(C) Reuters. 3 Retail Stocks You Can Buy and Hold for the Next Decade
As people go back to socializing and in-store shopping in increasing numbers with most of the U.S. population now having had at least one vaccination shot, retailers are experiencing a significant resurgence in sales. Also, increased personal consumption and government spending are expected to power the retail industry further. Consequently, we believe that retail companies with strong fundamentals, such as Walmart (NYSE:WMT), Home Depot (NYSE:HD), and Costco Wholesale (COST), are well positioned to witness solid growth this year and beyond. Let’s discuss.A return to normalcy, on the back of a rapid rollout of vaccines and government stimulus spending, is boosting consumer spending, which in turn is driving retail-sales growth. Because most of the U.S. population has now been vaccinated, the pent-up demand for in-store shopping is expected to drive retail companies’ growth. In addition, as the need for digitization and online shopping grows, industry leaders are focusing on modernizing their operations to meet the needs of customers and simultaneously boost their revenue through digital engagements.
As the economy recovers from the COVID-19 pandemic and customers spend the money that they have saved over the past year, retail sales are projected to rise between 10.5% – 13.5% to $4.44 trillion – $4.56 trillion in 2021. Indeed, the National Retail Federation expects the retail industry to witness “the fastest growth” in the country since 1984.
So, we believe shares of prominent retailers Walmart Inc. (WMT), The Home Depot (HD), and Costco Wholesale Corporation (NASDAQ:COST) are great long-term bets.
3 Retail Stocks You Can Buy and Hold for the Next Decade
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