Retail Stocks To Buy
The retail sector faced unprecedented challenges in recent years. However, analysts and investors are hoping the retail industry can finally normalize in 2022 after a string of disturbances, including lockdowns, inflation, supply chain disruptions and a tight labor market. Since the outbreak of the omicron variant of COVID-19 began in late November, the SPDR S&P Retail ETF (ticker: XRT), an exchange-traded fund that tracks the sector, is down about 20%. Fortunately, the Morningstar analyst team says there are plenty of opportunities for selective investors to buy high-quality retail stocks in anticipation of a return to normalcy. Here are seven of Morningstar's top retail stocks to buy in 2022.
retail stocks to buy
Shares of online retail giant and cloud services leader Amazon haven't delivered the type of gains long-term investors are used to as of late. In fact, Amazon shares are down about 12% in the past year. Analyst Dan Romanoff says long-term investors shouldn't worry about Amazon's recent underperformance. He says the company's AWS cloud business and its nascent advertising business will provide fuel for future growth, while Amazon Prime membership is its "secret sauce" that ties its ecosystem together and provides high-margin recurring revenue. Morningstar has a "buy" rating and $4,100 fair value estimate for AMZN stock, which closed at $2,777.45 on Jan. 26.
Retail is a wide sector selling all sorts of goods to the consumers through brick-and-mortar stores or online. Products sold by retail companies include groceries, electronics, furniture, kitchenware, sporting goods, books, and toys. But this article focuses on top retail companies which also sell apparel. Retail industry has shown a return of 85.9% over the past 12 months in the stock market . During the pandemic and economic slowdown the households tend to save money, but with life getting back to normal consumer retail spendings are growing. We have prepared a list of the best retail stocks to buy now.
Gainy app creates stock lists and categories based on the NASDAQ Composite and current market information. There is a pool of companies that are always on the list of retail stocks to buy now. For example, companies from the S&P 500 that are stable and present on the market for many years.
Costco is a wholesale retailer selling discounted goods through membership warehouses and online. The two fastest-growing areas are fresh foods and hardlines products. The stock has run up 42.3% over the past six months.
Alibaba Group is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. The company has been under pressure from the government in the past year and has seen a decline, which many stock market experts consider a very long-waited trampoline for the stocks to go up.
Farfetch is a British-Portuguese online luxury fashion retail platform that sells products from over 700 boutiques and brands from around the world. Luxury segment is quite a runner-up in online shopping but catching up the trends quickly. FarFetch had a successful IPO followed by some stock price corrections, which we consider lucrative as there are not many competitors in the luxury e-com.
The app allows you to create personalized collections such as the best retail stocks, USA Fintech, or Mid-cap stocks. Our analytic toolkit provides each customer with customized information and shows just the stocks they can potentially be interested in. In-app functionality and filters offer the possibility to arrange and customize all needed data in one place. The powerful search helps to find out everything about retail sector stocks, ETF, cryptocurrency, investment idea, and collections that users like to invest in.
However, a report from the National Retail Federation (NRF) seems to suggest that the retail sector is still proving to be resilient. The Federation estimates that core retail sales (excluding auto dealers, restaurants and gasoline stations) ticked up 0.1% in August versus July and are up 8% (unadjusted) year-over-year.
"August retail sales show consumers' resiliency to spend on household priorities despite persistent inflation and rising interest rates," said Matthew Shay, president and CEO of the National Retail Federation. "As we gear up for the holiday season, consumers are seeking value to make their dollars stretch."
With this in mind, we used the TipRanks database (opens in new tab) to shortlist five retail stocks that Wall Street analysts are still bullish on. Each name boasts a Strong Buy rating and offers a significant upside potential to current levels based on their consensus price targets.
In Q2, the retailing giant's lower-cost products, especially in the grocery segment, helped pull more middle-to-high-income customers to its stores as inflation continued to rise. On a constant currency basis, Walmart posted revenues of $152.9 billion in the second quarter, up 9.1% over the year prior.
Walmart is also looking at scaling up its higher-margin, early stage businesses, including advertising, marketplace, fulfillment services, financial and healthcare services, and data monetization. All of this could lead to a more diversified profit model for one of Wall Street's favorite retail stocks.
The TJX Companies (TJX (opens in new tab), $61.27), an off-price apparel and home fashion retailer in the U.S., has seen its shares decline by more than 19% this year. This is after the retailer delivered mixed second quarter results last month.
Ten of 13 analysts surveyed by TipRanks agree that TJX is one of the best retail stocks right now, categorizing it as a Buy. Hear what else the pros have to say about TJX on TipRanks (opens in new tab).
J.P. Morgan analyst Matthew Boss is upbeat about the stock with a Buy rating and a $23 price target. The analyst recently pointed out that even amid the broader macroeconomic volatility, almost all the companies in the retail sector under his coverage showed signs of "improvement" in the month of August relative to the month of June.
LEVI is another of the Strong Buy-rated retail stocks. Of the analysts who have released notes over the past three months, seven say it's a Buy and just one has it at Hold. Check out other analysts' price targets and analysis for LEVI at TipRanks (opens in new tab).
Overall, the Street is bullish toward one of Wall Street's top retail stocks. Thirty-seven of 38 covering analysts that have sounded off over the past three months have Amazon at Buy. See the full rundown of analyst ratings for AMZN on TipRanks.
Of the 10 analysts who have sounded off on one of the best retail stocks over the past three months, nine are in the bull camp, according to TipRanks. TipRanks offers up a full analyst rundown of CPRI shares (opens in new tab).
Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks since January 2021. You can contact Shrilekha on LinkedIn."}; var triggerHydrate = function() window.sliceComponents.authorBio.hydrate(data, componentContainer); var triggerScriptLoadThenHydrate = function() if (window.sliceComponents.authorBio === undefined) var script = document.createElement('script'); script.src = ' -9-3/authorBio.js'; script.async = true; script.id = 'vanilla-slice-authorBio-component-script'; script.onload = () => window.sliceComponents.authorBio = authorBio; triggerHydrate(); ; document.head.append(script); else triggerHydrate(); if (window.lazyObserveElement) window.lazyObserveElement(componentContainer, triggerScriptLoadThenHydrate, 1500); else console.log('Could not lazy load slice JS for authorBio') } }).catch(err => console.log('Hydration Script has failed for authorBio Slice', err)); }).catch(err => console.log('Externals script failed to load', err));Shrilekha PetheSocial Links NavigationContributing Writer, Kiplinger.comShrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks (opens in new tab) since January 2021. You can contact Shrilekha on LinkedIn (opens in new tab).
Inventory excesses, soaring inflation and rapidly shifting trends made for a rough environment for retailers across the board. Some brands withstood the challenges while others took a hit to their business, widening the gap between the winners and losers in retail.
The fashion brand this year outlined a plan to continue its streamlined retail strategy and double down on its direct channels. The retailer plans to open more than 250 stores over the next three years, focusing on 30 top cities around the globe.
Shares of companies that sell goods or services directly to consumers, typically through brick-and-mortar stores or online platforms, are referred to as retail stocks. This industry is critical to the economy because it accounts for a significant portion of consumer spending and can provide investors with a way to potentially profit from economic growth. Clothing, electronics, home goods, and food and beverage are just a few examples of retail stocks. 041b061a72