Furthermore, many retailers deal with inflation by passing on higher costs to their customers through price hikes. The consumer price index increased 5.4% in July, and the International Monetary Fund (IMF) warned that inflation could be persistent. So, while investors are worried about rising inflation, retailers that are passing on higher costs to customers are not expected to be impacted substantially.
So, we think it could be wise to bet on retail stocks Lowe’s Companies, Inc. (LOW), BJ’s Wholesale Club Holdings, Inc. (BJ), and Macy’s, Inc. (M), which have advanced significantly in price since reporting their impressive second-quarter earnings results. They are also favorably positioned to continue soaring in the coming quarters.