Are These The Best Retail Stocks To Buy During The Russia-Ukraine War?
As we kick off the week, this could be an exciting week for retail stocks in the stock market. Retail giants such as Costco (NASDAQ: COST), Best Buy (NYSE: BBY), and many more will be providing their financial reports this week. And, there are reasons for optimism among investors when it comes to these household names. On one hand, Costco has a history of providing its net sales update every month. The company reported net sales of $15.76 billion for the retail month of January, indicating an increase of 15.5% from the same period last year. On another hand, it will be interesting to see if Best Buy could maintain its momentum from its previous quarter, where it reported better-than-expected earnings.
Overall, the industry is showing signs of recovery from the pandemic. Despite the recent Omicron wave, consumers are still keen on shopping. Earlier this month, the Commerce Department reported that retail sales rose 3.8% in January, ahead of estimates of 2.1%. It’s also worth noting that many companies have taken their presence online and made shopping easier than ever before. Hence, those that jumped on the e-commerce bandwagon early would have thrived during the pandemic. With all said and done, let’s look at a list of the top retail stocks in the stock market today.
Retail Stocks To Watch This Week
- Target Corporation (NYSE: TGT)
- Victoria’s Secret & Co. (NYSE: VSCO)
- The Kroger Co. (NYSE: KR)
- Lowe’s Companies, Inc. (NYSE: LOW)
Target
Among the top names in the industry reporting their earnings this week would be Target. Essentially, the company is a general merchandise retailer that operates through its stores and digital channels. Its stores offer a range of food assortments that includes perishables, dry grocery, dairy, and frozen items. Customers can also assess these items in their digital channels. Not to mention, Target also has an exceptional record in paying out dividends to its shareholders. In January, it declared a quarterly dividend of 90 cents per common share, the 218th consecutive dividend since it went public in 1967.
Furthermore, the company unveiled last week its plans of continuing the enhancement of its same-day pickup services in fall 2022. So, Target will begin testing the option for guests in select markets to add a Starbucks (NASDAQ: SBUX) order or make a return within Target’s app. Also, it will expand its “backup item” functionally in more categories to allow guests to pick up everything on their lists. Safe to say, these latest enhancements would build on its strategy of using the company’s approximately 2,000 stores as fulfillment hubs and powering its suite of contactless same-day services. For these reasons, would you consider adding TGT stock to your watchlist?
Victoria’s Secret
Next up, Victoria’s Secret is another retailer that is reporting its earnings this week. Those who are familiar with the company would know that the company is renowned for its women’s intimate apparel, personal care, and beauty products. Its products range from fragrances to sleepwear and even swimwear. With approximately 1,400 stores worldwide, it should not be surprising that investors often rank the company as one of the leading names within the industry. Despite trading sideways for most of the past year, VSCO stock has still risen more than 30% during the period.
Now, Victoria’s Secret is also a company that rarely rests on its laurels. On Valentine’s day this year, the company announced the debut of its new collection of bras and panties, Love Cloud. This new collection will be centered around all-day comfort. Inspired to feel light as a cloud, this collection consists of smoothing technology and adjustable straps for all-day comfort. Besides that, it also went into partnership with Regina Miracle International in January. Under this, Victoria’s Secret and Regina Miracle have formed a joint venture to operate all Victoria’s Secret stores and the related online business in China. Together, both companies aim to grow the China business through joint investment in product development, distribution, and marketing. All things considered, would you invest in VSCO stock ahead of its earnings report?
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Kroger
Another top retailer to watch right now would be Kroger. For those unaware, the company is a food retailing company that operates supermarkets and multi-department stores throughout the U.S. It also manufactures and processes some of the food for sale in its supermarkets. This is also a company that emphasizes value, convenience and making customers’ lives simpler. Impressively, KR stock has been on bullish momentum. It has steadily risen more than 40% over the past year.
Last week, Kroger and Loop launched a new way for customers to shop, offering a selection of products in reusable packaging. For those unaware, Loop is a circular reuse platform developed by TerraCycle. Thus, customers can now walk into any one of the 25 Kroger-owned Fred Meyer stores in the Portland metro area and purchase more than 20 products that are packaged in reusable containers. Again, this goes to show Kroger’s commitment to achieving lasting positive change for billions of people and the planet. With that said, would you consider investing in the future of KR stock?
Lowe’s
To sum up the list, we have the home improvement company, Lowe’s. The company offers a range of products for maintenance, repair, and decorating. Consumers can also access its products and services through its Websites and mobile applications. Whereby, there will be online product information, customer ratings and reviews, and other vital information. Unlike the other entries, Lowe’s has already reported its fourth quarter and full-year 2021 earnings last week.
For starters, its net earnings came in at $1.2 billion and diluted earnings per share was $1.78, compared to $978 million and $1.32 in the prior year’s quarter. Meanwhile, its total revenue increased to $21.3 billion, beating analysts’ estimates of $20.31 billion. In addition, the company also announced a partnership with Instacart to pilot same-day delivery in as fast as one hour. For now, this new feature will be available in Boston and Charlotte, with plans of expansion in the coming months. Overall, it looks like Lowe’s is trending in the right direction as it continues to innovate in a competitive industry. Given these developments, should you be keeping a close tab on LOW stock right now?
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