When you think of the basic necessities for every family: household goods, food, beverages, hygiene products and other items we can’t live without, no matter what happens in the world and no matter how high the inflation, grocery store stocks may come to mind.
Goldman Sachs (NYSE: GS) Food prices are expected to jump 6% and increase the cost of some agricultural inputs. The price of groceries in the consumer price index has risen by 11% in the last two years.
Why buy groceries stock? Consumer staples can maintain a steady presence as other sectors of the market suffer. Let’s find out why you might want to buy them and have three stocks to choose from this month.
Why buy grocery store stock?
Consumers’ main things, including grocery store stocks, can increase portfolio diversification, offer steady growth, give you hefty dividends and less volatility. Grocery stocks offer a built-in natural bear market defense due to strong demand. The grocery store’s currently inflated grocery prices mean you can also capitalize on the costs paid to consumers. Look for grocery store stocks with competitive advantage over competitors and growth-oriented trajectory.
Stock up on 4 grocery stores to boost your portfolio
So, which grocery store stock would you like to add to your portfolio? Let’s take a look at the four options in the hat so you can see if they work for you.
Albertsons Company Inc. (NYSE: ACI)
Albertsons Company Inc., headquartered in Boise, Idaho, operates a food and drug store that provides groceries, general merchandise, health and beauty care products, pharmacy, fuel and other services. The company operates more than 2,000 stores, including the following:
- Safe way
- Tom Thumb
- Star Market
- United Supermarket
- Market street
- Kings Food Markets
- Balducci’s food lovers market
The company operates more than 1,500 pharmacies, 1,200 in-store branded coffee shops, 400 adjacent fuel stations, 22 distribution centers and 20 manufacturing facilities.
In the 3rd quarter of fiscal 2021, consolidated sales grew 5.2% and digital sales grew 9%. On a two-year stacked basis, the company reported 234% growth in digital sales. Net income was $ 425 million and adjusted net income was $ 457 million.
Net sales and other revenue for the 12 weeks ending December 4, 2021 were $ 16.7 billion, compared to 15 15.4 billion in 2020. The agency said retail inflation and COVID-19 vaccines contributed to the rise.
Adjusted net income was $ 457.2 million, compared to 38 386.6 million in the 3rd quarter of 2020. In the third quarter of fiscal year 2020.
Target Corporation (NYSE: TGT)
Target Corporation, headquartered in Minneapolis, Minnesota, operates and owns general merchandise stores across the country, including food stores including perishable, dried groceries, dairy and frozen items.
In Q4 2021, comparative sales of Target Corporation grew 8.9%, up from 20.5% in Q4 2020.
The target is to deliver মোট 106 billion in total revenue in 2021, an increase of about $ 28 billion or 35% over the last two years. Compared to full-year sales of 12.3%, up from 19.3% in 2020.
Target’s total sales have grown to more than $ 27 billion since 2019, with অতিরিক্ত 14 billion in additional store sales and digital sales growth of about $ 13 billion. In 2021, all five core merchandise segments reported double-digit comparable sales growth.
Costco Wholesale Corporation (NASDAQ: COST)
Costco Wholesale Corporation, headquartered in Isaqua, Washington, operates a membership warehouse and sells food and various products, fresh food and more through its U.S. operations, Canadian operations and other international operations segments.
Recent results reflect the following: For the second quarter and first 24 weeks of FY 2022, net sales for the quarter increased 16.1% to $ 50.94 billion, from $ 43.89 billion last year. Net sales rose 16.4% to $ 100.35 billion in the first 24 weeks, up from $ 86.23 billion last year.
Net income for the quarter was $ 1,299 million, compared to $ 951 million. It was $ 246 million in pretax and CO 0.41 per mixed share in costs initially derived from COVID-19 premium wages.
In February, Costco reported net sales of $ 16.29 billion, up 15.9% from বছরের 14.05 billion last year. For the 26-week period ending February 27, 2022, net sales were $ 108.39 billion, an increase of 16.3% from বছরের 93.16 billion last year.
Dordash (NYSE: DASH)
Although not technically a grocery store, we recommend DoorDash Inc. for good measure. Adding to this.
DoorDash Inc., headquartered in San Francisco, is a platform that connects merchants, consumers and dashers. It provides customer acquisition, distribution, insights and analysis, merchandising, payment processing and customer support. The company ultimately offers customers on-demand access to e-commerce.
DoorDash showed Q4 core financial metrics of revenue that grew 34% year-over-year to 1.3 billion. Total orders grew 35% year-over-year to $ 369 million, and marketplace GOV grew 36% to $ 11.2 billion.
GAAP’s gross net profit of $ 637 million obscured last year’s report of $ 477 million. However, GAAP net loss was $ 155 million compared to $ 312 million net loss in Q4 2020. Adjusted EBITDA was $ 47, down $ 94 million in Q4 2020.
Keep grocery store stock in your portfolio
When you scrape with staples to add to your portfolio, don’t overlook the stores that actually Payment Consumer main
Expect grocery stores to see constant technological changes, such as cashier-free stores and advanced AI technology. Also, be sure to look for strong dividend growth and competitive advantage within the grocery store that you think you want to add to your list. Noticing potential ups and downs will only increase your advantage in the long run.
Costco Wholesale is part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and operated by entrepreneurs.