4 Big Box Store Stocks to Buy in August By StockNews

A fast-paced vaccine rollout, rapid economic recovery, and rising consumer spending boosted retail sales significantly in the first half of 2021, driven primarily by pent-up demand for discretionary products. Analysts expect this upswing to continue in the coming months. Therefore, we think established big box stores operators Walmart (NYSE:), Costco Wholesale (COST), Target (TGT), and Big Lots (NYSE:) should witness good revenue growth in the near term. Read on.The retail industry rearranged its operations to focus mainly on online platforms and delivery networks amid social distancing mandates last year. However, with the vaccination rollout in full swing, big box stores have lately been witnessing rising foot traffic. Retail sales have accelerated significantly on pent-up demand for discretionary products thanks to rising consumer spending. The demand from online and physical outlets has driven a 17.6% year-over-year increase in retail sales in the first five months of 2021, surpassing original forecasts.

Consequently, the National Retail Foundation (NRF) has upgraded its 2021 retail sales forecast and expects personal consumption expenditures to grow 7.5% year-over-year rather than 4.5% predicted earlier. NRF Chief Economist Jack Kleinhenz said, “We are seeing clear signs of a strong and resilient economy.”

As economic activities continue to build up steam, the shares of the big box store operators are expected to deliver significant returns through the remainder of 2021. As a result, we believe the shares of leaders in this space, Walmart Inc. (WMT), Costco Wholesale Corporation (NASDAQ:), Target Corporation (NYSE:), and Big Lots, Inc. (BIG), should be attractive bets now.

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