Retail stocks to watch: HD, DLTR among top five in spotlight

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Retail stocks to watch: HD, DLTR among top five in spotlight

 Retail stocks to watch: HD, DLTR among top five in spotlight
Image source: Blue Planet Studio,Shutterstock

Highlights

  • Home Depot, Inc. (NYSE: HD) revenue rose over 10% in Q4, FY21.

  • Dollar Tree Inc. (NASDAQ: DLTR) will report its fourth quarter fiscal 2021 results on March 2.

  • Bath & Body Works, Inc. (NYSE: BBWI) expects its Q1, FY22 earnings to be between US$0.47 and US$0.55 per share.

The retail sector companies supply durable and non-durable consumer goods. These stocks saw mixed fortunes over the past year. The global supply chain disruptions and rising material and freight costs hit profit margins.

In December, the consumer price index rose 0.5% from the prior month and 7% annually, the fastest increase since June 1982. Here we explore top retail stocks worth watching this year.

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Home Depot, Inc. (NYSE: HD)
Home Depot is one of the leading home improvement retailers based in Atlanta, Georgia. It provides construction tools and other related products to consumers.

Its shares traded at US$309.92 at 11:55 am ET on February 25, down 1.03% from their previous close. The stock gained 21.46% over the past 12 months.

It has a market cap of US$323,52 billion, a P/E ratio of 19.96, and a forward one-year P/E ratio of 19.53. Its EPS is US$15.52.

The 52-week highest and lowest stock prices were US$420.61 and US$246.59, respectively. Its trading volume was 3,666,474 on February 25.

The company's total sales surged 10.7% YoY to US$35.7 billion in Q4, FY21, while its net earnings came in at US$3.4 billion, or US$3.21 per diluted share. For the full fiscal 2021, sales rose 14.4% YoY to US$151.2 billion.

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Top 5 retail stocks to explore in 2022

Source: Pixabay

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Lowe's Companies, Inc. (NYSE: LOW)

Lowe's is a retail company based in Mooresville, North Carolina. It provides home improvement products like household appliances, lighting, etc.

The stock traded at US$217.395 at 12:44 pm ET on February 25, up 1.87% from its previous close. It rose 34.2% over the past 12 months.

Its market cap is US$144,47 billion, the P/E ratio is 18.01, and the forward one-year P/E ratio is 16.23. Its EPS is US$11.97. The stock saw the highest price of US$263.31 and the lowest price of US$150.84 in the last 52 weeks. Its share volume on February 25 was around 2,016,016.

The total sales rose 5% YoY to US$21.33 billion in Q4, FY21, while its net earnings were US$1.20 billion, or US$1.78 per diluted share. For fiscal 2021, the company's sales were US$96.25 billion.

For fiscal 2022, it expects total sales to be between US$97 billion and US$99 billion.

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Dollar Tree Inc. (NASDAQ: DLTR)

Dollar Tree is a discount chain retailer based in Chesapeake, Virginia. It offers consumers products like hardware, automotive supplies, apparel, etc.

The shares of the company traded at US$140.37 at 12:49 pm ET on February 25, up 3.11% from their closing price. Its stock value surged 41.9% over the past 12 months.

The firm has a market cap of US$31,59 billion, a P/E ratio of 23.73, and a forward one-year P/E ratio of 24.40. Its EPS is US$5.92. The 52-week highest and lowest stock prices were US$149.37 and US$84.26, respectively. Its trading volume was around 652,901 on February 25.

The company's net sales rose 3.9% YoY to US$6.42 billion in Q3, FY21. Its net income was US$216.8 million, compared to US$330 million in Q3, FY20.

It will report its fourth quarter fiscal 2021 results on March 2, before the opening bell.

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Ulta Beauty, Inc. (NASDAQ: ULTA)

Ulta Beauty is a beauty salon firm based in Bolingbrook, Illinois. It provides cosmetics, fragrances, haircare, and other related products.

The stock of the company traded at US$373.53 at 12:56 pm ET on February 25, up 0.12% from its previous close. The ULTA stock soared 15.8% over the past 12 months.

The company's market cap is US$20,2 billion, the P/E ratio is 23.97, and the forward one-year P/E ratio is 21.73. Its EPS is US$15.63.

The stock saw the highest price of US$422.43 and the lowest price of US$297.29 in the last 52 weeks. Its share volume on February 25 was around 168,543.

The company's net sales rose 28% YoY to US$1.99 billion in Q3, FY21. Its net income came in at US$215.3 million, or US$3.94 per diluted share, compared to US$74.8 million, or US$1.32 per diluted share in Q3, FY20.

It will report its fourth quarter fiscal 2021 results on March 10, after the closing bell.

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Retail Stocks: HD, LOW, DLTR, ULTA, BBWI

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Bath & Body Works, Inc. (NYSE: BBWI)

Bath & Body Works is a retail store chain operator that provides soaps, lotions, fragrances, and other related products. It is based in Reynoldsburg, Ohio.

The shares of the company traded at US$53.90 at 1:00 pm ET on February 25, up 1.43% from their previous closing price. Its stock value ticked up 27.7% over the past 12 months.

The firm has a market cap of US$13,1 billion, a P/E ratio of 10.94, and a forward one-year P/E ratio of 10.98. Its EPS is US$4.92.

The 52-week highest and lowest stock prices were US$82.00 and US$49.91, respectively. Its trading volume was around 1,519,072 on February 25.

The company's total sales jumped 11% YoY to US$3.02 billion in Q4, FY21, while its net earnings came in at US$594.86 million, or US$2.27 per diluted share. For fiscal 2021, the company's sales soared 22% YoY to US$7.88 billion.

For the first quarter of fiscal 2022, the company expects its EPS from continuing operations to be between US$0.47 and US$0.55.

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Bottomline

The S&P Retail Select Industry rose 6.73% over the past 12 months. Experts say the sector will likely see steady growth from the second half of 2022. The global markets are currently choppy on various macroeconomic and geopolitical concerns.

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