If you’ve followed the news lately, you’ve noticed the stock market has had its fair of ups and downs as of late.
If you’re interested in investing, this may have caused you some trepidation. While no stock offering is a slam dunk, many industry experts feel you can’t go wrong with retail stocks.
Even with eCommerce taking over our spending habits — and our bank accounts, some retailers have jumped on the online shopping bandwagon and ran with it.
Buying a house used to be the safest investment. But when it comes to the stock market, retail stocks are a smart choice. Especially, if you’re able to analyze it to make effective investments.
We’ve done some of this work for you. We’re giving you five retail stocks to buy now if you’re looking to invest.
Target may not be as big a retailer as Walmart or Amazon, but they still make the list.
If you’re too loyal to Sam Walton’s old five and dime to invest in Target, Home Depot is another solid choice for retail stocks in the big-box sector.
Where Target wins the battle is with employee culture. When Amazon raised their minimum wage to $15, Target led the band of followers, promising the same by 2020.
They were also one of the first brick-and-mortars to do so. So, how do we rank them above Amazon and Walmart?
With Walmart, it’s a simple numbers game. Their stocks declined over the last year. Target’s (and Home Depot’s) is on the rise.
When it comes to Amazon, it’s all about the details. Amazon is a logistics company that is a retail reseller. Target is a pure retailer.
The footwear behemoth’s revenue increased by a whopping 10% last quarter. That helps their stock price. But, it’s how they did it that’s worth noting.
Nike’s gone all-in on a revolutionary marketing campaign. They grew their digital sales footprint by 41%. And, they’re operating at a 43% profit margin.
Nike is head and shoulders above every other retailer in their category. They’re also growing in China — a place that’s opted in the past to stick with their own Chinese footwear brands.
Another beneficiary of Walmart’s 2018 downturn is Costco. Last year, the company shuttered 63 Sam’s Club locations nationwide. This opened up the playing field for Costco to gain a firmer grasp on the bulk big-box sector.
As a result, people flocked to the warehouse retailer and the Costco stock price soared. It doesn’t hurt that they care about their employees, too.
Amazon announced their minimum wage hike only after Costco raised theirs to $14 over the summer.
4. American Eagle Outfitters
Didn’t expect to see AE on the list? They’ve quietly made a huge impact among the clothing retail sector.
Are you ready for this? For 15 straight quarters, American Eagle has had positive comps growth.
Their lingerie brand, Aerie, is taking on Victoria’s Secret head-on, driven by their body-positive marketing campaign.
When sales slowed down, they didn’t slash their prices with huge markdowns. Instead, they focused on expanding their eCommerce platform.
They put emphasis on their affordable, yet high-quality denim products. And, they set their sights on male shoppers.
For the full-year review, industry experts expect AEO will end up with a 6% annual revenue increase and Aerie at 27%.
Want More Info on the Stocks to Buy Now?
Being cautious when it comes to investing money is a smart move. Yet it doesn’t mean you shouldn’t invest at all!
The list of retail stocks to buy now will get you started on the right path. But, if you need more advice, we can help.
Check out more of our content, like this post on gifting investments.