far as coronavirus cases continue to climb. Even countries previously declared ‘virus-free’ have seen some resurgence in coronavirus cases. But that doesn’t mean the best retail stocks can’t outperform the broader market.

Many investors would avoid the retail space at all costs amid the uneven reopening economy. Go ahead and call me an optimist, I believe there are still a few companies that could do well despite closure of physical stores. Not all retail stocks are created equal. If we look at Amazon (AMZN Stock Report), we know that the vast majority of its sales are derived from its e-commerce segment, which arguably very much makes it a retail play. 

Of course, many of these retailers have seen a surge in online demand. But that surge still makes up a relatively small percentage of total revenue for most traditional retailers. For instance, if we look at Nike (NKE Stock Report) or Under Armour (UA Stock Report), both have dropped 5% and 50% respectively year-to-date. Nike appears close to fully recovering from the effect of the pandemic. On the other hand, UA stocks still have to double its stock price to go back to pre-pandemic levels. Like I said, investors shouldn’t treat all retail stocks equally. With that in mind, here are two retail stocks that could be worth the addition to your portfolio.

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Top Retail Stocks To Buy Or Sell Now: Tupperware Brands Corporation

Tupperware Brands Corp. (TUP Stock Report) surprised their investors with massive earnings during the second quarter. As a result, TUP stocks have skyrocketed more than 65% on Wednesday. In fact, the company was one of the best cheap stocks to buy during the market turmoil in March. Since hitting new lows in March, TUP stocks have been climbing quietly under the radar and have soared more than 1,100%. In just a span of four months.

It is reported that the sales were 16% lower in the second quarter. And for the first half, the sales have fallen 20%. So why is TUP stock having such a massive rally? Glad you asked. As you may have noticed, the company recently has a new management team and a turnaround plan. By improving the overall operational efficiency, Tupperware was able to boost its profit during the second quarter by a lot. Tupperware reported $63.8 million in quarterly net income, which translates to $1.30 in earnings per share (EPS). Analysts were expecting a net EPS loss. So, that explains the massive rally in Tupperware stock for the past few months.

[Read More] Top 2 Pharmaceutical Stocks To Watch Before August

Top Retail Stocks To Buy Or Sell Now: Lululemon Athletica

Lululemon Athletica (LULU Stock Report) has experienced enormous growth over the years, due to its niche appeal in the athletic space. Also, the company is a more superior consumer stock to own compared to big names like Nike or Adidas. Nike and Adidas have to write off their off seasonal items, whereas Lulu’s apparel are essentially suitable for all seasons. On top of that, Lululemon has also successfully branched out to other categories. They include outerwear, lifestyle and apparel for golf. 

More importantly, Lululemon adapted well during store closures in North America and Europe. The direct-to-consumer revenue, including sales through the company’s website surged 68% year over year in the last quarter. When many companies turn to online stores to continue their offering, they would claim that the online spending has “spiked” during the pandemic. But the truth is, it still makes up only a small portion of their total sales. Unlike its industry peers, Lululemon’s e-commerce made up an astonishing 54% of total revenue in the most quarter, up from 28% in fiscal 2019. This is a testimony to the company’s resilience.

By Brett David

Brett David is a digital marketing and finance professional for nearly 10 years now and a contributing author for StockMarket.com. His passion for digital marketing and the stock market began after graduating with a B.S.B.A in business administration and finance. After completing college, he went on to becoming an entrepreneur in the marketing and finance space, which led to becoming a contributor to outlets such as ThriveGlobal.com, MarijuanaStocks.com, MarketingAgency.com and SearchEngineWatch.com.

Brett loves the ability to deliver to his readers engaging and educational content that can be easily consumed by the reader. He enjoys writing about a wide variety of companies ranging from blue-chip stocks to the undervalued small and micro cap stocks. His favorite stock market sectors today to write about are: Tech, Cannabis, Mining, Biotech, and TMT.

Brett has worked with hundreds of publicly traded companies on increasing their digital footprint and corporate outreach since 2013.

You can find Brett most of time digging through corporate filings conducting fundamental analysis or at an industry conference looking for the next big trend or company to hit the street. His digital marketing experience gives a competitive edge over other contributing authors by allowing him to see and analyze trends faster than the next person.

Brett, a South Florida native, enjoys spending time with his wife and son outdoors, and is an avid basketball and MMA fan.