Are These Top Retail Stocks Worth Investing In This Week?
When looking for the most active stocks today, investors might be looking towards retail stocks. Sure, the stock market may be hugging the flat line this week, but there is a case to be made for retail companies now. For starters, the retail industry has come a long way since taking massive hits at the onslaught of the pandemic. Over a year later, April’s retail sales figures are up by over 51% year-over-year.
According to the U.S. National Retail Federation, this figure could continue to climb amidst record savings and a reopening economy. For the most part, I would be inclined to agree with this. After all, most of the top names in retail have and continue to leverage e-commerce services to the fullest. When you couple this with brick-and-mortar store figures recovering, we could see the retail industry come back stronger than ever.
For instance, we can see that leading e-commerce company Alibaba (NYSE: BABA) continues to make massive plays. Earlier today, it was reported that the company is leading a $400 million round of funding for Masan Group. Namely, this investment will be put towards Masan’s retail unit in Vietnam, one of Asia’s fastest-growing economies. At the same time, investors would be watching the retail space considering many huge names are reporting earnings this week. For instance, Target (NYSE: TGT) will be announcing first-quarter earnings tomorrow. Safe to say, top retail stocks would be in the limelight in the stock market today. Should you be looking to add some to your portfolio, here are four trendings now.
Best Retail Stocks To Watch This Week
The Home Depot Inc.
Home Depot is one of the largest home improvement retailers in the U.S. It supplies a wide variety of tools, construction products, and services. It boasts more than 2,200 stores across North America and has approximately 500,000 associates. Aside from its retail space, the company also has an impressive e-commerce business that offers more than 1 million products for DIY customers and professional contractors. HD stock currently trades at $318.55 as of 3:40 p.m. ET. Today, the company announced its first-quarter results.
In it, the company reported sales of $37.5 billion for the quarter, an increase of 32.7% year-over-year. Comparable sales for the quarter increased by 31%. Home Depot also posted net earnings of $4.1 billion or $3.86 per diluted share. For the first quarter of fiscal 2021, diluted earnings per share increased by 85.6% from the same period in the prior year.
The company is certainly off to a strong start as it continues to carry out its strategic investments. It has also effectively managed the unprecedented demand for home improvement projects in the last year. All things considered, will you add HD stock to your portfolio?
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Walmart Inc.
Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the U.S. The company claims that approximately 220 million customers and members visit its 10,500 stores and clubs in 24 countries and e-commerce websites. WMT stock currently trades at $142.43 as of 3:40 p.m. ET. The company also reported its first-quarter financials today.
Diving in, total revenue for the quarter was $138.3 billion, a 2.7% increase year-over-year. The company’s e-commerce sales grew by 37% with strong results across all channels. Also, consolidated operating income for the quarter was $6.9 billion, an increase of 32.3% compared to a year earlier.
CEO Doug McMillon had this to say, “This was a strong quarter. Every segment performed well, and we’re encouraged by traffic and grocery market share trends. Our optimism is higher than it was at the beginning of the year. In the U.S., customers clearly want to get out and shop. We have a strong position as our store environment improves and e-commerce continues to grow.” Given this piece of news, will you consider buying WMT stock?
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Macy’s Inc.
Macy’s is a holding company that specializes in retail. In essence, it is one of the nation’s premier omnichannel retailers. The company comprises three retail brands: Macy’s, Bloomingdale’s, and Bluemercury. Given its impressive e-commerce capabilities, rich mobile experience, and national stores footprint, Macy’s has approximately 90,000 employees and over 700 stores.
The company reported its first-quarter financials today as well and exceeded expectations on both top and bottom lines. M stock currently trades at $19.18 as of 3:40 p.m. ET and is up by over 65% year-to-date.
In today’s first-quarter report, Macy’s reported that it outperformed sales expectations across all three brands. It also continued to build on the momentum from its fourth quarter and its sales trend continued to improve throughout the quarter. Net sales for the quarter were $4.706 billion, an increase of 55% year-over-year. Digital sales grew by 34% year-over-year and the company brought in 4.6 million new customers into the Macy’s brand. It also ended the quarter with $1.8 billion in cash due to strong performance and more efficient use of capital. With these financials, is M stock a top retail stock to consider buying?
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Sea Limited
Following that, we have leading Southeast Asian e-commerce company, Sea Limited (SE). The retail giant primarily operates out of its three core divisions which focus on e-commerce, fintech, and entertainment. For the most part, SE’s respective Shopee, SeaMoney, and Garena services continue to hold substantial footing in the Southeast Asian market. Arguably, investors looking to bet on the fast-growing consumer market in the region would be eyeing SE stock now. As it stands, the company’s shares are currently up by over 220% in the past year. Given its recent earnings figures, I could see these trends continue.
Earlier today, SE reported stellar figures across the board in its first-quarter fiscal. Notably, the company raked in a total revenue of $1.8 billion for the quarter, a 146.7% year-over-year surge. According to SE, this is thanks to massive growth across all three of its core divisions. To begin with, revenue from e-commerce and related services skyrocketed by 189% year-over-year.
Next, SE’s total payment volume figures from its SeaMoney division tripled year-over-year. Finally, the company’s Garena gaming division saw revenue more than double over the same time. By and large, it seems that SE is firing on all cylinders right now. The real question is whether it can maintain its current momentum moving forward. Regardless, would you consider investing in SE stock now?
