The 3 Best Retail Stocks to Buy in April 2024
The best retail stocks to buy in April could be ripe for the picking amidst a transforming economic landscape. The past couple of years were marked by soaring inflation and interest rates, with consumers spending the bulk of expenditures on essentials. However, the tide is turning with the expected interest rate cuts later in the year. Moreover, according to an Economic Intelligence report, global retail sales could surge by 6.7%, including a 2% increase in volume following the deceleration in inflation. Therefore, with this encouraging backdrop, here are three top retail stocks you’d want to wager on now.
Walmart (WMT)
Walmart (NYSE:WMT) was at its resilient best last year. Despite the persistent inflationary pressures, it ended the year posting healthy growth across its top-and-bottom lines. Sales were up 5.7% last year, underpinned by a 4% bump in Walmart U.S. comparable sales and a 3.1% uptick in Sam’s Club comparable sales.
The company’s success is invariably linked to its sheer size and an operating model that continues to attract customer traffic. Moreover, its focus on essentials, including groceries and health and wellness, has helped mitigate the effects of inflation. In addition, its commitment to technological advancements and margin expansion have been major contributors to its rapid expansion.
Over the past couple of years, its top line has expanded by a whopping $78 billion, a testament to its operational prowess. Furthermore, eCommerce and international sales have risen rapidly in recent quarters. In the fourth-quarter (Q4) alone, the retail giant’s eCommerce and international sales increased by 23% and 17.6% year-over-year (YOY). Hence, with multiple growth catalysts in motion, WMT stock is essentially a no-brainer investment in the retail space.
Target (TGT)
Target (NYSE:TGT) is one of the top big-box retailers that’s masterfully expanded its retail repertoire to include groceries and other product lines to become a quintessential one-stop shop. This transformation has added to consumer convenience and positioned it as one of the leading players in the competitive retail landscape.
Despite facing challenges like retail theft, Target’s resiliency shines, evident in its encouraging results of late. In Q4, Target delivered solid revenues of $31.9 billion, beating estimates by $69.4 million. Moreover, its Q4 YOY sales jump of 1.70% marked a turnaround from the negative trend observed in the past few quarters. Additionally, its EPS of $2.98 in Q4 bested estimates by 57 cents and represented an impressive 57% improvement from the prior-year period.
Apart from its glowing financials, Target rewards its shareholders, as evidenced by its impressive streak of dividend raising for the past 55 consecutive years.
Hershey (HSY)
Confectionary giant Hershey (NYSE:HSY) has proven tenacious in navigating the tricky economic environment in the past year. Despite the record-high cocoa prices impacting its business in 2023, it ended the year in excellent fashion. Sales climbed a healthy 7% to $11.16 billion last year, while its net income shot up 13% to $1.86 billion, a testament to its robust brand loyalty and pricing power.
However, the impact of escalating cocoa prices on Hershey didn’t go unnoticed by its shareholders. HSY stock took a 24% hit in 2023, trading at a considerable discount to its historical pricing metrics. In addition to its attractive price, Hershey announced a 15% dividend hike to $1.37 per share in February, underscoring its commitment to shareholder rewards. Also, it yields a tremendous 2.40%, beating its 5-year average by almost 23%.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
