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April 15, 2021, 1:40 p.m. EDT

4 Hot Retail Stocks To Watch In April

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Costco Wholesale Corporation

Costco is a multinational retailer that operates a chain of membership-only big box retail stores. As of 2020, Costco is the fifth largest retailer in the world. It also ranks No. 10 on the Fortune 500 rankings of the largest U.S. corporations by total revenue. It operates 808 warehouses across the globe and also has a commendable e-commerce site. COST stock currently trades at $369.18 as of 1:29 p.m. ET. Yesterday, the company announced that it has increased its quarterly cash dividend to $0.79 per share.

Last week, the company reported its March sales results. In detail, Costco reported that net sales for the month of March were $18.21 billion. 57.7% of its comparable sales came from its e-commerce segment. The company has consistently produced higher annual same-store sales over the years.

Costco also has a good long-term strategy. Firstly, Costco is discounting the wage premium that it paid workers during the pandemic. While it is permanently raising wages, this could still result in hundreds of millions of annual savings compared to the last year. Secondly, management has been increasing sales and profitability over the long term as well. Given all of this, will you consider COST stock as a top retail stock to buy?

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Target Corporation

Last but definitely not least, we have retail giant Target. In brief, the company serves consumers out of nearly 1,900 stores across the nation. Similar to most of its peers in the retail business, Target continues to rely heavily on its online services. Notably, the company's digital sales revenue increased by nearly $10 billion in 2020. According to Target, this is thanks to a 235% year-over-year surge in its same-day services revenue. As one of the largest retailers in the U.S. now, Target would be another go-to for investors looking to bet on the retail industry. In fact, TGT stock is looking at gains of over 90% in the past year and currently trades at $204.46 as of 1:28 p.m. ET.

Despite the roaring success of its pandemic-friendly services, Target does not seem to be resting on its laurels yet. Earlier today, COO John Mulligan revealed plans to expand and optimize the company's current delivery network this year. Diving right into it, Target is currently testing new ways to deliver online orders in Minneapolis. This is being done with the help of special sorting facilities and three key logistic companies it acquired previously.

In short, all this allows Target further trim delivery times, helping it compete with larger rivals. Whether this helps with TGT stock's long-term growth potential or not remains to be seen. All in all, would you consider investing in TGT stock right now?


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