Are These The Best Retail Stocks To Buy Or Sell This Month?
Many retail stocks are still attempting to recover in the market. In late February through March, a number of retail stocks plunged to all-time lows. This is due to the coronavirus pandemic causing retail stores to close indefinitely. In many places, retail stores are still closed. Some saw reopening and then had to close again. With that being said, not all types of retail stores have closed down.
Top retail stocks like Walmart (WMT Stock Report) and Costco Wholesale Corporation (COST Stock Report) stayed open despite the pandemic. This has caused their stock prices to reach new record highs. That is why there are many retail stocks to keep your eye on at the moment. So let’s jump into this list of retail stocks to watch as we enter the month of September.
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Top Retail Stocks To Watch In September: Nordstrom Inc.
The first retail stock on this list is Nordstrom Inc. (JWN Stock Report). Nordstrom is a retail company with a primary focus on luxury goods. Nordstrom’s closures caused JWN stock to dip in late February to March. In fact, JWN stock fell about 67.5% a share. Still to this day, JWN stock price has yet to recover. Nordstrom still has many of its locations closed around the world.
Nordstrom is also being forced to close some stores permanently. Nordstrom is relying on the economy to recover and a coronavirus vaccine to be found in order to recover. Seemingly that is the only way for JWN stock to find its way to recovery. If Nordstrom can start reopening stores then it could potentially start to recover. Is this an opportunity to buy JWN stock while it’s low? Only time will tell what may happen to this volatile retail stock.
Top Retail Stocks To Watch In September: Ulta Beauty
Why is Ulta Beauty Inc. (ULTA Stock Report) so close to recovery? Let’s talk about who the company is first. Ulta Beauty is a retail chain of beauty stores in the United States. The primary products that Ulta sells are cosmetic and skincare related. Ulta sells a lot of personal care related items as well. On August 28th, Ulta released its second-quarter fiscal 2020 earnings results. Net sales fell 26.3% year over year due to pandemic related closures. Ulta did beat estimates though.
Before the pandemic began, ULTA stock was at $257 a share on average. As of August 31st, ULTA stock price is at $232 a share. While it is not extremely close to recovery, it is much closer than other retail stocks. ULTA has been able to beat earnings estimates despite its net sales being down. That is precisely why ULTA stock is on this list of retail stocks. As reopening proceeds throughout the US, Ulta could bring its sales numbers up in the future.
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Top Retail Stocks To Watch In September: Ralph Lauren
On this list of retail stocks, the final one to watch is Ralph Lauren Corporation (RL Stock Report). Ralph Lauren Corporation is a retail company that sells mid-range to luxury fashion items. Through the duration of the coronavirus so far, Ralph Lauren has not been performing well. The primary source of its sales came from retail locations.
Without retail, Ralph Lauren has been in quite some trouble. This has reflected itself onto RL stock price. In January RL stock was around $113 a share on average. Since then, RL stock is now at $68 a share on average as of August 31st. Just like Nordstrom and many other retail stocks, RL stock is relying on reopening to increase once again. That is why RL stock could be on your watch list, as it has the potential to grow when its stores reopen.
Bottom Line
Retail stocks, despite being a struggling sector, have potential in many cases. You’ve seen how Walmart and Costco have gone up dramatically in stock price. This is because of their ability to strive during the coronavirus. This means that there is room for many other retail stocks to increase in price as soon as a vaccine is found and reopening can commence in the retail sector.
