3 Retail Stocks to Buy Now: May 2024

Retail Industry Overview - The retail industry has faced unprecedented challenges over the past four years, including pandemic-induced shutdowns, a surge in "revenge shopping," and record-high inflation and interest rates [1] - The Federal Reserve raised interest rates 11 times in 2023, leading to a higher-for-longer policy that has dampened consumer spending beyond necessities [1] - Despite the challenges, there are still opportunities to find strong retail stocks that can thrive and generate significant returns [2] Walmart (WMT) - Walmart is considered a premier essential business, with sales increasing 6% year-over-year to $161.5 billion, surpassing Wall Street expectations of$159.6 billion [3] - Adjusted profits were 60 cents per share, beating estimates of 53 cents, driven by consumers responding to Walmart's value proposition rather than inflation [3] - Walmart's stock is expected to be 24% higher in 2024, making it a key retail stock to consider [4] LVMH Moet Hennessey Louis Vuitton (LVMUY) - LVMH, a luxury retailer, has outperformed many aspirational luxury and mass merchandise retailers due to the resilience of wealthy consumers during inflationary periods [5] - First-quarter revenue fell 2% to 20.7 billion euros ($22 billion), but this was due to a record-breaking growth pace in 2023 rather than a significant pullback [5] - LVMH's stock is trading at a discount to its future growth prospects and offers a dividend with a 12.6$1.1 billion [9] - Costco ended the first quarter with 132 million cardholders and $73.4 million paid memberships, making it a strong retail stock to buy [9]