Here Are Three Top Retail Stocks To Check Out Right Now
Retail stocks are a type of investment that can provide investors with exposure to the retail sector within the stock market. Retail stocks can be purchased through a variety of different channels, including online stockbrokers, retail mutual funds, and retail ETFs. While retail stocks can provide investors with the potential for growth, they also come with risks, such as the risk of retail bankruptcy. As such, retail stocks are not suitable for all investors. Before investing in retail stocks, it is important to research the sector and individual companies in order to understand the risks involved.
Retail stocks would be in an interesting position in the stock market today. Overall, as investors await the latest Federal Reserve rate hike decision on Wednesday, retail stocks could be in focus. Though some would debate that the gains in stocks now are because of market volatility, investors may not want to count retail stocks out just yet. Why? Well, first off, the industry continues to cater to consumers all around. All in all, there seems to be no shortage of excitement in the retail sector right now. With that, check out these three top retail stocks in the stock market today.
Retail Stocks To Watch Right Now
- Walmart Inc. (NYSE: WMT)
- Dollar Tree (NASDAQ: DLTR)
- Target (NYSE: TGT)
Walmart (NYSE: WMT)
To kick this list off, we have retail giant Walmart (WMT). The company aims to help people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. In fact, weekly, approximately 230 million customers and members visit more than 10,500 stores. Despite being one of the largest brick-and-mortar retailers in the world, the company is also one of the fastest-growing and most dynamic e-commerce companies. Notably, its main website, Walmart.com gets up to 100 million unique visitors each month.
WMT stock is in the headlines after hours on Monday as shares slid over 9%. This comes after the company released an update late Monday afternoon, revising its outlook for profit for the second-quarter and full-year. The company cut guidance among lagging inflation and inventory concerns. The Arkansas-based retail behemoth now estimates operating income for the second quarter and full year to fall 13 to 14% and 11 to 13%, respectively. Meanwhile, adjusted earnings per share are now anticipated to drop to 8 to 9% and 11 to 13%, over the same time period. All while, Walmart had its estimated EPS to be “flat to up slightly” for Q2 and to fall just 1% when it reported back in May.
“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars. We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.” said Doug McMillon, Walmart Inc. president and chief executive officer. All in all, is now a good opportunity to buy shares of WMT stock at a discount?
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Dollar Tree (NASDAQ: DLTR)
Next up, let’s take a look at Dollar Tree (DLTR). The company is a leading operator of discount variety stores. They currently have over 16,000 stores across North America and is supported by a coast-to-coast logistics network with more than 193,000 associates. Also, Dollar Tree is one of the fastest-growing retailers in the United States. They offer an assortment of merchandise for the whole family. This ranges from household items to health, wellness, and brand-name foods. Shares of DLTR stock closed Monday’s extended trading session down over 3% at $161.90 a share.
Back in May, DLTR reported its results for the first quarter of the year. In it, the company reported net sales of $6.9 billion. This reflects a jump from $6.48 billion it reported in 2021, and is up by 6.5% year-over-year. Its comparable store sales also showed growth, increasing by over 11%. As for its profits, Dollar Tree posted a record EPS of $2.37, increasing by 48.1% year-over-year. CEO Michael Witynski stated, “Importantly, other key strategic initiatives, including the expansion of the $3 and $5 Plus assortment in Dollar Tree stores, as well as our Combo Stores and H2 Renovations at Family Dollar are working.” With that, does DLTR stock deserve a spot on your watchlist right now?
Target (NYSE: TGT)
Following up on that, we have Target (TGT). The company is a general merchandise retailer that sells products through its retail stores and e-commerce channels. Its product category includes accessories and apparel, household essentials and beauty, food and beverage, home furnishing, and decor. In May, the board of directors declared a quarterly dividend of $1.08 per common share, a 20% increase from $0.90 in the quarter prior. This is also Target’s 220th consecutive dividend paid since October 1967. This year, Target is on pace to deliver its 51st consecutive year in which the company increased its annual dividend.
Moving along, shares of TGT stock are down after hours on Monday. This comes as Walmart revised its outlook for its second quarter, sending shockwaves across top retailers across the industry. TGT closed Monday’s extended trading session down over 5% at $149.54 a share. All in all, will you be watching TGT stock this week?
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