Top 5 US retail stocks to watch amid holiday shopping season

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Top 5 US retail stocks to watch amid holiday shopping season

 Top 5 US retail stocks to watch amid holiday shopping season
Image source: Kamil Macniak, Shutterstock

Highlights

  • Amazon expects its Q4, FY21 net sales to be between US$130 billion and US$140 billion.
  • Lowe's expects its full fiscal 2021 sales to be about US$95 billion.
  • US retail sales surged 0.3% in November, after increasing 1.8% in October.

Many investors typically invest in retail stocks as it gives them the opportunity to own a stake in the companies they shop from. Meanwhile, the Covid-19 pandemic has fueled gains in many retail firms, while hurting others. For instance, the e-commerce sector witnessed a boom, as consumers avoided shopping from stores.

Consumer spending that is generally gone for travel or entertainment purposes, have been used for home improvement activities and on electrical gadgets during the pandemic. The retailers that are rebounding from the pandemic are witnessing shoppers return, and consumer spending is also increasing as the economy is recovering.

Here we explore some of the retail stocks that may continue to gain investors' attention amid the holiday season.

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Amazon.com, Inc. (NASDAQ: AMZN)

Amazon is a technology firm specializing in the e-commerce sector, cloud computing, and other related services. It is one of the largest companies in the world and is based in Seattle, Washington.

The shares of the company closed at US$3,466.30 on December 15, up 2.5% from their closing price of December 14. Its stock value increased by 8.78% YTD.

The firm has a market cap of US$1.75 trillion, a P/E ratio of 67.81, and a forward P/E one year of 82.91. Its EPS is US$51.12.

The 52-week highest and lowest stock prices were US$3,773.08 and US$2,881.00, respectively. Its trading volume was 3,789,713 on December 15.

The company's net sales surged 15% year-over-year (YoY) to US$110.8 billion in Q3, FY21. Its net income was US$3.15 billion, as compared to US$6.33 billion in Q3, FY20. The firm expects its Q4, FY21 net sales to be between US$130 billion and US$140 billion.

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AMZN, ULTA, HD, TGT, LOW

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Ulta Beauty, Inc. (NASDAQ: ULTA)

Ulta Beauty is a Bolingbrook, Illinois-based beauty salon firm that operates a chain of beauty stores. It offers cosmetics, nail products, bath and body products, and other related products for consumers.

The stock of the company closed at US$394.61 on December 15, up 1.27% from its previous closing price. The ULTA stock rose 39.7% YTD.

The market cap of the company is US$21.35 billion, the P/E ratio is 25.25, and the forward P/E one year is 22.72. Its EPS is US$15.63.

The stock saw the highest price of US$417.85 and the lowest price of US$258.00 in the last 52 weeks. Its share volume on December 15 was 931,952.

The company's net sales were US$1.99 billion in Q3, FY21, as compared to US$1.55 billion in the year-ago quarter. Its net income was US$215.3 million, as compared to US$74.8 million in Q3, FY20.

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Home Depot, Inc. (NYSE: HD)

Home Depot is one of the leading home improvement firms in the US that offers tools, construction products, and other related services to consumers. It is based out of Atlanta, Georgia.

The shares of the company closed at US$407.81 on December 15, up 1.39% from their closing price of December 14. Its stock value surged 54.52% YTD.

The firm has a market cap of US$425.85 billion, a P/E ratio of 27.26, and a forward P/E one year of 25.97. Its EPS is US$14.96.

The 52-week highest and lowest stock prices were US$420.61 and US$246.59, respectively. Its trading volume was 4,421,435 on December 15.

The company's net sales surged 9.8% YoY to US$36.82 billion in Q3, FY21. Its net earnings were US$4.12 billion, as compared to US$3.43 billion in Q3, FY20.

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Target Corporation (NYSE: TGT)

Target Corporation is one of the largest retail firms in the United States that offers a range of products like groceries, apparel, etc., for consumers. It is based in Minneapolis, Minnesota.

The stock of the company closed at US$236.65 on December 15, up 0.58% from its previous closing price. The TGT stock soared 33.23% YTD.

The market cap of the company is US$113.38 billion, the P/E ratio is 17.41, and the forward P/E one year is 17.84. Its EPS is US$13.59.

The stock saw the highest price of US$268.98 and the lowest price of US$166.82 in the last 52 weeks. Its share volume on December 15 was 3,433,544.

The company's total revenue surged 13.3% YoY to US$25.65 billion in Q3, FY21. Its net earnings came in at US$1.48 billion, as compared to US$1.01 billion in Q3, FY20.

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Retail stocks to explore amid the holiday season

Source: Pixabay

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

Lowe's is a home improvement retail firm based in Mooresville, North Carolina. It offers appliances, tools, lighting, and other related products for consumers.

 

The shares of the company closed at US$257.54 on December 15, up 2.01% from their closing price of December 14. Its stock value jumped 60.58% YTD.

 

The firm has a market cap of US$173.51 billion, a P/E ratio of 22.38, and a forward P/E one year of 21.20. Its EPS is US$11.51.

 

The 52-week highest and lowest stock prices were US$263.31 and US$150.84, respectively. Its trading volume was 4,939,283 on December 15.

 

The firm projected its full fiscal 2021 sales to be around US$95 billion. The company's net sales were US$22.91 billion in Q3, FY21, as compared to US$22.30 billion in the year-ago quarter. Its net earnings were US$1.89 billion, against an income of US$692 million in Q3, FY20.

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Bottom line:

US retail sales rose less than anticipated in November, following a surge in the previous month as Americans started their shopping early to avoid the empty shelves for the holiday season. US retail sales increased by 0.3% in November, following an increase of 1.8% in October, the Commerce Department reported on Wednesday, December 15. On a YoY basis, retail sales soared 18.2% in November.

 

 

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