3 Top Retail Stocks To Watch Ahead Of September 2021
After a stellar week for the retail industry, retail stocks could be among the most trending stocks today within the stock market. This seems to be the case even as Delta fears continue to linger over the current reopening trade. Evidently, some of the biggest names in the sector reported solid figures across the board. Just last week, Walmart (NYSE: WMT) beat its earnings expectations while Target (NYSE: TGT) had a blowout quarter. If anything, some would argue that these retail giants among others would be factors contributing to the current strength of the broader stock market now.
Similarly, this trend appears to be holding strong this week as well. Earlier today, Best Buy (NYSE: BBY) smashed Wall Street’s estimates in its second-quarter fiscal. Namely, the company posted an earnings per share of $2.98 on revenue of $11.85 billion for the quarter. This compares to projections of $1.85 and $11.45 billion respectively. According to Best Buy, sales for the quarter rose by almost 20% as consumers upgraded their household devices. The likes of which range from better work-from-home equipment to streaming TVs.
Not to mention, even niche retail names like Camping World (NYSE: CWH) are making headlines in the market today. In detail, the recreational vehicle retailer announced that it would be doubling its quarterly dividend from $0.25 to $0.50. With the retail space showing no signs of slowing, could one of these stocks be worth watching?
Best Retail Stocks To Buy [Or Sell] This Week
- Apple Inc. (NASDAQ: AAPL)
- JD.com Inc. (NASDAQ: JD)
- Advance Auto Parts Inc. (NYSE: AAP)
Apple Inc.
First up, we have Apple, a tech retailer that has essentially revolutionized personal technology. Today, the company’s premium products are used by millions all over the world. It also provides a wide number of tech services like Apple TV, Apple Music, and the App Store. The company is one of the most valuable tech companies in the world and has very strong brand loyalty. AAPL stock currently trades at $150.37 as of 10:44 a.m. ET.
In late July, the company reported its third-quarter financials for fiscal 2021. To begin with, it posted record revenue of $81.4 billion, up by 36% year-over-year and quarterly earnings per diluted share of $1.30. The company said that its operating performance for the quarter included new revenue records in each of its geographic segments. Apple also enjoyed double-digit growth in each of its product categories and a new all-time high for its installed base of active devices. Also, the company’s board of directors has declared a cash dividend of $0.22 per share of the company’s common stock.
Last week, the company was also ranked highest among the Midsize Credit Card segment for its Apple Card by the J.D. Power 2021 U.S. Credit Card Satisfaction Study. It received a chart-topping score of 864. The Apple Card disrupted the credit card industry when it launched in 2019 as the first credit card designed for the iPhone. The card provides customers with a secure and seamless way to manage their finances right from Apple Wallet on their Apple products. The company also expanded the benefits of the card to share an account with the Family Sharing group. All things considered, will you consider buying AAPL stock right now?
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JD.com Inc.
Following that, we have JD.com, a leading China tech stock in the e-commerce market today. In fact, it is one of the largest e-commerce presences in the Chinese market. This would be in terms of transaction volume and revenue. As it stands, JD stock currently trades at $73.84 a share as of 10:44 a.m. ET. This would be after skyrocketing by over 10% at today’s opening bell.
Accordingly, the current hype around JD would be thanks to its stellar earnings figures. For starters, the company reported a total revenue of $39.3 billion for the quarter, marking a sizable 26% year-over-year increase. At the same time, JD also saw its annual active customers count surge by over 27% to 531.9 million. The company cites improving consumer spending even against the backdrop of regulatory pressures.
By and large, would all of this make JD stock a top retail stock to own now? If anything, Cathie Wood appears to believe so. Earlier today, news broke that Wood’s Ark Investment Management firm bought up over 164,000 American depository receipts (ADRs). While the company’s shares still trade below its 52-week high, would you consider buying JD stock on the dip?
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Advance Auto Parts Inc.
Advance Auto Parts (AAP) is an automotive aftermarket parts provider with headquarters in North Carolina. In fact, it is a leading parts retailer that serves both professional installers and do-it-yourself customers. Impressively, the company operates over 4,600 stores and has 178 Worldpac branches in the U.S., Canada, and Puerto Rico. AAP stock currently trades at $209.50 as of 10:45 a.m. ET. Today, the company reported impressive second-quarter results today.
Firstly, it posted net sales of $2.6 billion, a 5.9% increase. Comparable store sales increased by 5.8%. Secondly, AAP also posted a diluted earnings per share of $2.74. The company says that it is committed to a balanced approach in returning cash to shareholders. It returned a record $57.9 million to its shareholders through a combination of share repurchases and its quarterly cash dividend. Also, the company says that it will remain focused on executing its long-term strategy. This includes growth at or above the industry and capitalizing on its unique margin expansion opportunity.
CEO Tom Greco had this to say, “Our top-line improvement was led by the professional business with a recovery in miles driven fueling demand as we lapped double-digit DIY omnichannel growth in the prior year. Our Adjusted operating income margin expanded 11 basis points to 11.4%. When compared with the second quarter of 2019, our Adjusted operating income margin increased 227 basis points demonstrating progress against our margin expansion initiatives.” On top of that, the company also increased its full-year 2021 guidance. For these reasons, will you consider adding AAP stock to your portfolio?
