Should Investors Be Watching These Top Retail Stocks In The Stock Market Now?
As we kick off September, retail stocks have and continue to gain traction in the stock market today. Notably, this would be thanks to a series of stellar earnings figures from retailers across the board. This is apparent in the likes of Gap (NYSE: GPS), Best Buy (NYSE: BBY), and PVH (NYSE: PVH). For starters, both Gap and Best Buy smashed analyst estimates in their second-quarter fiscals reported last month. Gap posted an earnings per share (EPS) of $0.70 versus projections of $0.46 while Best Buy saw an EPS of $2.98 against estimates of $1.85.
Earlier today, apparel retailer PVH posted solid figures in its latest fiscal quarter as well. Namely, the company reported an EPS of $2.72, more than double of Wall Streets’ guess of $1.20. CEO Stefan Larsson cites the ongoing momentum of the company’s Calvin Klein and Tommy Hilfiger brands internationally as key growth drivers. As a result of all this, PVH appears confident of its current trajectory, raising its full-year revenue forecast. More importantly, PVH is now sitting on gains of over 280% since its pandemic era low.
Impressive earnings figures aside, the retail industry is not resting on its laurels just yet. For instance, we could look at the likes of Walmart (NYSE: WMT). Earlier today, the retail giant announced plans to hire 20,000 employees to account for increased holiday shopping season demands. The likes of which will be positioned across the company’s massive distribution network nationwide. By and large, the retail industry continues to press forward along with the broader stock market now. Should you be eager to ride this momentum, here are three notable retail stocks to know.
Best Retail Stocks To Watch This Month
- Home Depot Inc. (NYSE: HD)
- JD.com Inc. (NASDAQ: JD)
- Costco Wholesale Corporation (NASDAQ: COST)
The Home Depot
First up, we have Home Depot, the world’s largest home improvement retailer. Impressively, it has over 500,000 associates and 2,300 stores in the U.S., Canada, and Mexico. Its typical store today averages 105,000 square feet of indoor retail space. It also has a comprehensive e-commerce business that offers more than 1 million products for both DIY customers and professional contractors. HD stock currently trades at $322.48 apiece as of 1:50 p.m. ET.
On August 17, 2021, the company reported its second-quarter financials. Firstly, it posted sales of $41.1 billion for the quarter, an 8.1% increase compared to a year earlier. This is also the first time the company achieved a milestone of over $40 billion in quarterly sales in its history. Secondly, net earnings for the quarter were $4.8 billion or $4.53 per diluted share. Comparable sales for the quarter also grew by 4.5% year-over-year. Also, the company ended the quarter with $4.5 billion in cash and cash equivalents.
Home Depot has also declared a second-quarter cash dividend of $1.65 per share that will be payable on September 16, 2021, to shareholders at the close of business on September 2, 2021. This is the 138th consecutive quarter that the company has paid a cash dividend. Last month, the company also opened three new distribution centers in Atlanta. The 1.5 million-square-foot campus will bring nearly 500 new jobs to Baltimore and provide even faster delivery options to customers in the region. With that being said, will you consider adding HD stock to your watchlist?
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JD.com Inc.
Next up, we have JD, an e-commerce company with headquarters in Beijing. It is one of the biggest B2c online retailers in China by transaction volume and revenue and is a major competitor to Alibaba (NYSE: BABA). The company has also invested in high tech and AI delivery through drones, autonomous technology, and robots. It also boasts one of the largest drone delivery systems, infrastructure, and capabilities in the world. JD stock currently trades at $80.84 as of 1:50 p.m. ET.
Last week, the company announced its second-quarter financials. Diving in, net revenue for the quarter was $39.3 billion, an increase of 26.2% from a year ago. Its services revenue for the quarter was $5.3 billion, an increase of 49.2% year-over-year. Net income for the quarter was $123 million or $0.08 per diluted share. It also noted that its annual active customer accounts increased by 27.4% to 531.9 million users year-over-year. This is remarkable as the company is now one of the leading supply chain-based technology and service companies.
The company’s health care brand, JD Health, closely worked with leading global pharmaceutical companies. Notably, it enhanced its cooperation with UCB China and became its strategic partner for the distribution of UCB China’s anti-allergic drug Zyrtec. JD Health also officially launched the AstraZeneca (NASDAQ: AZN) direct sales flagship store. Given the excitement surrounding the company, is JD stock worth adding to your portfolio right now?
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Costco Wholesale Corporation
Last but not least, we will be taking a look at Costco. For the most part, investors and consumers alike would be familiar with the company’s offerings. In brief, Costco operates as a big-box store retailer. As one of the largest retailers across the globe today, COST stock could be a viable retail industry bet for some. For one thing, the recent resurgence in coronavirus cases would see consumers turning to its wholesale operations again.
Now, the company’s shares currently trade at $455.69 a stock as of 1:51 p.m. ET. Given all of this, would COST stock be worth investing in at its current price point? Well, CNBC’s Jim Cramer appears to believe so. Late last month Cramer highlighted COST stock as having “strong pricing power”. He attributes this to shoppers recognizing the value in their Costco store memberships.
On top of all that, the company also seems to be gaining momentum on the financial front. In its latest fiscal quarter, Costco posted total revenue of $45.28 billion, marking a solid 21% year-over-year increase. Over the same period, the company also reported jumps of over 45% in both its net income and earnings per share. After considering all of this, will you be keeping an eye on COST stock this week?
