Top 5 Retail Stocks to Buy Now

1. Lowe’s Companies, Inc. (NYSE:LOW)

Lowe’s Companies, Inc. (NYSE:LOW) is the top retail stock to buy now, being owned by 83 hedge funds on September 30. That ranked it just outside the 30 Most Popular Stocks Among Hedge Funds, coming in at 31^st.

Like rival Home Depot, Lowe’s has done very well during the pandemic, fueled in part by home improvement projects as homeowners reconfigure their homes for work and exercise. Lowe’s same store sales jumped by over 30% in Q3, while revenue grew by 28% and adjusted earnings were up by 40%.

Although Lowe’s isn’t as operationally efficient as Home Depot yet, hedge funds appear to believe its shares are quite a bit cheaper, which is supported by numerous valuation metrics. The retailer clearly agrees, as it just announced plans to utilize its strong balance sheet to buyback up to $15 billion worth of its shares, which have gained 35% this year and rank as the top retail shares to buy on the market.

If you’re looking for investment ideas in an exciting and rapidly growing industry, be sure to check out the 10 Best Data Center Stocks to Buy Now.

Disclosure: None.