Could These Be The Best Reopening Stocks To Invest In This Week?
When it comes to the best stocks to invest in 2021, some would argue that reopening stocks would fit the bill now. Why? In the stock market, this industry comprises companies that are well-positioned to flourish as the economy reopens. In a broader sense, these are organizations whose core businesses were either heavily impacted or entirely halted at the onslaught of the pandemic. Now, thanks to increasingly available vaccines, parts of the world are heading towards the tail-end of the pandemic. On top of businesses reopening, consumers would also be looking to indulge in post-pandemic means of entertainment.
Now, one notable area would be the travel industry. From airline stocks to cruise line stocks and vacation rental companies, many stand to benefit from the return of travel. Even now, we can see that this tailwind seems likely to persist moving forward. Yesterday, Boeing (NYSE: BA) revealed that its orders continue to outpace cancellations for a fourth consecutive month in May. This would be thanks to airline operators such as Southwest Airlines (NYSE: LUV) increasing their orders. Moreover, the U.S. Centers for Disease Control and Prevention (CDC) eased travel recommendations on 110 countries earlier this week.
Aside from the tourism market, there are plenty of other points of entry into the reopening trade for investors now. On one hand, you have brick-and-mortar retail players like American Eagle Outfitters (NYSE: AEO) thriving as consumers return to malls. On the other hand, live entertainment company Live Nation Entertainment (NYSE: LYV) would be busy with festivals making a comeback. By and large, the reopening trade appears to be firing on all cylinders at the moment. As such, I could see investors eyeing the top reopening stocks in the stock market today. Should you fall into the same boat, here are three making waves now.
Top Reopening Stocks To Watch In June 2021
- Target Corporation (NYSE: TGT)
- Airbnb Inc. (NASDAQ: ABNB)
- Abercrombie & Fitch Co. (NYSE: ANF)
Target Corporation
Target is a retail corporation and is also a component of the S&P 500. The company has stores in all 50 U.S. states and claims that 75% of the U.S. population lives within 10 miles of a Target store. This comes to over 1,900 stores and 44 distribution centers. Impressively, it also has 48 owned brands that are unique to Target. TGT stock currently trades at $233.10 as of 12:40 p.m. ET and is up by over 30% year-to-date. Today, the company announced that it has increased its quarterly dividend by 32% to $0.90 per share.
Last month, the company reported strong first-quarter financials. Firstly, comparable sales increased by 18% year-over-year. Secondly, its digital comparable sales grew by 50% in that same period. It also reported first-quarter GAAP earnings per share of $4.17, up by a whopping 643% year-over-year. Importantly, the company also saw market-share gains of more than $1 billion in the first quarter, on top of $1 billion in share gains a year ago.
In March, the company stated that it had been continuing to build on the momentum and announced its 2021 strategic investments. Specifically, it plans to invest approximately $4 billion annually during the next few years to continue scaling capabilities across its retail platform. It will accelerate new store openings and store remodels, enhance fulfillment services and strengthen its supply chain as it provides guests with a safe, easy, and convenient shopping experience. For these reasons, will you consider buying TGT stock?
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Airbnb Inc.
Airbnb is a reopening stock that operates an online marketplace for hosts to rent out homestays and tourism activities. The company has over 4 million hosts who have welcomed more than 900 million guest arrivals in almost every country across the globe. ABNB stock currently trades at $147.89 as of 12:40 p.m. ET. On Monday, the company announced an exciting piece of news, much to investor delight.
In detail, the company launched The Great Rebalance of European Travel, a series of commitments to work with communities in Europe to help rebalance tourism following the pandemic. Notably, Airbnb plans to support the regulation of short-term rentals. It aims to collaborate with governments to redistribute tourism and help prevent the return of overtourism, where too much tourism is concentrated in too few places.
Last month, the company introduced the Airbnb 2021 Release which includes over 100 innovations and upgrades across its entire service in light of the economy reopening all over the world. This includes adding features to give guests even more flexibility when planning their travel and to make it simpler for anyone to become a host. The new features would also give better support for hosts and guests to meet a new era in travel. This in turn could increase its host and user count in the long run given how many people are eager for travel. Given all of this, is ABNB stock a top reopening stock to consider buying?
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Abercrombie & Fitch Co.
Abercrombie & Fitch (ANF) is a lifestyle retailer that focuses on casual wear. It sells its apparel and accessories for men, women, and kids through its five brands. Among the five, it has three other offshoot brands: Abercrombie Kids, Hollister Co., and Gilly Hicks. Today, the company boasts approximately 730 stores across the globe and also a strong e-commerce presence across its brands. ANF stock currently trades at $41.68 as of 12:41 p.m. ET and has been up by over 200% in the last year.
Today, the company received a stock rating upgrade from Jefferies Financial Group. Diving in, the equities researchers at Jefferies upgraded ANF stock from a hold rating to a buy rating in a report it released today. It also set a price objective of $57 on the apparel retailer’s stock. This has been attributed to ongoing benefits from years of brand elevation efforts as well as an increase in profit margins.
Late last month, the company also reported impressive first-quarter financials. In it, ANF says it has achieved its best first-quarter operating income since 2008. Net sales for the quarter were $781 million, up by 61% compared to last year. Digital net sales increased by 45% to $403 million, reflecting robust growth. ANF also posted a net income per diluted share of $0.64. With such impressive financials, would you say that ANF stock is worth adding to your portfolio?
