The retail industry provides a sense of familiarity to new and seasoned investors alike. Many of the industry leaders have been around for several decades and are among the most well-known household names. These proven companies are attractive for their longevity and stability.
Retail has had its ups and downs in recent times, thanks in large part to the rise of e-commerce platforms. Despite that fact, retail still experiences a year-over-year growth of just over 4% on average.
There some real winners to be found in the retail stock space, and a big reason for that is because many of the stocks are undervalued. P/E ratios are very low thanks in part to significant tax cuts. The bargains are plentiful.
Factors to Consider Before Investing in Retail Stocks
Although the retail industry generally experiences consistent growth overall, the truth is it’s incredibly divided. A lot of long-standing retail companies have closed their doors in recent years, largely because they weren’t able to adjust to shifting consumer trends.
The empty space created by these closures allows room for other companies to grow. The ones who can take advantage of this situation are the retail stocks to keep an eye on.
Some will be pleased to learn that a considerable percentage of retail stocks pay regular dividends. Immediate and continual monetary returns on top of price gains are a huge draw.
Which Retail Stocks Should I Buy?
If you’re looking to make a long-term investment, it might be best to opt for a company that’s been in business for many years. The gains might be lower, but they’re safer. If you want to try your luck short-term, look for something new and trendy. Some ideas become viral at lightspeed before disappearing into obscurity.
We have compiled a list of some of the top retail stocks below. It’s common to choose something simply because you like to shop there, but be sure to do your due diligence and not fall into the same trap as so many others.