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BoA: Reasons To Buy Discount Store Stocks

Video Credit: Wochit
Published on August 6, 2020 - Duration: 00:50s

BoA: Reasons To Buy Discount Store Stocks

Business Insider reports that banks' and tech giants' earnings largely impressed Wall Street.

Bank of America says discount stores are set to post similarly positive results, according to Bank of America.

BoA analysts expect the sector's second-quarter figures to hold strong thanks to rising food sales and improvement in general merchandise revenue.

Thanks to momentum in higher-profit categories and successful online operations Walmart, Target, and Dollar Tree are in good positions.

BoA gave reasons why this is the time to buy stock in discount stores.

Food sales held up well throughout the second quarter.

Target and Walmart moved towards e-commerce at just the right time.

Lower prices that allow stores to compete with Amazon.

Companies expenses are shrinking, most expenses related to the coronavirus likely landed in the first quarter, the analysts wrote.

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