Coronavirus cases are increasing by the day. And thus all of our worlds are closing in by the day leading to more time confined at home.
I have recently explored how this is of benefit to other stocks as shared in these recent articles:
Now it is time to consider another thriving trend which is the consumers need to stock up on food and household essential items for the long stay at home. That is most certainly benefiting these 3 stocks that you might want to consider adding to your portfolio at this time: Target (TGT), Kroger (KR) and Grocery Outlet (GO).
Target is a safe bet in an environment that has a lot of people spending the bulk of their time at home. TGT sells just about everything a family can need, from clothing to groceries to housewares and tools. The online component is a boon during this current state of reducing public interaction, as is their long-established curbside pickup service.
Today’s price just under $100 reflects the recent market volatility, especially during the middle part of the month. Yet in the past week it has shown a lot more strength then the rest of the S&P. TGT is another company that has been around for a substantial period of time, it was founded in 1902, and will continue to do well post COVID-19.
Another think to like about the stock is the attractive dividend yield of 2.63%. Beyond the positive trends for the industry as a whole at this time, I especially like their tech advancements and their app which is considered a market segment leader.
(TGT is 1 of only 5 stocks inside the Reitmeister Total Return portfolio that gained +6.2% earlier this week while the S&P fell -11.5%. How is that possible? Because we are using a hedged portfolio with conservative stocks & inverse ETFs to generate a profit as the market goes down. Get 30 day trial to Reitmeister Total Return)
It makes sense to include one of the market’s longest listed grocery chains in any current list of good buys today. Even in times of normalcy, KR is a steady performer. Yet during these times, you understand the sales growth that has allowed shares to actually rally 13.2% this year while most other stocks are down 20-30% or more.
If you are looking for a reliable stock that will still provide some upward momentum after this pandemic has faded, KR is a solid choice at $34.18. Outside of the Covid-19 impact, KR has also been dedicated to boosting its affordable organic offerings, a move that will surely continue to pay off in the years ahead.
Grocery Outlet (GO)
GO is a bit of a crossover between a grocery store chain and the TJ Maxx discounter model. This California-based company might be one of the oldest companies that you’ve never heard of. Founded in 1946, GO utilizes an overstock purchase model in the grocery and food sector. It sells its product through a network of independently owned stores.
Grocery Outlet only has 320 stores and provides both name brand and private-label goods. Yet they have tremendous growth aspirations to roll out to over 4,000 stores over the next decade. Even if GO comes in at half that level, it would still mark tremendous growth that early investors would be thrilled to be on board.
Let me be clear. Grocery Outlet is a great investment idea at this time as investors clear out their shelves leading to a short term boon in sales and profits. But it truly is the long term potential for GO that has me so excited.
Just imagine buying into TJ Maxx 20 years ago and riding it out to its current perch as a nearly $50 billion market cap firm. I believe GO has the potential to move in that same direction which is why I will not let go of shares when the Coronavirus scare is over.
Just like TGT, Grocery Outlook is also only 1 of the 5 stocks inside the Reitmeister Total Return portfolio that gained +6.2% earlier this week while the S&P fell -11.5%.
How is that possible?
Because we are using a hedged portfolio with conservative stocks & inverse ETFs to generate a profit as the market goes down.
TGT shares were trading at $98.21 per share on Friday afternoon, down $2.29 (-2.28%). Year-to-date, TGT has declined -22.96%, versus a -26.79% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
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