The retail sector is a critical component of the global economy, encompassing a wide array of businesses that sell goods and services directly to consumers. From large multinational chains to small independent shops, this sector includes both online and brick-and-mortar stores, offering products ranging from apparel and electronics to groceries and household items. The sector is highly responsive to economic cycles, with consumer spending being a key driver.
Investing in retail stocks offers potential advantages such as capitalizing on consumer trends and economic growth. Retailers often have the ability to scale operations and expand into new markets, providing growth opportunities for investors. Many established retail companies also offer dividends, contributing to attractive total returns. However, the sector faces challenges including fierce competition, particularly from online retail giants, and vulnerability to economic downturns, which can reduce consumer spending and squeeze profit margins.
Moreover, the shift towards online shopping has forced traditional retailers to adapt quickly, leading to significant investments in technology and logistics. This transition presents both risks and opportunities, as companies that successfully navigate this change can emerge stronger, while others may struggle. Overall, investing in retail stocks requires careful consideration of these dynamics, with a focus on companies that demonstrate adaptability and strategic growth initiatives. Considering this, let’s look at two blue-chip retail stocks to watch in the stock market today.
Long-Term Retail Stocks To Watch Today
The Home Depot Inc. (HD Stock)
To start, The Home Depot Inc. (HD) is a leading home improvement retailer. Operating primarily in the United States, the company offers a wide range of building materials, home improvement products, and lawn and garden products. The company currently operates thousands of stores across North America.
Earlier this week, Home Depot announced its first quarter 2024 financial results. Getting straight into it, the retailer notched in Q1 2024 earnings of $3.63 per share, with revenue of $36.42 billion. This was compared to analysts’ consensus estimates for the quarter which were an EPS of $3.61, with revenue estimates of $36.69 billion.
Looking at the past year of trading, shares of HD stock have moved higher by 22.26%. While, during Thursday’s lunchtime trading session, Home Depot stock is red on the day thus far by 0.96%, trading at $345.35 a share.
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Walmart (WMT Stock)
Second, Walmart Inc. (WMT) is one of the world’s largest retailers. The company operates a chain of hypermarkets, discount department stores, and grocery stores. Additionally, Walmart offers a broad inventory across a wide range of products. This includes groceries, apparel, electronics, and household items.
Just today, Walmart announced better-than-expected its Q1 2025 financial results. In detail, the company notched in earnings of $0.60 per share versus estimates of $0.52 per share. Additionally, Walmart posted revenue for the quarter of $161.51 billion. This is compared to estimates of $159.50 billion for the quarter. Moreover, e-commerce sales rose by 22% on a year-over-year basis.
In the last year of trading, shares of Walmart stock have gained by 27.19%. Meanwhile, following this earnings release, WMT stock is trading higher on Thursday afternoon, up 6.13%, trading at $63.50 a share.
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