Stocks

4 Stocks to Tap Rising Demand in Retail Discount Stores Space

The COVID-19 outbreak has brought about a major shift in consumers’ buying behavior and spending pattern. With the pandemic taking a toll on employment and household income, consumers are left with no option but to curtail spending. Definitely, measures undertaken to support households and the resumption of economic activities provided some relief but consumers’ hunt for better bargains continue.

Under the current circumstances, people have been showing a preference for discount stores for essentials and other household needs. A differentiated product range resonates well with customers’ spending habits. No wonder, the strategy to sell products at discounted prices has helped industry players expand customer base amid the pandemic.

That said, industry participants have been focusing on deepening engagements with consumers, expanding merchandise assortments, and enhancing digital and data analytics capabilities. They have been making strategic investments to provide consumers fast, convenient and safe shopping experience, be it offline or online.

Keeping in mind consumers’ product preferences and growing inclination toward online shopping, thanks to social distancing and greater stay at-home trends, discount players have been replenishing shelves with in-demand merchandise, and expanding delivery options — curbside pickup or ship-to-home orders — and contactless payment solutions. The companies have also been investing in renovation, improved checkouts and mobile point-of-sale capabilities to keep stores relevant.

It comes as no surprise that discount retailers have succeeded in creating a niche in the retail space. Here we have highlighted four discount retailers that have been gaining from coronavirus-led spike in demand.

4 Prominent Players

Target Corporation TGT: This general merchandise retailer has been making investments to enhance omni-channel capacities, come up with new brands, and remodel or refurbish stores to cater to consumer demand and behavior in the new normal. Markedly, this Zacks Rank #1 (Strong Buy) company witnessed sturdy market-share gains in all

Continue Reading

New Home Sales Strongest Since 2006: Top 7 Housing Stocks

Sales of new single-family homes exceeded 1 million in August 2020, marking the highest level since September 2006. The metric, which has been rising for four consecutive months, exceeded analysts’ expectation by 13.6%.

The U.S. housing market has shown a resilient performance over the past few months despite ambivalent market predictions and fears of a second wave of the virus. Not only did the industry offset these COVID-19-related headwinds but also tackled lumber price swings, mortgage delinquencies, U.S.-China trade spat, labor shortage and inflating land prices.

This industry has experienced a strong V-shaped recovery since May and its growth is now exceeding pre-pandemic levels fueled by the work-from-home initiative and record low mortgage rates.

Since May, the Zacks Building Products – Home Builders industry has improved 57.1% compared with the Zacks Construction sector and S&P 500 composite’s 35% and 14.6% rally, respectively.

Inside the Numbers

August new home sales increased 4.8% to a seasonally adjusted annual rate of 1,011,000 from an upwardly-revised July rate of 965,000 units. Also, the sales pace was 43.2% higher than the year-ago period.

Regionally, the metric rose in Northeast and South (accounting for bulk of transactions) by 5% and 13.4%, respectively. Sales in the Midwest and West, however, dropped 21.4% and 1.7%, respectively, in August. Nonetheless, sales in all the four regions increased in double digits from the August 2019 level.

Median sales price in August was $312,800, which fell 4.6% month over month and 4.3% from the year-ago level. Average sales price of $369,000 also declined 0.8% from the prior month and 6% from August 2019.

August housing inventory decreased 3.1% from July and 13.2% from the year-ago period to 282,000. It would take just 3.3 months to deplete the current supply of homes, down from 3.6 months in July and 5.5 months in

Continue Reading

6 Home Improvement Stocks to Spruce Up Your Portfolio

Home improvement companies are having a moment.

All around the country people remain locked up at home, staring at the same four walls day in and day out because of the pandemic. The desire to improve one’s home, the need for something new and the sheer monotony of remaining indoors all day have led to a surge of interest among consumers in home improvement projects. Do-it-yourself projects and renovations are on the rise around the country. Companies that can supply customers with everything they need to spruce up their homes are enjoying impressive gains as a result. In fact, all six of the companies on this list have enjoyed tremendous growth over the last few months — and the long-term tailwind of an improving housing market gives all six of these home improvement stocks an excellent opportunity to enjoy impressive returns well into the future.

Home Depot (ticker: HD)

Thanks to the huge number of homeowners looking to do a little renovating, Home Depot’s comparable store sales shot up 23.4% year over year in the second quarter. In fact, the second quarter was a blowout across the board; the company reported a 100% increase in digital sales, as well as a 10.1% increase in the average customer ticket. Online or offline, people are turning to Home Depot for their renovation needs more than ever, and buying more per transaction — that’s a winning combination for Home Depot and its shareholders. While Home Depot’s forward price-earnings ratio sits at a relatively high 24.7, investors shouldn’t fret, given the company’s recent performance and future prospects. A 2.13% dividend yield only makes an investment in Home Depot that much sweeter.

Lowe’s (LOW)

Unlike many companies on the market, Lowe’s has had an excellent 2020. Shares have risen nearly 40% year to date, hitting

Continue Reading

Home Improvement Stocks Vie With Tech for an Investor Reckoning

Florida Residents Prepare For Hurricane Dorian

Photographer: Christina Mendenhall/Bloomberg

Global tech stocks aren’t the only ones due an investor checkup. Home improvement companies have also surged during the pandemic, and it’s fair to ask if this is as good as it gets.

An equal-weighted basket of 30 of the world’s biggest home improvement companies is up 23% this year, easily besting the 2% rise in the MSCI AC World Index, according to data compiled by Bloomberg. The gauge has almost doubled from its March lows, outpacing even the 63% rise in the high-flying Nasdaq-100 Index.

The gains have left stocks in the basket — including U.S. giant Home Depot Inc., Kingfisher Plc from the U.K. and Germany’s Hornbach Holding AG — trading on an average of 25 times forward earnings, up from 19 times at the end of February.

Global home improvement stocks have surged this year

While the coronavirus has upended large swathes of the global economy, worldwide lockdowns have ignited a boom in home improvements. Home Depot reported second-quarter revenue growth that was more than double an already high level of expectations, while reports from Germany suggested do-it-yourself sales soared by 16% in the first half.

Covid Do-It-Yourself Boom Is Turning All of Us Into Hipsteaders

But in a stock market that’s ever forward looking, some are beginning to question whether the boom is sustainable, particularly as lockdowns ease and stimulus payments from governments look set to come to an end.

“The Covid-19 crisis pulled forward record levels of demand for home improvement projects as many consumers had more time and money to work on their residences,” Jessica Rabe, co-founder of DataTrek Research, wrote in a note Tuesday. “Once there’s a vaccine it will enable a greater share of disposable income to transition back to vacations and activities outside the home.”

According to Rabe, U.S. home improvement shares in

Continue Reading

Top Home Improvement Retail Stocks To Watch Before October 2020

The MarketWatch News Department was not involved in the creation of this content.

Sep 23, 2020 (StockMarket.com via COMTEX) —
Are These The Best Home Improvement Retail Stocks To Buy Right Now?

Retail stocks were harshly affected by the pandemic when it arrived. Some retail companies were able to perform well like Target Corporation (TGT Stock Report) and Walmart Inc. (WMT Stock Report). This was due to them staying open despite the worldwide closures of retail stores. It seems like home improvement companies were able to see the same benefits as the companies mentioned above.

This is due to the large increase in home improvement during the quarantine. Since people are or were stuck at home, home improvement has been the main focus for plenty with nothing else to do. So the top home improvement retail stocks being open for the majority of 2020 has caused them to perform well. E-commerce is still growing larger than the retail industry, but there are many home improvement products that consumers prefer to purchase in person. Let’s look at a few home improvement retail stocks that have been trending upwards in the market.

Read More

  • Top 3 Cloud Stocks That Could Be Better Buys Than Snowflake
  • 3 Top Ammunition Stocks To Watch Amid Gun Sales Hit A Record High

Top Home Improvement Retail Stocks To Buy [Or Sell] Right Now: The Home Depot Inc.

First, we must discuss The Home Depot Inc. (HD Stock Report) as it is one of the leaders in the industry. The Home Depot is reported as the largest home improvement retail company in the United States. Home Depot’s stores supply things like tools, equipment, construction items, wood, and more. The company has a plethora of locations in several places around North America. On August 18th, the second-quarter results

Continue Reading