The Federal Reserve kept short-term interest rates steady, indicating that inflation is approaching the 2% target. Identifying top stocks to buy after July 2024 inflation data is crucial. Inflation trends and interest rates significantly influence investment decisions. As inflation stabilizes, certain companies demonstrate resilience and growth potential. With inflation data continuing to set the tone in the markets, some sectors are better positioned than others to take advantage of easing inflationary pressures and possible changes in economic direction.
Broadline retail companies, with many product lines and e-commerce capabilities, will do very well after the inflation. Besides, the restaurant industry—quick-casual and quick-service restaurants, particularly—will benefit once customers’ spending power is regained. Companies within this space have already posted robust recoveries and growth potential.
Investing in these sectors after the release of inflation data provides an opportunity to capitalize on their growth potential and market resilience, making them attractive options for long-term investment. Therefore, investors targeting these industries can take advantage of their recovery and tried ability to adapt and thrive in varying economic conditions.
Alibaba (BABA)
Alibaba (NYSE:BABA) is the world’s largest e-commerce platform. Q4 fiscal 2024 results show healthy growth in core segments. The Taobao and Tmall Group (TTG) achieved double-digit GMV growth, indicating a resurgence in consumer spending and platform engagement. Indeed, the growth reflects a robust increase in transaction volume, a solid driver of Alibaba’s revenue from customer management services and other services. TTG has adopted a user-first strategy, which involves creating efficient systems for brands, merchants, and industrial belts. Hence, the strategy resulted in solid growth in quarterly buyers and purchase frequency.
Moreover, positive consumer feedback on price competitiveness and user experience has been crucial. The 88VIP membership numbers grew by double digits annually. They surpassed 35 million, reflecting enhanced service experience and user loyalty. Certainly, Alibaba’s product supply, pricing, and quality service investments boost consumption and purchase frequency. These measures are expected to drive further growth in TTG’s GMV. Additionally, the growth is projected to return to healthy levels gradually in the fiscal year 2025, and the platform’s overall shopping experience continues to improve.
Finally, Alibaba’s growth in GMV and investments in quality service and competitive pricing strengthen its appeal as a top stock to buy.
Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) is a global coffeehouse chain renowned for substantial brand equity and customer loyalty. Starbucks is expanding and renovating its store footprint, focusing on underserved Tier-2 and Tier-3 cities in North America. New stores integrate the Siren system equipment to enhance operational efficiencies. Moreover, the company plans hundreds of new builds and over 800 renovations in North America for fiscal 2024. These efforts will drive revenue and improve store-level profitability. Hence, enhanced customer experiences and increased operational efficiency will help.
Further, Starbucks leverages digital innovation to enhance customer engagement. Initiatives like improving the Starbucks app boost engagement. Better wait time algorithms and expanded Mobile Order & Pay (MOP) capabilities help, too. MOP revenue grew 10% year-over-year, and transactions increased by 7%, with MOP Guest Checkout expanding its customer base. It aims to increase customer frequency and spending. Additionally, Starbucks Rewards members grew to 33.8 million active members in the U.S. This indicates successful customer retention and loyalty-building efforts. Digital channels drive this growth.
These attributes ensure consistent growth and stable revenue, making Starbucks a high pick among top stocks to buy despite economic fluctuations.
eBay (EBAY)
eBay (NASDAQ:EBAY) is a major online marketplace facilitating peer-to-peer and business-to-consumer sales. eBay’s GMV increased by 1% to $18.4 billion in Q2 2024, demonstrating eBay’s resilience despite macroeconomic challenges. GMV growth is a fundamental strength, indicating eBay’s ability to attract transactions. This also maintains a substantial volume of goods traded on its platform. eBay’s revenue increased by 2% to $2.57 billion in Q2 2024. This growth outpaced GMV growth by 1%, indicating eBay’s effective monetization strategies and improved take rates. First-party advertising primarily drives these improvements.
Additionally, translating GMV growth into revenue growth is crucial. It sustains profitability and allows reinvestment in the business. eBay’s first-party advertising revenue grew by 12% in Q2 2024. Total ad revenue now approaches 2.2% of GMV. Moreover, advertising revenue growth diversifies eBay’s income sources. It goes beyond transaction fees and enhances profitability. Hence, the redesigned advertising platform simplifies ad campaign management, attracts more advertisers, and boosts revenue further.
To conclude, eBay’s high GMV and advertising revenue growth solidify its presence among the top stocks to buy.
As of this writing, Yiannis Zourmpanos held long positions in BABA and SBUX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.