Four dividend-paying retail technology stocks to buy feature
the best investment opportunities that emerged after BoA Global Research
recently hosted virtual meetings and fireside chats with the leaders of 18
public companies in that sector.
The four dividend-paying
retail technology stocks to buy towered over the rest at a BoA Global
Research Consumer & Retail Technology Conference on March 9-11 with
companies gaining strength after thriving during the pandemic planning to keep
growing market share. Rivals that struggled in 2020 due to macro trends
expressed optimism about the economic recovery boosting their prospects,
according to BoA.
Among the points of discussion at the event were the
implications of reopening, the risk of inflation and a potential new investment
cycle to spur transformation. Companies engaged in home-related categories
seemed destined to become COVID-19 beneficiaries that likely would gain from
increased consumer demand in early 2021.
Favorable tailwinds that could lift retail technology stocks
include the $1.9 trillion federal stimulus recently passed by Congress,
economic improvement and strong housing trends that could propel spending for
home upgrades at higher-than-average levels in the medium term, according to
BoA. The companies tend to have strong cash positions after “unprecedented
sales growth” and are investing in areas to boost market share.
Company leaders in categories such as auto parts retailers
that survived weak 2020 demand spoke positively about economic growth due to
the improving pace of COVID-19 vaccine rollout, according to BoA. The
investment firm forecast that some consumer spending would shift from goods to
services in the second half of 2021.
Retail technology executives at the event addressed the
prospect of inflation, with those from larger, well-capitalized companies
emphasizing that pricing power comes with purchasing power. Thus, they can
access product in categories where there are supply constraints and pass along
the higher cost of freight and raw materials to the customer, according to BoA.
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