The stock market is gearing up for a Santa Claus rally and the positive news about the COVID-19 vaccine has been a major catalyst. In addition to the vaccine, hopes surrounding another stimulus package has also buoyed investor sentiment…
On December 4th, President-elect Joe Biden backed the $908 billion bipartisan stimulus plan and urged Congress for immediate action citing the state of the economy and health crisis.
Moreover, according to the latest jobs data, the US economy added 245,000 jobs in November, indicating the slowest month of growth since recovery. This has put further pressure on the requirement of a stimulus package. This package is also critical for the businesses which witnessed a prolonged slump on account of the pandemic.
As the retailers are hopeful about an uptick in business amid the holiday season, the much-needed government aid would give the necessary boost for a faster revival. Three retail stocks poised to gain against this backdrop are Home Depot, Inc. (HD), Target Corporation (TGT), and Chipotle Mexican Grill, Inc. (CMG). These companies have strong businesses and will benefit from more consumer purchasing power.
Home Depot, Inc. (HD)
HD is a global leader in the home improvement retailing. It sells various, home improvement products, building materials, lawn and garden products, and decor products through its Home Depot stores. It also offers professional installation in various categories sold through its stores as well as in-home sales programs. It has close to 2,295 retail stores across 50 states.
On November 16th, HD announced that it is buying industrial goods wholesaler HD Supply Holdings in a deal worth $8 billion. The objective behind this planned acquisition is to…
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