There are quite a few retail stocks out there that could bounce back in the short term and are worth a look this time around if you're interested in potentially profiting from the trend. Let's take a look at 3 stocks to play mall revival.
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While we know 2020 has been a terrible year for most retailers, investors might be surprised to find some promising signs are coming from brick and mortar retail at this point. Earlier this week, we saw US retail sales hit $ 619.9 billion in April, up 51.2% year over year. Countless people are also returning to shopping malls thanks to the COVID-19 vaccine rollout. Combine that with all of the stimulus payments sent out over the last year and you have a recipe for a rebound in many of the major retail stocks.
It's hard to determine whether this rebound in shopping mall activity is a long-term trend or just temporary, especially given the surge in e-commerce. With that in mind, there are quite a few retail stocks out there that could bounce back in the short term and are worth a look this time around if you're interested in potentially profiting from the trend. Let's take a look at 3 stocks to play mall revival.
Macys (NYSE: M)
Lots of investors pronounced Macy & # 39; s dead last year as people simply didn't visit physical stores during the pandemic. Don't write off this legendary retailer yet as this is one of the best ways to tackle the rebound in retail sales. Macy’s operates retail stores, websites and mobile applications under well-known brands such as Macy’s, Bloomingdale’s and Blue Mercury. The company sells a variety of different goods such as clothing and accessories, cosmetics, home furnishings, and other consumer goods.
There are certain things people like to buy in person, and a lot of the goods Macy sells fall into that category. The company also just reported a surprise first quarter profit and raised its outlook for the full year. Both of these suggest things are going well for this beleaguered retailer. Comparable revenue in the first quarter was up 62.5% year over year, and Macy also saw digital revenue growth of 34% year over year. This shows that the company is seeing positive momentum in its e-commerce sales channel. Macy’s has a lot of questions to answer over the long term, but in 2021 it's a company that could well surprise investors.
Simon Property Group (NYSE: SPG)
If you're interested in taking advantage of a surge in pedestrian traffic in shopping malls, why not take a look at one of the largest retail property owners in the world. Simon Property Group is a real estate investment trust that owns, develops, manages, leases and acquires regional shopping centers and municipal shopping centers. Simon owns or has interests in 235 properties in 37 different states. It is also important here that Simons properties are located in attractive locations, which is very important in the increasingly competitive retail industry.
The Simon Property Group is also interesting because the company has access to a lot of capital in order to take advantage of potentially lucrative investment opportunities. The company recently acquired the retailer Eddie Bauer at a discount in the company's joint venture with Authentic Brands. Simon reported decent Q1 results that beat estimates, and the stock is offering investors a dividend yield of 4.25% at this point, which seems safe for now. Add these to your shopping list if you want to do malls restore the smart way.
L brands (NYSE: LB)
Last on our list is L Brands, one of the best specialty retailers currently under consideration. This company mainly focuses on intimate and other women's clothing, personal care products, and beauty and home fragrance products. With classic brands like Victoria & # 39; s Secret and Bath & Body Works, L Brands physical retail stores can be found in most malls around the world and could see sales spike if foot traffic picks up again. L Brands plans to outsource Victoria & # 39; s Secret and Bath & Body Works to new publicly traded companies in the near future, which should be viewed as a positive that could unlock value for shareholders.
This is a retail stock that was surprisingly strong in 2021, up over 75% since the start of the year. The company has worked hard to improve its fundamentals, which should also be welcomed by investors. L Brands reports earnings for the first quarter after the bell on May 19th. If the company delivers strong results, the stock could head for new 52-week highs. Keep these in mind if you are interested in a retail inventory that is showing great relative strength this year.
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