Aug 11, 2020 (StockMarket.com via COMTEX) -- As We Continue To Move Past The Coronavirus Pandemic, Are Investors Bullish On These 2 Top Retail Stocks?
Retail stocks have not been in the best position in recent times. In many places, shopping in person is just a fantasy. The uncompleted coronavirus pandemic has caused retail locations in many places to close. Some retail stores had to close permanently because of the effects of the pandemic. This means that top retail stocks to buy have been down much more than they ever have been. Some sectors have been able to fully recover, but the retail one has been tough.
That isn't to say no retail stocks have recovered. Many essential stores that stayed open during the pandemic benefitted from this. An example of retail stocks that have been able to move higher in the market is Walmart ( WMT Stock Report ) and Target ( TGT Stock Report ). When news about reopening is released, retail stocks will rise. When news about a coronavirus vaccine is outed, it can cause retail stocks to rise as well.
So there are many retail stocks to watch in the market. The world of retail stocks is volatile, but investors are still making a profit with many. That is why it is important to do proper research and discover the best retail stocks to watch. Today, we are going to look at two trending retail stocks in the market.
Best Retail Stocks To Buy [Or Sell] In August: Foot Locker
The first retail stock to watch is Foot Locker Inc. ( FL Stock Report ) due to its recent rise in the market. Foot Locker is a footwear and sports retailer based in the United States. The company was founded in 1974 and has grown to be a large footwear retailer since. The company has 3,000 stores around the world. 70% of Foot Locker's products are Nike. In 2019 alone Foot Locker brought in nearly $8 billion in revenue. Foot Locker is ranked number 385 on the Fortune 500 list of companies.
On August 7 [th] , FL stock was at $27 a share on average. But overnight, FL stock price went up to $29.50 a share. This is because Foot Locker released second quarter profits that were surprisingly positive. The company has had an increase in sales because of reopening. Before the pandemic FL stock was at $40 a share, so it has not recovered yet. But a rise like this in FL stock price could mean good things for the future of it.
If Foot Locker's third quarter looks even better than its second quarter, then FL stock can rise even more. Even when reopening news is put out FL stock price has the ability to go higher. When this pandemic comes to a close, there will be many more retail stocks on the rise. When people are more comfortable with in person shopping it will be great for FL stock. This is why FL stock is a retail stock to watch.
Best Retail Stocks To Buy [Or Sell] In August: Macy's
The second retail stock to watch is Macy's Inc. ( M Stock Report ) due to its recent momentum in the market. Macy's was founded in 1858 and has grown to be a retail giant. As of May 2020 there is 552 existing Macy's retail locations. Its department stores sell a variety of items, mainly clothing. Macy's brought in $24.97 billion in revenue back in 2018. This places Macy's at number 118 on the Fortune 500 list of companies. Obviously the pandemic has had a bad effect on Macy's.
On August 7 [th] , M stock was at $6.25 a share on average. When the market opened again on August 10 [th] , M stock rose to $7 a share on average. This is because of Macy's upwards momentum in the market in recent times. But M stock price is not close to recovery yet. Before the pandemic, M stock was at $16 a share on average. If stores can reopen and people begin going to retail locations again, M stock price could rise back up in the market.
The potential for M stock to rise even more is the reason that it is a retail stock to watch. Things as simple as vaccine progress or reopening can drive these two retail stocks up. That is why FL stock and M stock are potentially retail stocks to buy. It is unsure what will happen to these retail stocks in such a volatile market. But when the world is in more of a normal state there will be room for many retail stocks to recover.
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