3 Dirt-Cheap Stocks That Could Skyrocket When the Market Rallies
With the market still in the dumps, valuations have come down significantly. As a result, even top stocks are trading at dirt-cheap prices. If you own them, it can be depressing. But looking at the silver lining, you can buy more or start a position at prices not seen in years. That's the Warren Buffett way, and it wouldn't be too bad to imitate some of his wild success. Target (NYSE: TGT), Revolve Group (NYSE: RVLV), and Williams-Sonoma (NYSE: WSM) are three stocks trading at incredibly low prices that could soar when the market turns around.
Target was arguably the biggest winner in the early stages of the pandemic. Comps, or comparable sales, shot up when people hoarded essentials, and Target enjoyed some of its best growth ever.
There were several reasons Target was well equipped to handle demand, perhaps more so than its peers. First is its omnichannel network, which it revamped starting in 2016, putting it squarely in the middle of changing shopping trends. Target offers a comprehensive mix of physical and digital shopping options. Its same-day services have become hugely popular over the past two years, combining the best aspects of in-store and at-home shopping. At the same time, it streamlined delivery services, shipping more than 95% of orders from stores. This both sped up shipping times and saved money on distribution centers. Customers also embraced the company's owned brands, which provide similar quality as name brands at better price points. These give Target improved margins. Finally, the company has invested in store layout and design, which were important when it was allowed to keep stores open as an essential retailer.
Source Fool.com