The retail industry provides a variety of finished goods, both durable and non-durable, to individual consumers and households. The industry also sells services. Products sold by retail companies include apparel, electronics, furniture, kitchenware, sporting goods, books, and toys. Some even sell groceries, pharmaceutical products, auto parts, and gardening supplies.
The industry includes traditional brick-and-mortar retailers as well as emerging ecommerce companies. Some of the biggest retail companies include Walmart Inc., Amazon.com Inc., and Costco Wholesale Corp.
Retail sales in the U.S. increased 3.8% in January, the largest rise since March 2021, despite accelerating inflation and weakening consumer sentiment. Spending was supported by huge savings built up during the COVID-19 pandemic and a tightening labor market. The Federal Reserve is expected to raise interest rates several times this year to slow the economy and slow the pace of inflation.
Retail stocks, as represented by an exchange-traded fund—the SPDR S&P Retail ETF (XRT)—have underperformed the broader market. XRT has provided a total return of -13.5% over the past 12 months, below the Russell 1000’s total return of 8.2%.
Here are the top three retail stocks with the best value, the fastest growth, and the most momentum. The market performance numbers above and all statistics in the tables below are as of March 8, 2022.
These are the retail stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.
Best Value Retail Stocks
Market Capitalization (Market Cap) ($B)
12-Month Trailing P/E Ratio
eBay Inc. (EBAY)
Foot Locker Inc. (FL)
Big 5 Sporting Goods Corp. (BGFV)
eBay Inc.: eBay is an e-commerce company that operates an online marketplace connecting buyers and sellers of new and used…..