The Top 3 Retail Stocks to Buy in March 2024
There are some fantastic top retail stocks to buy for March this year. Despite the real threats it faces from e-commerce and social shopping, nothing can quite replace the retail experience. Thus, big box retail stores continue to stay in demand, especially for products that can’t so easily be shopped online. That would include itens more personal to people’s taste; unique sizes, such as clothing and apparel goods; and luxury items that require more in-store personalization.
The top retail stocks in this article I think will continue to stay in business for the long haul. Not only that but margins and revenues are expected to climb as they navigate a changing landscape of shopping experiences and integrate technologies into the traditional retail experience.
So, if you are looking to add some top retail stock to your portfolio, here are three companies you should consider buying today. Don’t miss out on these great options.
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Best Buy (BBY)
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Best Buy (NYSE:BBY) operates through its domestic and international segments, selling products such as computing and mobile phones, consumer electronics, and much more for everyday people.
There are some good reasons why I feel that BBY is one of those top retail stocks for investors in March this year. Best Buy reported fourth-quarter earnings per share (EPS) of $2.72 per share, surpassing analysts’ expectations of $2.52. This marked a 4% increase compared to the previous year. Most notably, this marked the end of a streak of EPS declines, which means that it could be on a solid path toward recovery.
This improvement in BBY’s EPS has led some institutions to raise their price targets. For example, Citi raised its target to $67 from $60, while Wedbush raised it to $75 from $70.
The EPS forecast for BBY this year is also accretive, with analysts expecting a 7.2% expansion, which should give investors some confidence it’s one of those top retail stocks to buy.
Target (TGT)
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Target (NYSE:TGT) also reported a significant increase in earnings, with fourth-quarter earnings per share rising by 57.7% to $2.98, marking seven consecutive quarters of gains. This outpaced analysts’ expectations of a 28% increase.
Despite some declines in previous quarters, Target’s revenue rose by 1.7% to $31.9 billion, reversing the trend of decline seen in the past two quarters. Furthermore, its gross operating margin rate improved to 25.6% from 22.7%. Target also announced the launch of a new paid membership program, Target Circle 360. The company will receive additional revenue streams from the effort.
TGT is one of those top retail stocks that I think investors can rely on. Although it may not have the super aggressive growth prospects as some tech names, even in downturns its products will still be in demand, and its dividend yield of 2.6%, combined with its 52-year dividend increase streak, makes it even more attractive.
Lowe’s Companies (LOW)
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Like the other top retail stocks to buy in this list, Lowe’s Companies (NYSE:LOW) also reported better-than-expected results for its fiscal 2023 fourth quarter. Net sales of $18.6 billion, although down 17% compared to the previous year, beat expectations as did earnings of $1.77 per share.
Some analysts note that with the home improvement market estimated to be worth $1 trillion, Lowe’s 8.6% share of the market presents a substantial opportunity for investors, as reported by The Motley Fool.
I’m inclined to agree with this perspective. But not only is LOW positioned competitively, its outlook is also bullish, as suggested by analyst forecasts. For instance, in FY2025, its EPS is set to surge 9.7% to 13.6, while revenue will sit at $88.27 billion, a slight increase from today’s figure.
I think that any of these top retail stocks to buy could find a home in an investor’s portfolio. LOW stock is competitively priced compared to its peers. With a price-to-sales ratio of just 1.6 times, it is one of the cheaper options as well.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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