As the recent mania for meme stocks cools, so has the momentum around various retail stocks. However, it turns out that there are a couple of Canadian retail stocks that have held up pretty well through the pandemic and held steady during this period of high volatility in this space.
In fact, investors looking for retail stocks that offer stability and excellent return potential should consider these top Canadian retail stocks. These are among my top picks right now, and for good reason.
Let’s dive in.
Top Canadian Retail Stocks: Aritzia
One of the Canadian retail stocks that has rebounded quite strongly in the last year is Aritzia (TSX: ATZ). In fact, these brick-and-mortar retail stocks have done a number of things right to achieve a higher valuation of late.
This includes a timely transition to an omnichannel business model. The company’s e-commerce segment has exploded, fueled by the pandemic. However, it is worth noting that the traditional physical stores of Aritzia have also started to do very well. In the US, the company’s sales soared 243%, with total revenue increasing over 120% year-over-year.
These types of numbers highlight the strength of the Aritzia brand. As a fashion retailer, Aritzia has stayed in tune with what investors want. Consequently, the growth profile of this company remains strong at this time.
I believe that the company has a solid future ahead of it, if Aritzia manages to maintain growth through its omnichannel model. In fact, time will tell how strong this recovery will be. However, Aritzia remains well-positioned to handle whatever environment it is thriving in.
One of the best retail stocks out there for long-term investors is still Canadian tire (TSX: CTC.A). In fact, this retailer has proven its worth in recent years, continuing an impressive growth trajectory over time.
As a Canadian-focused retailer, this is unusual. In fact, many Canadian-based companies find their growth internationally. After all, the Canadian market is relatively small in nature relative to the large southern market.
However, Canadian Tire’s flagship brand is among the strongest of its peers nationally. Plus, the company has made some impressive strategic moves lately. From switching more of its product range to private label products, or adopting an e-commerce focused strategy before its peers, Canadian Tire has been a leader from a growth perspective.
On the dividend front, Canadian Tire is not far behind, either. This is a company that has continued to increase its dividends aggressively. Currently yielding just 2.7%, Canadian Tire’s dividend yield has grown aggressively of late as the company seeks to return value to shareholders.
I like that.
In fact, both stocks are great options for Canadian investors looking for top-tier retail stocks right now.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool advisor or premium service. We are Motley! Questioning an investment thesis, even one of our own, helps us all to think critically about investing and make decisions that help us be smarter, happier, and wealthier, which is why we sometimes post articles that may not be online. with recommendations, ratings or other content. .
Foolish collaborator Chris MacDonald has no position in any of the actions mentioned.