Six Best Retail Stocks: Which Should You Invest In?
Written by
Gina Hagler
Edited by
Maria Concepcion
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Deciding which retail stocks to invest in can be difficult simply because there is a seemingly endless number to choose from. The benefit of retail stocks is that investors become partial owners of their selected businesses. You might even be inclined to invest in a brand that you are a regular consumer — of course, the fact that it serves you well doesn’t make it a good choice for your portfolio. As a result of the pandemic, certain retailers like e-commerce stores benefited from everyone being at home, while travel and outdoor-centric entertainment retailers struggled or even filed for bankruptcy. Moreover, the ongoing consumer disincentivization by way of inflation makes it all the more important to pick the best retail stocks. Here are 6 excellent choices.Â
Amazon (AMZN)
Amazon has been the premier e-commerce retailer for years now, and the recent purchase of Whole Foods Market only increased its consumer viability. They are also a leader in cloud computing. Because Amazon is so massive, it is able to survive supply chain concerns where other smaller retailers cannot.
Home Depot (HD)
Homeowners had a DIY streak during the pandemic; while this has died down, Home Depot still serves the professional contractors that homeowners may have avoided. In the end, the world of home improvement isn’t going anywhere – so long as someone is holding a tool, the company maintains its presence.
Etsy (ETSY)
Etsy is growing despite tending to be in Amazon’s shadow. Combine its focus on craftsmanship and handmade items with unique features like AI-powered personalized gifting, and you have a less mass-market retailer that maintains its niche. They have a recorded progression of profitability.
Lovesac (LOVE)
Lovesac stands out in the world of home furnishing with its sustainability ethic and direct-to-consumer model. Its recent YOY net sales blew past predictions, and its strong profit margins suggest a profitable future.
Ulta Beauty (ULTA)
Ulta Beauty has been performing beyond sales expectations with the ever-growing demand for skincare and beauty products. Not only that, their ROE is an impressive 62.6% – 447% greater than the median.
Costco (COST)
Costco benefits from its global membership warehouses and variety of branded and private-label goods. The corporation has a long-standing history of great ROE performance and stable growth.
If you’re interested in a different retailer, you’ll want to ensure its online sales presence is solid and its balance sheet contains cash and manageable debt. And remember, past performance is not a guarantee of future performance.
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