3 Stocks That Should See A Boost From A Third Round Of Stimulus Checks

Market Outlook

As I mentioned last week, the market had been trending higher since November based on positive news regarding the vaccine and a return to normalcy. But additional spending is needed to keep the train rolling. The President seems to agree. He believes a third round of payments should help families struggling to pay their bills. This should help bolster our economy until the vaccine rollouts gain momentum.

While the actual amount and the income cutoff are still being discussed, there’s no question that the money will go to lower-income families that need the payments to put food on the table. This should lead to gains for stocks that should see much money spent at their stores, such as stores that carry essential items like food, pantries, and cleaning items. That’s why I am highlighting the three companies below.

Costco Wholesale Corporation (COST)

While not everyone has a Costco card, those who do love it. Being able to buy essential items in bulk, especially during the pandemic, has been a huge benefit. So, as you can imagine, the company and its stock fared quite well last year, with the stock finishing up 32.7% for 2020. While the stock has fallen back some this year, the company just reported massive numbers for January. The company’s comparable traffic rose 5.1% in the U.S, and adjusted comparable sales surged over 15% year-over-year.

Now, if I got my stimulus check, a Costco store is certainly one I would want to visit to get my essentials. COST’s strategy to sell products at significantly discounted prices has driven strong growth and makes it a winner for cash-strapped customers looking for low-cost necessities.

The company has a B grade, which represents a Buy Rating in our POWR Ratings system. The company also has a Sentiment Grade of B, which means analysts also love the stock. In addition, COST is in an A rated industry (Grocery/Big Box Retailers), and I prefer to recommend stocks in an A or B rated industry. For other stocks in that industry, click here.

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For more of COST’s Component Grades like Growth, Value, and Momentum, click here.

Disclaimer: Information is provided 'as-is' and ...

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Roger Keats 2 months ago Member's comment

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