The retail industry offers a variety of finished products, both durable and non-durable consumer goods, to individual consumers and homes. The industry also sells services. Products sold by retailers include apparel, electronics, furniture, kitchen utensils, sporting goods, books and toys. Some even sell groceries, medicines, auto parts and gardening supplies. The industry includes emerging e-commerce companies as well as traditional physical retailers. Largest retailers include Walmart Inc. (WMT), Amazon.com Inc. (AMZN), and Costco Wholesale Corp. (COST). During the COVID-19 pandemic, retailers’ revenue and revenue performance differed significantly. While many focused retailers in physical stores are suffering from a significant decline, retailers with a strong e-commerce presence are thriving.
Retail stocks, represented by SPDR S & P Retail ETFs (XRTs), significantly outperform a wide range of markets. XRT has provided 85.9% total revenue over the last 12 months, well above the Russell 1000’s 37.1% total revenue. These market performance figures and all statistics in the table below are current as of September 10, 2021.
Here are the top three retail stocks with the highest value, the fastest growth, and the most momentum.
These are the retail stocks with the lowest price-earnings ratio (P / E) for 12 months. A low rate of return on stock prices indicates that you pay less for every dollar you make, as profits can be returned to shareholders in the form of dividends or repurchases.
|Highest value retail stock|
|Price ($)||Market capitalization ($ B)||12-month trailing price-earnings ratio|
|Qurate Retail Inc. (QRTEA)||10.37||4.2||3.1 3.1|
|Companhia Brasileira De Distribuicao (CBD)||5.18||1.4||3.6|
|eBay Inc. (EBAY)||72.56||47.2||3.9|
Source: Y Charts
- Qurate Retail Inc. : Qurate Retail is an e-commerce service provider. The company has partnered with television networks, e-commerce sites, social media, mobile applications and similar platforms to provide video and digital commerce services worldwide. Qurate operates brands such as QVC, HSN, Zulily and Frontgate. The company announced in mid-July that it had appointed David Rawlinson II as President and CEO. As of October 1, 2021, Rawlinson, who has extensive leadership experience in a variety of companies, will replace Mike George.
- Companhia Brasileira De Distribuicao: Companhia Brasileira De Distribuicao is a Brazilian-based retailer. We sell food, clothing, home appliances, electronics and a variety of other items through chains of hypermarkets, supermarkets, specialty stores and department stores.
- eBay Inc. : eBay is an e-commerce company that operates an online marketplace that connects new and second-hand buyers and sellers around the world. eBay has approximately 1.5 billion live lists, 19 million sellers, and 159 million active buyers worldwide.
These are ranked by a growth model that scores companies based on a 50/50 weighting of year-over-year rate of return growth in the most recent quarter and year-on-year earnings per share (EPS) growth in the most recent quarter. It is a top retail stock. Both sales and revenue are key factors in a company’s success. Therefore, ranking a company by only one growth indicator can make it more vulnerable to accounting anomalies (such as tax law changes and restructuring costs) for the quarter, and one of the numbers can be non-representative to the business. There is sex. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.
|The fastest growing retail stock|
|Price ($)||Market capitalization ($ B)||EPS growth rate (%)||Revenue growth (%)|
|Dave & Buster’s Entertainment Co., Ltd. (PLAY)||35.85||1.7 1.7||Not applicable (see company description)||642.9|
|Luckin Coffee Co., Ltd. (LKNCY)||16.10||4.1||Not applicable (see company description)||521.0|
|Shift Technologies Inc. (SFT)||8.13||0.7||Not applicable (see company description)||377.3|
Source: Y Charts
- Dave & Buster’s Entertainment Co., Ltd .: Dave & Buster’s Entertainment owns and operates large venues across North America that combine entertainment and dining for adults and families. In addition to food and drink, the entertainment center offers a variety of entertainment attractions centered around playing games, watching live sports and other TV events. Dave & Buster’s recently announced second quarter financial results for Fiscal Year 2021 (FY) ended on August 1, 2021. The company’s net income was $ 52.8 million, a significant recovery from a net loss of $ 58.6 million in the year-ago quarter. Revenue increased 642.9% year-on-year. The company’s EPS turned positive in the most recent quarter from negative in the same period last year, so the above table could not calculate EPS growth.
- Luckin Coffee Co., Ltd .: Luckin Coffee is a China-based holding company primarily engaged in the coffee retail business. Its products include freshly brewed drinks, juices and light meals and are run primarily through mobile apps and pickup stores. In December 2020, the company fined $ 180 million from the US Securities and Exchange Commission (SEC) for “intentionally and substantially” overestimating 2019 earnings and underestimating net losses. it was done. Luckin agreed to pay the fine, but did not approve or deny the claim. A few months later, in February 2021, the company filed for bankruptcy protection in the United States. Luckin said the outlet store is still open and the bankruptcy filings in Chapter 15 are not expected to impact day-to-day operations. The company reported negative EPS in the last quarter, so the above table could not calculate EPS growth.
- Shift Technologies Inc. : Shift Technologies is a car e-commerce platform for buying and selling used cars. The platform provides services related to used car purchases, such as helping customers find a car, organizing test drives, providing digital payment transactions, and vehicle protection products. The company reported negative EPS in the last quarter, so the above table could not calculate EPS growth.
These are the retail stocks with the highest total returns in the last 12 months.
|Momentum retail stocks|
|Price ($)||Market capitalization ($ B)||12-month trailing total return (%)|
|GameStop Corp. (GME)||190.41||14.6||2,960 *|
|Destination XL Group Inc. (DXLG)||6.76||0.4||2,380|
|Luckin Coffee Co., Ltd. (LKNCY)||16.10||4.1||603.1|
|Russell 1000 index||Not applicable||Not applicable||37.1|
|SPDR S & P Retail ETF (XRT)||Not applicable||Not applicable||85.9|
Source: Y Charts. * Exceptions to normal outlier rules. See company description for more information.
- GameStop Corp. : GameStop operates a chain of electronic games and software stores nationwide. The company sells video game hardware, software, and accessories. GameStop appointed Amazon.com Inc. (AMZN) executive Matt Furlong as CEO in early June and entered into force on June 21, 2021 with Mike Recupero as Chief Financial Officer. Announced that he was appointed. Amazon’s senior position overseeing growth initiatives. GameStop is included in the Momentum section, with the exception that Investopedia typically excludes companies with a total 12-month trailing return of more than 2,500%. This is included because the astronomical rise in stock prices is well documented and serves as a useful lesson on various factors that can help boost stock prices, such as bullish commentary on the Reddit forums and sometimes jokes. .. / wallstreetbets.
- Destination XL Group Inc. : Destination XL Group is an omni-channel retailer of large and tall men’s clothing. The company operates an e-commerce platform and retail and outlet stores in the United States and Canada.
- Luckin Coffee Co., Ltd .: See above for company description.
The comments, opinions and analyzes contained in this document are for informational purposes only and should not be considered individual investment advice or investment recommendations …