Top 3 retail stocks to buy in January 2022

Stocks have started the year well, with the S&P 500 index rising to a record high. Retailers have continued to perform well as the market reflects on the strong holiday season. In this article, we will look at the top 3 retail stocks to buy in January 2022.

Lululemon Athletica

Lululemon (NASDAQ: LULU) is a leading Canadian retailer valued at $50.6 billion. The company sells athleisure items through its global chain of stores and digital devices. 

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Lululemon has been in a strong growth path in the past few years. Its annual revenue has increased from $2.34 billion in 2017 to $5.87 billion in the past twelve months. It has also become a more profitable company as its net income is quickly approaching $1 billion. This explains why the Lululemon stock price has risen by 240% in the past three years.

Lululemon is expected to do well this year as investors focus on the ongoing reopening, which will lead to more demand for athleisure products. 

Tapestry

Tapestry (NYSE: TPR) is a leading American retailer that is known for luxury brands like Kate Spade, Coach, and Stuart Weitzman. It has a market capitalization of about $11 billion and annual revenue of more than $5 billion. It is a highly profitable company whose net income has risen to more than $800 million.

Tapestry and other luxury brands have done well recently because of the great wealth that has been created during the Covid-19 pandemic. The number of billionaires and millionaires has increased even as ordinary people have gotten poorer.

The Tapestry stock price rose by 32% in the past 12 months as demand for its products rose. This trend will likely continue this year.

Target

Target (NYSE: TGT) is one of the biggest American retailers. It has more than 1,800 stores across the US and its e-commerce operations are among the biggest. 

Like other retailers, Target has done well during the Covid-19 pandemic. Its total revenue has increased from about $67 billion in 2017 to more than $93 billion in 2021. Its net income has also jumped to more than $5 billion.

This explains why the Target stock price has done well in the past few months. The stock jumped by 33% in the past 12 months, bringing its market cap to $111 billion. Target will likely keep doing well in the next few months.

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