It’s always dangerous to bet against a stock as dynamic as Amazon. However, even if the e-commerce giant isn’t doomed for deep declines, it may be time to consider other consumer names that could outperform in the coming months.
Big Lots Big Lots Inc. BIG, -0.54% is a “closeout” and wholesale retailer that specializes in buying products in bulk or at deep discounts, and then passing those savings on to its customers. This business model alone should be appealing to investors as it benefits on both sides of today’s economic uncertainty.
Shares have surged more than 70% this year, but remarkably still have a forward price-to-earnings under 9 and offer a generous 2.6% dividend. It’s safe to say that after Americans have had about nine months of touchless transactions for food, home goods and groceries that the time has never been better for this retailer’s model.
Consider that after 2019 U.S. spending on pet products and services hit a record $95.7 billion, it is sure to top $100 billion for the first time this year, according data compiled by the American Pet Products Association. That’s a powerful trend, and Chewy continues to dominate online pet product sales with roughly 50% market share, according to reports.
Sure, some of that was led by folks looking for golf balls and camping gear to do some socially distant activities. However, much like Chewy and its profitable focus on the pets market, it’s undeniable that sports is big business. Dicks will continue to capitalize on long-term spending trends well after the pandemic.
Dicks over Amazon... you’re joking right?
Agreed