One of the hottest sectors in the stock market is retail — with clothing sales and home renovations leading the way.
With people tending to Netflix and chill at home, renovating living environments is on the list of big projects households make. Thus, Home Depot (HD) and flooring company Floor & Décor (FND) are thriving.
And with many malls having vacancies, off-price clothing stores like Ross Stores (ROST) and TJX (TJX) are taking market share. These stores also have lasting power. Yesterday, I saw a set of boxer shorts at TJ Maxx that were half the price of the same set at Amazon.
Speaking of store closings, Toys R Us’s pain is good for Five Below (FIVE) as well as Ollie’s Discount Stores (OLLI).
Some of these retail stocks are actually safe investments. Home Depot, TJX and Ross Stores have high safety ratings and make enough cash coming in they buyback their own stock.
