Black Friday marks the official start of the holiday shopping season. The sales event is expected to generate big revenues for US retailers. The market is hovering near highs, and retail stocks could perform over the next few months.
While Black Friday is known as a day for deal-hungry shoppers, it is also an excellent opportunity for investors to increase their holdings in retail stocks as the holiday season kicks off. Retail sales have steadily increased over the past two decades, and the trend could continue this year.
Retail stocks offer one way to play the market, but they can be expensive. If these retail stocks are too pricey for your budget, you should check out the Dork’s other hot stock lists. If you’re looking for cheap stocks, be sure to check out our top penny stocks lists. (learn more about penny stocks here):
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Best Retail Stocks to Buy Before Black Friday
Black Friday is two weeks away and marks the beginning of the holiday season. Here are the top retail stocks to buy before Black Friday.
Best Buy Co Inc. (BBY)
Best Buy aims to stay ahead of the competition by starting it’s Black Friday almost 5000 hours early. The company published a Black Friday ad last week, revealing several discounts for November.
Best Buy’s stock has had a fantastic 2019 so far as it is up by 44% year-to-date. The stock started the year trading at $53 per share but trades on Friday, November 15, at $75.60 per share. Best Buy will report its next earnings on November 26, with analysts expecting an EPS of $1.03.
Amazon has had a rough few weeks but continues to be a leader in the retail and eCommerce space. Amazon’s stock is up by 13% since the start of 2019 but could be boosted during the holiday season. The stock is trading at $1,754 per share, up by $0.32% at Friday’s pre-market trading.
Amazon recently lost a $10 billion cloud contract after the Pentagon decided to award the contract to Microsoft. It also suffered another blow after the sportswear giant, Nike, halted the sale of its merchandise on Amazon. Despite these disappointments, Amazon could command a sizeable chunk of the Black Friday sales due to its position as a leader in the retail sector.
Walmart Inc. (WMT)
Walmart has been providing Amazon with fierce competition in the retail sector. Its stock should be on your ‘buy’ list before Black Friday. Walmart’s stock has outperformed Amazon’s so far this year, rising by over 29% since the start of 2019.
The retailer published its third-quarter earnings on Thursday, November 14. The earnings beat analysts’ expectations as strong grocery business boosted online sales. The EPS for Q3 was $1.16, higher than the $1.09 expected.
Online sales grew by 41% in the third quarter, with the US same-store sales up by 3.2%. This could be an indicator of a strong holiday season for Walmart.
Target Corporation (TGT)
Target’s stock is the most profitable so far in 2019, having surged by 68% year-to-date. The stock was trading at $66 per share at the beginning of the year but now trades at $111.50 after rising by 0.35% at Friday’s pre-market trading session.
Target has boosted its e-commerce business over the past year. The discount store is hiring more staff and adding tech assets ahead of Black Friday and other holiday sales. Their commitment to the holiday period saw them invest over 500,000 more hours in training compared to the same time last year.
Target will publish its third-quarter earnings in the coming days. Their Q3 revenue is expected to reach $18.47 billion, up by 3.6% from the same quarter of 2018. Target’s full-year fiscal 2019 sales are expected to increase by 4%, which is higher than the 3.6% recorded last year.
More Retail Stocks to Buy Now
Black Friday is a few days from now and this could be the best time to buy retail stocks as we head into the holiday season. Stay tuned to the Dork to keep track of the top breakout stocks to trade. Follow Stock Dork on Twitter and Facebook to keep up with all the latest stock market news, and don’t forget to sign up for Dork Alerts to get all the hottest stock picks, insights, and analysis delivered right to your inbox.