n this article, we discuss the 5 best retail stocks to buy now. If you want to read about some more retail stocks, go directly to 10 Best Retail Stocks to Buy Now.
5. The TJX Companies, Inc. (NYSE:TJX)
Number of Hedge Fund Holders: 55
The TJX Companies, Inc. (NYSE:TJX), with nearly 4,700 stores in nine countries, works as a retailer of home fashion and apparel products at discounted prices. It is one of the top retail stocks to watch right now. On November 16, The TJX Companies, Inc. (NYSE:TJX) posted earnings for the fiscal third quarter of 2022. For Q4 2023, it now expects revenue to be between $13.9 billion to $14.1 billion, versus a consensus of $14.26 billion.
The company is well positioned for the holiday period and beyond. On December 1, Baird analyst Mark Altschwager maintained an Overweight rating on The TJX Companies, Inc. (NYSE:TJX) stock and increased his price target to $88 from $84.
Among the hedge funds being tracked by Insider Monkey, BlueSpruce Investments is a leading shareholder in The The TJX Companies, Inc. (NYSE:TJX) with 5.4 million shares worth more than $332.3 million.
4. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 68
Walmart Inc. (NYSE:WMT) is a retail giant with 10,500 stores and 210 distribution centers across 24 countries. The retail powerhouse reported another solid quarterly performance in September 2022, with upside in revenue versus Wall Street estimates. Walmart Inc. (NYSE:WMT) is one of the top retail stocks in the market. For the past 49 years Walmart Inc. (NYSE:WMT) has continuously increased its dividends. As of December 2022, the company has a quarterly dividend of $0.56 per share with a dividend yield of 1.46%.
Wall Street is bullish on Walmart Inc. (NYSE:WMT). On December 1, Atlantic Equities analyst Daniela Nedialkova increased her price target on Walmart Inc. (NYSE:WMT) stock to $165 from $150 and reiterated an Outperform rating on the shares.
Walmart Inc. (NYSE:WMT) was in 68 hedge fund portfolios at the end of the third quarter of 2022, compared to 67 in the previous quarter. Fisher Asset Management, with a position worth $1 billion, is the most notable stakeholder of the company.
3. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 69
Costco Wholesale Corporation (NASDAQ:COST) is an American multinational corporation with warehouse club operations in eight countries. On September 22, the company posted earnings for the fourth quarter of 2022. The revenue over the period was $72.09 billion, up 15.0% compared to the revenue over the same period last year.
Costco Wholesale Corporation (NASDAQ:COST), one of the best retail stocks to buy now on our list, has been raising its dividends consistently for the past 17 years. The company pays a quarterly dividend of $0.90 per share for a dividend yield of 0.73%, as of December 3.
The company is popular with hedge funds. As per Insider Monkey’s Q3 2022 database, 69 hedge funds owned stakes in Costco Wholesale Corporation (NASDAQ:COST), worth $4.4 billion collectively. Fisher Asset Management was the company’s largest stakeholder in Q3.
2. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 89
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that provides tools, construction material, appliances, and services. On November 14, The Home Depot, Inc. (NYSE:HD) announced market-beating earnings for the fiscal third quarter of 2022. The company reported an EPS of $4.24 and outperformed consensus by $0.13. The company generated a revenue of $38.87 billion, up 5.6% year over year, and beat estimates by $910 million.
Scot Ciccarelli, an analyst at Truist, slashed his price target on The Home Depot, Inc. (NYSE:HD) stock from $400 to $382 on November16 while maintaining a ‘Buy’ recommendation on the stock. The analyst noted that the business remains resilient despite broader housing concerns.
At the end of Q3 2022, 89 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD) and disclosed stakes worth $5.6 billion in the company. This is compared to 80 positions in the preceding quarter with stakes worth $5.4 billion. The hedge fund sentiment for the stock is positive. As of December 2, 2022, Fisher Asset Management is the largest shareholder in The Home Depot, Inc. (NYSE:HD) in our database and holds a stake worth more than $2 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology business with an emphasis on digital streaming, cloud computing, internet advertising, and artificial intelligence. It is one of the finest retail stocks to buy now. Given its scale, Amazon.com, Inc. (NASDAQ:AMZN) has been consistently profitable despite economic challenges. On October 27, the company posted earnings for the third quarter of 2022, reporting an EPS of $0.28, beating market estimates by $0.07. The revenue over the period was $127.1 billion, up 14.7% compared to the revenue over the same period last year.
On December 1, Cowen analyst John Blackledge maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and raised his price target to $160 from $150.
Amazon.com, Inc. (NASDAQ:AMZN) is also popular with hedge funds. According to Insider Monkey’s Q3 data, 269 hedge funds had stakes in Amazon.com, Inc. (NASDAQ:AMZN). The total value of the holdings is approximately $34.6 billion. When looking at the institutional investors followed by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in the company.
You can also take a peek at 10 Best Bargain Stocks To Buy Right Now and 10 Best Infrastructure Stocks To Buy Now.
