Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Retail Stock Superstars To Buy Now

By MarketBeat.com (Sean Sechler )Stock MarketsAug 27, 2021 06:31AM ET
www.investing.com/analysis/3-retail-stock-superstars-to-buy-now-200600204
3 Retail Stock Superstars To Buy Now
By MarketBeat.com (Sean Sechler )   |  Aug 27, 2021 06:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The retail industry is definitely one of the most competitive sectors in the market, which means it's imperative to only invest in either the key players or companies that offer something truly unique to shoppers. There’s also the fact that the global pandemic caused a massive shift in the way consumers shop and helped the true retail leaders gain even more market share, which means some of the top stocks in the sector have delivered astounding gains over the past year.

Although a lot of these stocks have already had quite the move up recently, there’s still a lot to like about owning top retail companies, particularly when you consider how the global economy is rebounding, shoppers are heading back into physical stores, and many retail earnings reports from last quarter were resoundingly positive.

We’ve put together a list of 3 retail stock superstars to buy now so that you can go shopping for the best names in the business ahead of what is usually the strongest period of the year for these companies, the holiday season. Let’s take a deeper look below.

1. Dick’s Sporting Goods

The majority of successful retailers today operate with an omnichannel business model, which means that they combine multiple channels to market, sell, buy, and deliver their products. For example, a company that sells products at brick-and-mortar stores along with online via e-commerce is a powerful combination for investors to pursue. Dick’s Sporting Goods (NYSE:DKS) falls under the omnichannel retailer category and is one of the largest U.S.-based sporting goods companies, which makes it a great option to consider in the sector. Consumers can find equipment, apparel, footwear, and accessories at one of 857 physical stores or shop online on the company’s robust e-commerce platform.

Investors have to be impressed by the company’s stellar Q2 results, which saw Dick’s Sporting Goods deliver record quarterly sales and earnings. The company reported Q2 earnings per diluted share of $4.53, up 45% year-over-year, and also raised its full-year guidance. Dick's Sporting Goods (NYSE:DKS) even announced a special dividend payment of $5.50 per share along with a 21% increase in its existing quarterly dividend payout, which tells us that this retailer is generating plenty of cash. It’s clear that in-store sales are rebounding nicely for this retail superstar, and the company’s Q2 e-commerce sales growth of 111% versus Q2 2019 is an indication that this company is delivering strong digital sales growth as well.

2. Williams-Sonoma

Next, we have a superstar retailer that specializes in high-quality home goods, which is certainly appealing given the continued strength in the housing market. Williams Sonoma offers products through several well-known merchandise brands, including Williams-Sonoma (NYSE:WSM), Pottery Barn, Pottery Barn Kids, West Elm, Rejuvenation, and more. It’s another strong omnichannel retailer that is focusing on a digital-first model, which is attractive given how more people are shopping online than ever before. Ecommerce accounted for 65% of total company revenues in Q2, which tells investors just how big of a digital presence the company has in the new retail landscape.

The company just delivered record Q2 earnings results including notable revenue growth of 30.7% year-over-year and Q2 diluted EPS of $3.21, up 80% year-over-year. Williams Sonoma is experiencing growth across all of its brands and sales channels at the moment and with so many people investing big in their homes and home décor it's easy to recognize the potential here. What’s also intriguing about this stock is that the company just increased its dividend by 20% and authorized a stock repurchase program of $1.25 billion. Expect this specialty retailer to deliver strong gains over the next few months, particularly during the holiday season.

3. TJX Companies

Finally, investors in search of a retail stock that caters to discount shoppers should be quite intrigued by TJX Companies (NYSE:TJX). It’s a leading off-price retailer of apparel and home fashions that offers products priced anywhere from 20% to 60% below full-price retailers’ regular prices. The company’s stores including T.J. Maxx, Marshalls, HomeGoods, Homesense, and Sierra all offer a unique value proposition to shoppers since they deliver some of the most popular brands at deeply discounted prices. The company also has a ton of leverage with its suppliers, which allows TJX Companies to stock up on products that major manufacturers need to get rid of quickly at great prices.

TJX Companies is expanding its digital sales channel and offers a distinctive treasure hunt shopping experience that certainly appeals to bargain buyers, which makes it a unique stock in the retail sector. The company delivered impressive Q2 earnings including sales up 81% year-over-year to $12.1 billion, which tells us that consumers are certainly still hungry for a good deal in a post-pandemic retail environment. The stock also offers a decent dividend and could benefit from back-to-school shopping in Q3, which are additional reasons why it is a top pick in retail at this time.

Original Post

3 Retail Stock Superstars To Buy Now
 

Related Articles

3 Retail Stock Superstars To Buy Now

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email