Do You Have These Top Retail Stocks In Your Portfolio?
While U.S. inflation data could make or break major growth stocks in the stock market this week, retail stocks could be in focus. Why? Well, as loosening pandemic restrictions unleash consumers eager to spend this summer, the retail industry would be looking at tailwinds. Namely, after spending over a year in their homes, consumers are more than open to the idea of the return to normalcy. This would especially be the case for those who have been fully vaccinated. By extension, that would involve more people going out and spending time at physical establishments again. In turn, this is where retail stocks come into play.
On one hand, we can see that retailers who are gradually reopening physical stores are already thriving. Take the likes of Gap (NYSE: GPS) and Best Buy (NYSE: BBY) for example. Both companies reported stellar quarters as consumer spending gained traction across the board. In particular, Gap even saw its sales exceed pre-pandemic levels while Best Buy is riding home improvement trends. On the other hand, some of the biggest names in the digital retail space are not sitting idly by as well. While e-commerce may not be as necessary now, consumers would still appreciate the convenience, nonetheless. For instance, Alibaba (NYSE: BABA) is among the latest players in the industry to make a move this week. Yesterday, the company revealed that it would be expanding its e-commerce portfolio via a cloud-based live streaming product.
By and large, as consumers return to the retail scene in full force, retailers are bringing their best as well. If anything, some would argue that retail stocks could be worth keeping an eye on now. Should you agree with that, here are three to consider in the stock market today.
Retail Stocks To Buy [Or Sell] In June 2021
- ContextLogic Inc. (NASDAQ: WISH)
- CarLotz Inc. (NASDAQ: LOTZ)
- Casper Sleep Inc. (NYSE: CSPR)
ContextLogic Inc.
For starters, we will be looking at ContextLogic Inc. who is often referred to as Wish. In brief, the California-based company mainly operates via its e-commerce platform, Wish. The likes of which basically facilitate transactions between sellers and buyers. Notably, Wish connects millions of consumers in over 100 countries to over half a million merchants across the globe. According to Wish, it employs a mixture of tech and data science to create engaging discovery-based shopping experiences for users. More importantly, WISH stock appears to be on retail investors’ radars now. Evidently, the company’s shares surged by over 49% during yesterday’s intraday trading session.
According to recent search analytics data on the infamous r/WallStreetBets Reddit page, mentions of WISH stock soared by over 11,000% in the past few days. Subsequently, the e-commerce company saw retail traders flocking towards its shares, hence yesterday’s price hike. To put things into perspective, the average daily volume for WISH stock was around the ten million range. Yesterday, we saw over 150 million of the company’s shares changing hands. Could we be looking at another meme stock in the making here?
Time will tell if that is the case. But, while WISH stock may be trading below its IPO price, the company remains hard at work. Just last month, Wish posted solid figures in its recent quarter fiscal. In it, the company raked in total revenue of $772 million for the quarter. This would mark a significant 75% year-over-year surge. According to Wish, a 76% year-over-year jump in core marketplace revenue per active buyer is to thank for this performance. All things considered, will you be adding WISH stock to your portfolio?
Read More
CarLotz Inc.
Next up, we have used vehicle retailer, CarLotz Inc. For the most part, the company’s core Retail Remarketing business strategy consists of two key elements. First, CarLotz provides its corporate vehicle sourcing partners and retail used vehicle sellers with a proper retail sales channel. At the same time, the company also seeks to provide potential buyers with affordable prices, “below those of traditional dealerships”. How CarLotz does this, is via a tech-enabled buying, sourcing, and selling model, offering customers a comprehensive selection of vehicles. On top of that, the company’s multichannel operations also provide a contactless, end-to-end e-commerce interface for business transactions.
Given the viability of CarLotz’s offerings now, investors could be looking at LOTZ stock. Just this week, the company’s shares are looking at gains of over 30%. Likewise, things appear to be taking off for CarLotz on the operational front as well. This month, the company has made three significant expansions to its network in the U.S. To begin with, the company opened a new hub in Charlottesville, Virginia yesterday. This would mark its fourth brick-and-mortar location in the state, the 12th in the nation. Next, it also announced plans to launch pioneer hubs in Colorado and the St. Louis metro area last week. In a time where retail customers are returning to physical stores, CarLotz is strategically expanding its physical presence in the U.S.
Meanwhile, the company is not falling behind on the financial front as well. This is evident as CarLotz reported record figures in its first-quarter fiscal posted last month. In detail, the company saw massive year-over-year surges of 122.9% in total revenue 76% in unit sales for the quarter. With CarLotz seemingly firing on all cylinders now, would you consider investing in LOTZ stock?
[Read More] 4 Artificial Intelligence Stocks To Watch Right Now
Casper Sleep Inc.
Another upcoming name in the retail space now would be Casper Sleep Inc. For some context, Casper Sleep is a retail company that, as the name suggests, markets sleep products. It does so via an omnichannel model consisting of both e-commerce services and retail locations. Now, as the current momentum in home improvement spending amongst consumers appears to be going strong, CSPR stock could be worth watching. Indeed, this appears to be the case as the company’s shares are currently up by over 85% year-to-date.
In its recent quarter fiscal posted last month, the company posted record revenue of $127.7 million for the quarter. To point out, Casper Sleep saw strong growth in its retail partnership channel revenue, a 54% year-over-year increase. Overall, CEO Philip Krim cites the company’s third-party manufacturing model as a key growth driver for the quarter.
In the long run, Krim had this to say, “We continue to see strong demand signals across our business, and expect top-line growth to accelerate in the coming quarters and are raising our full-year 2021 financial outlook to reflect these favorable trends.” By and large, it seems that Casper Sleep is confident in its ability to make the most of the current market trends. Having read all of this, do you consider CSPR stock a top buy now?
