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

Target Corporation (TGT)

Another store I would be sure to visit is Target. While I certainly miss going to TGT stores and getting things I probably don’t need, I do love their online ordering and pickup store option. TGT offers plenty of low-cost items that can be ordered online and delivered or picked up at stores.

The company had a robust third quarter as earnings and revenues outperformed estimates. During the quarter, online and in-store sales rose 20.7%, while digital sales surged 155%. The company’s curbside pickup was also very popular, increasing by more than 500%. Furthermore, its home delivery service, Shipt, increased by nearly 280%.

TGT has a Strong Buy Rating in our POWR Ratings system. Not only is it in the same A-rated industry as COST, but it is ranked #1 in that industry. The company has a Growth Grade and Value Grade of B, indicating that its growth prospects are not only strong, but it’s trading at an attractive valuation. Plus, analysts love the stock with a Sentiment Grade of A. If you want to know its Quality, Momentum, and Stability Grades, you can find them here.

Dollar Tree, Inc. (DLTR)

If I want to quickly pick up a few items, I go to DLTR, another low-cost store where people could spend their stimulus checks. At most of its stores, every product is only $1, which is perfect for Americans struggling right now. After the government’s first round of stimulus payments, DLTR reported stronger-than-expected results.

The company is also looking to expand its product line with a few at slightly higher prices (up to $5). Management is expected to roll out this program to 500 stores in the spring. The company is also expanding its online presence with the “buy online, pickup in store” program and has experimented with home delivery through Instacart and Shipt.

Like TGT, DLTR has a Strong Buy Rating and is ranked #6 in the Grocery/Big Box Retailers industry. The company has Growth Grade of A, not surprising given that earnings are expected to rise 28% this quarter. DLTR also has a Value Grade of B, which makes sense with a forward ratio of only 16.16. For the rest of DLTR’s grades, make sure you visit the stock’s full POWR Ratings here.

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

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Roger Keats 2 months ago Member's comment

enjoyed the article-----hope it's right on