Retail stocks are the stocks of the retail companies engaged in selling goods to the consumers for personal use. They are highly volatile and easily affected by the spending capability and perceptions of consumers.
The retail industry and retail stocks are the ones most affected by the consumers and the economy. If the economy is good and consumers have ample money to spend, the retail industry gets directly impacted, and retail stock prices shoot up. Similarly, when people do not have enough money to spend, the primary industry to get affected is retail.
|CHS||Chico's FAS, Inc.||$5.71||30.96%||714.1M|
|FRAN||Franchise Brands PLC||$200.14||31.24%||260.8M|
|DEST||Destiny Pharma PLC||$57.75||-34.38%||42.4M|
|APEX||Lyxor MSCI AC Asia Ex Japan UCITS ETF - Acc||$130.30||#N/A||#N/A|
|AERO||Svenska Aerogel Holding AB (publ)||$0.46||-13.21%||179.4M|
|CLWY||Calloway's Nursery, Inc.||$13.95||-16.27%||102.5M|
|BEBE||bebe stores inc||$4.95||#N/A||63.7M|
|SRGHY||Shoprite Holdings ADR||$14.28||-2.26%||137.8B|
|FRCOY||Fast Retailing ADR||$61.97||14.59%||8550.6B|
|MAKSY||Marks and Spencer Group ADR||$4.04||-29.86%||3.2B|
|LB||Laurentian Bank of Canada||$35.68||-19.64%||1.5B|
|RTW||RTW Venture Fund Ltd||$1.38||0.73%||283.5M|
|DBI||Designer Brands Inc||$11.20||-8.50%||712.7M|
|CTRN||Citi Trends, Inc.||$34.17||-21.16%||285.6M|
|CVS||CVS Health Corp||$86.47||-20.47%||113.6B|
|WBA||Walgreens Boots Alliance Inc||$37.34||-24.57%||32.3B|
|URBN||Urban Outfitters, Inc.||$29.45||4.84%||2.7B|
|AEO||American Eagle Outfitters Inc||$16.91||-24.41%||3.2B|
|SCVL||Shoe Carnival, Inc.||$28.40||-12.18%||770.8M|
|ANF||Abercrombie & Fitch Co||$29.96||-20.04%||1.5B|
|DLTH||Duluth Holdings Inc||$6.96||-51.77%||232.6M|
|BBY||Best Buy Co Inc||$90.00||-7.31%||19.9B|
|PLCE||Children's Place Inc||$46.86||-30.27%||572.9M|
|HVT||Haverty Furniture Companies, Inc.||$36.57||25.15%||589.1M|
|BOOT||Boot Barn Holdings Inc||$86.54||0.64%||2.6B|
|LOW||Lowe's Companies Inc||$217.03||-7.30%||131.2B|
|TJX||TJX Companies Inc||$79.97||14.55%||92.4B|
|LL||Ll Flooring Holdings Inc||$6.44||-53.93%||189.0M|
|HD||Home Depot Inc||$332.67||-8.81%||339.2B|
|ROST||Ross Stores Inc||$115.19||22.05%||39.6B|
|FND||Floor & Decor Holdings Inc||$99.05||-5.08%||10.5B|
|LULU||Lululemon Athletica Inc||$320.38||-3.02%||40.9B|
|TTS||Tintina Mines Ltd||$0.02||#N/A||918.1K|
|DXLG||Destination XL Group Inc||$7.36||57.94%||459.5M|
Examples of Retail Stocks
Below are some examples of retail stocks and brief overviews of how the companies operate.
- Amazon (AMZN) – Amazon has revolutionized the retail industry with its e-commerce platform and has continued to dominate the market through its strong brand, vast selection of products, and speedy delivery. In addition, Amazon has expanded into other areas such as cloud computing and advertising, which has helped to diversify its revenue streams.
- Costco (COST) – Costco operates a membership-based model and has a loyal customer base that is willing to pay for the convenience and value that Costco offers. Costco also has a strong reputation for offering quality products at low prices, which has helped to drive sales and boost profits.
- Home Depot (HD) – Home improvement and construction remain resilient industries, even during economic downturns. The company has a strong reputation for its wide selection of products, knowledgeable staff and strong online presence. The company has also been focusing on e-commerce and online services which is a great growth driver for the company.
- Target (TGT) – Target is a retail stock that has been performing well in recent years. The company has been investing in its e-commerce platform and store remodels, which has helped to drive sales and increase customer loyalty. Target also has a strong reputation for offering a wide selection of products at affordable prices, which has helped to attract and retain customers.
Overall, these are just a few examples of retail stocks that have stood out as strong investments. As always, it’s important to conduct your own research and consult with a financial advisor before making any investment decisions.
About the Retail Industry
The retail industry is a vast and dynamic sector that encompasses a wide range of businesses, from small mom-and-pop stores to large chain retailers. These businesses sell a wide variety of goods and services to consumers, including clothing, electronics, groceries, and more.
In recent years, the retail industry has undergone significant changes, particularly with the rise of e-commerce and online shopping. This has led to a shift in consumer behavior, with more and more people choosing to shop online rather than in brick-and-mortar stores. As a result, many traditional retailers have had to adapt to stay competitive, by investing in their online presence, improving delivery options and enhancing their in-store experience.
Another significant trend in the retail industry is the growth of omnichannel retail, which refers to retailers that have both an online and offline presence. This allows customers to shop in-store, online, or through a mobile app, and pick up their purchases in-store or have them delivered to their homes.
The retail industry also includes big-box retailers and discount stores, which offer a wide range of products at low prices. These retailers often have large store formats, and they tend to be located in suburban areas or out-of-town shopping centers.
Additionally, the retail industry includes specialty stores, which focus on a specific product category, such as sporting goods, electronics, or furniture.
Overall, the retail industry is a constantly evolving sector that is shaped by consumer behavior, technological advancements, and economic trends. Those retailers that are able to adapt to these changes and offer a convenient, seamless and personalized shopping experience will be the ones that thrive in the long term.
Factors to Consider Before Investing in Top Retail Stocks
The most significant factor to consider before investing in retail stocks is volatility. They swing multiple times of the actual movement in the economy. If the economy booms to a small extent, retail stocks usually grow manifold; and similarly, if the economy downticks just a bit, the negative impact on retail stocks is massive.
Investors can begin with Peter Lynch’s strategy to buy what you know, i.e., investing in retail stores that they visit and like. However, such investment must be backed with expensive fundamental research.
Many retail stores do well, even in bad times and others that perform poorly in good times. Therefore, the fundamentals of the company like earnings, margins, and revenue growth, valuation multiples including P/E ratio and P/S ratio must be researched before investing in the highly volatile and risky retail stocks.
Which Retail Stocks Should I Buy?
To make the selection easier for you, we have aggregated a list of the top retail stocks. The choice should be made based on the profit margins, earnings growth, and valuation multiples of the company, in addition to your investment goals.
Retail stocks are risky yet rewarding. If the stock selection is made efficiently, after considering the inherent volatility and fundamentals of the stocks, retail stocks can prove to add a lot of value to investors’ portfolios. Investors should also consider the rapid growth of online retailers and their impact on the overall retail market before choosing the top retail stocks.