Is there an HEB grocery stock? I'm told there are only two things for sure in life, death and taxes. Well, I know a third, and it's our need to be fed. Regardless of the chaos going on in the world today, we still need to eat.
Total food and retail sales in the US topped $5.7 trillion, and one retailer, HEB grocery, made $31.2 billion.
Savvy investors made millions buying grocery store stocks at rock bottom prices in March. But the million-dollar question remains, will grocery stocks tank. And if so, should you purchase shares of HEB grocery stock?
Why Haven't We Heard of HEB Grocery Stock?
- Is there HEB grocery stock yet? No. Despite its size and success, most Americans haven't heard of HEB for one simple reason: of all 50 states, HEB has stores only in Texas. With over 340 stores throughout Texas and Mexico, HEB is a privately owned supermarket chain based in San Antonio, Texas. Founded in 1905, HEB remains owned by the Butt family and employs 135,500.
Not to miss out on the profits from the healthy eating folks, they also operate Central Market, an upscale organic and fine foods retailer. As such, their main competitors are Whole Foods and Mi Tienda stores, which sell Hispanic foods.
1. Let's Talk Money and Metrics
HEB grocery is clearly doing something right; something to the tune of $25 billion. In 2017, they hauled in a shocking revenue of over $25 billion.
In November 23rd of this year, $31.2 billion. It should come as no surprise that HEB is ranked 13th on the list of "Top 75 North American Food Retailers" by sales.
Profits aside, Forbes ranked them No. 12 on their 2019 list of "America's Largest Private Companies. Furthermore, HEB is the 20th largest retailer in the United States, donating 5% of pre-tax profits to charity. Yay HEB! It would make a great HEB grocery stock.
2. Forbes Highlights
#9 - America's Largest Private Companies 2020
#19 - Best Employers for Veterans 2020
#87 - Best Employers for New Grads 2020
-America's Best Employers By State 2020
#82 - Best Employers for Women 2020
#182 - Best Employers for Diversity 2020
#132 - America's Best Employers 2019
All things considered, HEB may not be flying under the radar for much longer. According to new research released from dunnhumby - the global leader in Customer Data Science, things are changing.
America's top grocery retailer, Trader Joe's, has been dethroned by no other than HEB. And it doesn't stop there; they also surpassed Amazon, Costco, and other favorites like Wegmans and Publix.
Now how did dunnhumby come to this conclusion? Well, they prepared something called their Retailer Preference Index (RPI). The RPI takes survey data from more than 7,500 households and combines it with public financial data.
Their goal is to determine the emotional connection consumers have with a grocery chain related to the market performance of the chain.
What they are attempting to measure as far as the consumers are concerned are their trust, intensity of attachment, and recommendation. So what does that mean for HEB grocery stock?
3. Grocery Drive Recognizes HEB as 'Grocer of the Year'
Grocery Dive has awarded H-E-B with the title of Grocer of the Year due to its pandemic preparation and response. Praised for managing to keep core supplies on their shelves despite the pandemic, H-E-B is blazing a new trail.
According to Grocery Dive, "Its stores experienced empty shelves just like other retailers, but it kept supplies strong in core categories like meat, produce and dairy, in no small part thanks to owning many of its manufacturing plants and having strategically placed warehouses throughout the Lone Star State."
And their commitment to their customers doesn't stop there. In March, they created a delivery service solely for those 60 +. Not only was this forward-thinking on their behalf but something that became a lifeline for vulnerable customers.
I'd be remiss not to mention what they are doing for their staff. H-E-B instituted a permanent wage increase and gave workers a $500 bonus.
Considering that this little known Grocer has won just about every recognition and award under the sun, I know I want to invest heavily in H-E-B grocery stock. Wouldn't you?
How to Buy HEB Grocery Stock?
- You're probably going to hate me as I got you all excited over this fantastic company. But, I'm sad to say, you can't buy shares of this Texas grocery giant. This is because HEB is a privately-owned company and the Butt family is keeping the doors to their warehouse firmly sealed. Therefore, no HEB grocery stock.
Sigh. What is one to do now? You might want to consider investing in a company like Walmart, which seems like a safe bet.
Alternatively, some smaller grocery chains may just be a better bet for higher returns. After all, the need to eat isn't going anywhere any time soon.
1. Alternative Grocery Store Stocks to Buy Instead of HEB Grocery Stock
With a market capitalization close to $23 billion and a 2.32% dividend, I'd open up my pocketbook to get a piece of that pie.
Walmart is another to look at since you can't buy HEB grocery stock. Compared to HEB, Walmart is a relatively new company dating back to 1962.
They're currently the largest grocery store in the US despite being in a battle with online retail giant Amazon. Regardless, with a $300 billion market cap, and a dividend of close to 2%, it's a solid alternative to buying HEB stock.
How Can You Get a Piece of the Pie?
Can you get a piece of the HEB grocery stock pie? As I said, people still need food and opportunities like these only come around once in a lifetime. And if grocery stocks interest you, you have several trading options available to you.
If you want to learn how to start investing in stocks, join us today for free. We will show you how you can buy 100 shares of an expensive stock like Walmart for a fraction of the price.
Happy eating and trading!