Have you considered adding some of the market’s best retail stocks to your portfolio? When it comes to stock shopping, there’s no shortage of great options to consider on the market right now.
Here are some of those growth-focused retail stocks for investors ready to go stock shopping to consider.
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From gas to gum, this retailer has it all
When was the last time you pulled into a gas station to fill up the car and thought, “Gas stations – now that’s a great investment!”
It doesn’t exactly scream excitement, nor does it call out as a huge investment opportunity. But that’s exactly what Alimentation Couche-Tard (TSX: ATD) does, and despite the initial reaction, the stock is full of massive long-term potential.
Couche-Tard is one of the largest convenience store and gas station operators on the planet. It also happens to be an option for stock shopping investors who are looking for the ultimate growth stock.
That’s because Couche-Tard has taken an aggressive stance on growth, completing ever-larger acquisitions over the years.
And now the retailer has its eyes on the crown: Japan-based 7& I Holdings, which is the name behind the iconic 7-Eleven brand.
The companies have been talking for months about a potential acquisition, for which the ramifications (and growth potential) would be off the scale.
Outside of that potential mega-deal, Couche-Tard’s gas and convenience model operates in dozens of countries around the world. The model is simple, defensive, and has been instrumental in the company posting gains of over 66% in the trailing five years.
From the great white north to down under
Dollar stores are some of the most defensive and downright brilliant retail stocks to consider right now. More specifically, Dollarama (TSX: DOL) is the dollar store stock for those investors doing some stock shopping.
What makes Dollarama worthy of any stock shopping venture? Apart from the sprawling 1,600 locations in Canada (and still growing), Dollarama also maintains a growing presence abroad.
That includes a growing stake in Latin American chain Dollar City, and the recent acquisition of Australian-based The Reject Shop.
In terms of results, Dollarama continues to post strong results, including whopping 8.2% year-over-year in sales in the most recent quarter.
That performance is fueled by strong demand for its products and overall market sentiment. Sales at dollar stores tend to spike when market volatility hits, as consumers opt to trade down on their shopping.
Adding to that appeal is Dollarama’s unique pricing and bundling model, which further makes this a stellar addition to any portfolio.
Was there really any doubt about this retailer?
It would be nearly impossible to talk about well-performing retail stocks with huge potential and not mention Shopify (TSX: SHOP).
The e-commerce titan has become synonymous with online one-stop commerce and a darling of the market. Over the past decade, Shopify has added additional functionality to its core storefront commerce platform.
The company now offers everything from order tracking, and support and analytics to fulfillment and social media on its platform. Many of these are bolt-on plug-ins that allow customers to quickly develop and market their storefronts.
More importantly, it has been wildly successful. In fact, in the most recent quarter, Shopify posted a whopping 27% increase in revenue growth while attaining a 15% free cash flow margin.
For those keeping count, that’s an incredible seven consecutive quarters in which Shopify posted double-digit free cash flow margins.
Shopify expects that growth to continue, making this one of the must-have investments on any stock shopping list.
Let’s go stock shopping
No stock, even the most defensive, is without some risk, and that risk is especially prevalent in the retail sector. That being said, this trio of stocks mentioned above all boast significant defensive appeal.
Throw in the unique growth appeal they each offer, and you have a top list of retail investments to satisfy the hunger of any stock shopping investor.
In my opinion, a small position in one or all of the above should be part of any well-diversified portfolio.
