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4 Grocery Stocks to Buy as Coronavirus Takes a Worse Turn
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The pandemic has left the retail sector battered and just when everyone was thinking that the economy has finally started recovering, an astounding rise in COVID-19 cases has again left everyone worried. In fact, retail sales declined in November for the second consecutive month. Also, retailers are worrying that another round of shutdown may leave them devastated.
However, grocery remains one of the few things that may not feel the heat of surging coronavirus cases, as people will start stockpiling on essential goods. The pandemic has already changed the shopping habits of millions, with most people buying things online. Thus grocers with a strong online arm may benefit from the situation.
Coronavirus Cases Surge
Fresh cases of coronavirus continue to escalate in the United State and so does the rate of mortality. According to Johns Hopkins University, the United States saw a double jump in both new cases and deaths on Dec 16. A record 3,700 deaths and 250,000 new COVID-19 cases were reported within 24 hours on Wednesday.
The country currently has 113,000 hospitalizations, which is also a new high. Moreover, the country has reported 3,000 deaths on a single day for the third time in a week. COVID-19 cases have been on the rise for the past month, which peaked post Thanksgiving. States have already started imposing restrictions, and stay-at-home orders are being imposed.
Online Grocery Sales to Grow
Grocery remains a priority in every household and people might once again start stockpiling on fears of a shutdown. This might see demand for groceries soaring again, which might ultimately benefit retailers. However, those with a strong online arm or curbside pickup facility stand to benefit the most given that people are hesitating to step out of their house.
Since the coronavirus outbreak, online grocery sales have been on the rise. According to eMarketer, online grocery sales are expected to cross $89.22 billion by the end of this year, increasing 53% year over year. And the trend is likely to stay with total online shoppers projected to reach 147.4 million by 2023.
Our Choices
E-commerce has come as a savior during the pandemic and has also been helping the retail sector. Growing fears of coronavirus and another round of shutdown might once again compel people to start stockpiling on groceries. This thus makes for an opportune time to invest in grocery companies that have a strong online arm.
Target Corporation (TGT - Free Report) has evolved from just being a pure brick & mortar retailer to an omni-channel entity. The company has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
The company’s expected earnings growth rate for the current year is 35.5%. The Zacks Consensus Estimate for current-year earnings has improved 19% over the past 30 days. Target carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hain Celestial Group, Inc. (HAIN - Free Report) offers a wide range of popular better-for-you groceries, snacks and tea.
The company’s expected earnings growth rate for the current year is 51.2%. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2.
Conagra Brands Inc. (CAG - Free Report) is one of the leading branded food companies of North America. The company offers premium edible products, with a refined focus on innovation.
The company’s expected earnings growth rate for the current year is 10.5%. The company’s shares have gained 3.9% in the past three months. Conagra Brands has a Zacks Rank #2.
B&G Foods, Inc. (BGS - Free Report) , along with its subsidiaries, manufactures, sells and distributes high-quality, shelf-stable, frozen food and household products across the United States, Canada and Puerto Rico.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current-year earnings has improved 5.6% over the past 60 days. B&G Foods has a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
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4 Grocery Stocks to Buy as Coronavirus Takes a Worse Turn
The pandemic has left the retail sector battered and just when everyone was thinking that the economy has finally started recovering, an astounding rise in COVID-19 cases has again left everyone worried. In fact, retail sales declined in November for the second consecutive month. Also, retailers are worrying that another round of shutdown may leave them devastated.
However, grocery remains one of the few things that may not feel the heat of surging coronavirus cases, as people will start stockpiling on essential goods. The pandemic has already changed the shopping habits of millions, with most people buying things online. Thus grocers with a strong online arm may benefit from the situation.
Coronavirus Cases Surge
Fresh cases of coronavirus continue to escalate in the United State and so does the rate of mortality. According to Johns Hopkins University, the United States saw a double jump in both new cases and deaths on Dec 16. A record 3,700 deaths and 250,000 new COVID-19 cases were reported within 24 hours on Wednesday.
The country currently has 113,000 hospitalizations, which is also a new high. Moreover, the country has reported 3,000 deaths on a single day for the third time in a week. COVID-19 cases have been on the rise for the past month, which peaked post Thanksgiving. States have already started imposing restrictions, and stay-at-home orders are being imposed.
Online Grocery Sales to Grow
Grocery remains a priority in every household and people might once again start stockpiling on fears of a shutdown. This might see demand for groceries soaring again, which might ultimately benefit retailers. However, those with a strong online arm or curbside pickup facility stand to benefit the most given that people are hesitating to step out of their house.
Since the coronavirus outbreak, online grocery sales have been on the rise. According to eMarketer, online grocery sales are expected to cross $89.22 billion by the end of this year, increasing 53% year over year. And the trend is likely to stay with total online shoppers projected to reach 147.4 million by 2023.
Our Choices
E-commerce has come as a savior during the pandemic and has also been helping the retail sector. Growing fears of coronavirus and another round of shutdown might once again compel people to start stockpiling on groceries. This thus makes for an opportune time to invest in grocery companies that have a strong online arm.
Target Corporation (TGT - Free Report) has evolved from just being a pure brick & mortar retailer to an omni-channel entity. The company has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
The company’s expected earnings growth rate for the current year is 35.5%. The Zacks Consensus Estimate for current-year earnings has improved 19% over the past 30 days. Target carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hain Celestial Group, Inc. (HAIN - Free Report) offers a wide range of popular better-for-you groceries, snacks and tea.
The company’s expected earnings growth rate for the current year is 51.2%. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2.
Conagra Brands Inc. (CAG - Free Report) is one of the leading branded food companies of North America. The company offers premium edible products, with a refined focus on innovation.
The company’s expected earnings growth rate for the current year is 10.5%. The company’s shares have gained 3.9% in the past three months. Conagra Brands has a Zacks Rank #2.
B&G Foods, Inc. (BGS - Free Report) , along with its subsidiaries, manufactures, sells and distributes high-quality, shelf-stable, frozen food and household products across the United States, Canada and Puerto Rico.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current-year earnings has improved 5.6% over the past 60 days. B&G Foods has a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>