Five hot retail stocks to invest in during 2022

The retail stocks sector has faced unmatched challenges over the past two years.

Nonetheless, investors, analysts and the best stock brokers in the UK remain optimistic that it will normalise moving forward. The disruptions in the industry were due to disturbances like the tight labour market, supply chain disruptions, inflation, and lockdowns.

Since late November 2021, the exchange traded fund (the SPDR S&P Retail ETF) that tracks the retail stocks sector went down by 20%. Yet, investors can still make a decent income from retail stock trading.

Here are the five hot retail stocks to invest in during 2022:

1.   Amazon

Shares of this cloud services leader and online retail giant have not attained the gains long-term investors expected in 2022.

Most of the company’s shares have dropped by about 12% over the past year. Thus, analysts are wary of the company’s underperformance for long-term investors.

Nevertheless, they insist that Amazon’s nascent advertising and AWS cloud business will fuel its future stock market growth.

On the other hand, Amazon Prime membership would work as a secret sauce that will provide high margin repetitive revenue and tie the company’s ecosystem together.

2.   Alibaba Group

Alibaba Group is a market leader in cloud services and e-commerce in China.

The company recorded 31% core commerce revenue growth and 25% overall revenue growth in the third quarter of 2021. Nonetheless, its shares have dropped by over 52% despite these impressive growth numbers in the past year.

The concern now is the increased regulatory inspection among public Chinese companies listed in the US and the Big Tech antitrust embargos in China.

All in all, the company's Big Data centric business creates an unparalleled network impact, enabling it to expand into other stock markets and growth sources.

3.   JD.com

JD.com is another top e-commerce company from China that has dropped in performance due to regulatory uncertainties in the US and China.

Yet its stocks are still trading at a striking valuation. Analysts say the company expanded its shopping market share across the country from 21% in 2016 to 27% in 2020.

Thus, it is more likely to continue growing its margins as it expands its scale over the long-term results. JD can potentially increase its revenue by 21% throughout the fourth quarter.

4.   MELI

MELI is the largest online marketplace in Latin America and an e-commerce leader in stock markets such as Mexico, Argentina, and Brazil.

Its shares have dropped by more than 33% since it announced a one million share equity in November 2020. However, analysts say the equity does not necessarily indicate that the company’s management predicted a stock overvalued.

Instead, MELI might be shoring up its balance sheet following the uncertain macroeconomic challenges in the near-term. The concerns included constitutional referendums and upcoming elections.

Thus, its retail shares are still an excellent opportunity to vest your investments in the stock markets.

5.   eBay

eBay now runs the best internet auction platform worldwide.

The company has turned into a focused customer to customer e-commerce company after divesting Gmart, eBay classified and Stubhub with an emphasis on used products.

And it has improved its platform through inventory management services, promoted listings, and managed media.

Experts believe the company has access to long-term growth opportunities like the $500 billion addressable stock market in seasoned and non-new products.

Above all, its focus on premium shoes, luxury jewellery, liquidation inventory, and collectables is a savvy move.

Conclusion

Given the unpredictable stock market rates right now, trading with the best UK stock brokers is critical to make any substantial returns.

The Federal Reserve hikes on interest rates, high inflation, and disruption of the supply chain due to the Russia-Ukraine invasion have ultimately caused an unpredictable market.

Restrictions in China and crackdown on US listed retail stock markets worsen the stock market conditions.

In any case, the list we provided in this post can be an excellent stock market investment opportunity to pursue.

Above all, it would be best to prioritise short-term investments over long-term ones since the drawbacks might most impact long-term investments.