Top Consumer Discretionary Stocks To Buy Now? 4 Names To Know
4 Consumer Discretionary Stocks To Watch In September 2021
As we approach the end of this trading week, the broader stock market seems to be edging higher. While investors may be on alert following Fed Chair Jerome Powell’s speech, consumer discretionary stocks remain viable plays. Namely, consumer discretionaries continues to shine throughout the current earnings season. We can see this in the likes of Dick’s Sporting Goods (NYSE: DKS) and Coty (NYSE: COTY) for instance.
On one hand, Dick’s hit a new all-time high this week as it smashed Wall Street estimates in its second-quarter fiscal. The company posted an earnings per share of $5.08 on revenue of $3.27 billion for the quarter. To put things into perspective, consensus projections were $2.80 and $2.85 billion respectively. Moreover, the company also increased its quarterly dividend by 21% to $5.05 per share. On the other hand, Coty topped sales estimates of $1 billion in its fiscal fourth-quarter report. The company also provided upbeat guidance on its upcoming quarter. Overall, both DKS stock and COTY stock are now up by over 140% in the past year.
At the same time, the streaming section of the industry continues to heat up. Yesterday, Netflix (NASDAQ: NFLX) announced that it is now testing its mobile gaming services in Poland. At the moment, Netflix subscribers in the region will have access to two mobile games based on the Stranger Things series. According to Netflix, the service will be ad-free and come included with regular memberships. Safe to say, there is no shortage of exciting developments among consumer discretionary stocks now. As such, could one of these companies be top picks in the stock market today?
Best Consumer Discretionary Stocks To Buy [Or Sell] Today
Amazon is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. In fact, it has one of the largest online marketplace and cloud computing platforms. It also has a wide variety of tech services that include Amazon Prime Video, Amazon Music, Twitch, and Audible. Its Amazon Web Services provides on-demand cloud computing services and APIs to individuals, companies, and governments.
In late July, the company reported a stellar second quarter. Diving in, net sales increased by 27% year-over-year to a whopping $113.1 billion. The company also reported a net income of $7.8 billion for the quarter or $15.12 per share. “Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic.
At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud,” said Andy Jassy, Amazon CEO. With this piece of news, will you consider buying AMZN stock right now?
Next on this list, we have Roku, a consumer discretionary company that focuses on video streaming. The company pioneered the streaming industry to the TV. Impressively, its streaming devices are used by millions of consumers all over the world. The Roku platform also enables content providers and advertisers to reach a massive and highly engaged consumer audience. Its advertising tools are built for streaming and enables Roku advertising to deliver relevant audiences to brands and agencies.
Last week, the company announced its linear lineup that has expanded to more than 200 channels, with a total of 17 all-new channels launching on The Roku Channel. Users will also be able to watch 16 linear channels spanning a wide variety of genres.
Earlier in the month, the company also announced that it has premiered 23 Roku Originals. The company is certainly firing on all cylinders and continues to operate as the No. 1 TV streaming platform in the U.S. as measured by hours streamed. All things considered, will you add ROKU stock into your list of consumer discretionary stocks?
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Apple is a consumer discretionary company that specializes in online services and consumer electronics. The company has revolutionized personal technology with the introduction of the Macintosh in 1984. Today, it is a leading tech company with its line of premium tech products like the iPhone and Macbooks. It is also one of the world’s most valuable companies and also one of the largest PC vendors in the world.
On Thursday, the company announced a News Partner Program which is a new slate of initiatives to expand its work with journalism. The News Partner Program aims to ensure Apple News customers maintain access to trusted news and information from many of the world’s top publishers while supporting publishers’ financial stability and advancing efforts to further media literacy and diversity in news coverage and newsrooms.
Also, the News Partner Program is designed for subscription news publications that provide their content to Apple News in Apple News Format (ANF). With that in mind, will you consider AAPL stock a buy today?
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Another name to consider in the consumer discretionary space now would be Gap. In brief, the San Francisco-based company primarily operates as a clothing retailer. By Gap’s estimates, it is one of the largest American specialty apparel companies in the market now. This would be the case given the wide collection of global brands in its portfolio. This includes its Old Navy, Banana Republic, Gap, and Athleta clothing divisions. Would it be worth watching after gaining by over 350% since its pandemic era low?
Notably, Gap appears to be firing on all cylinders now. For starters, the company reported stellar figures in its second-quarter fiscal yesterday. In it, Gap reported an earnings per share of $0.70, smashing consensus estimates of $0.46. On top of that, the company saw broad-based strength across its flagship brands throughout the quarter.
According to CEO Sonia Syngal, these factors support Gap raising its sales and earnings outlook for the next quarter. Not to mention, Gap is also acquiring Drapr, an e-commerce firm that develops and maintains a virtual dressing room app. Ideally, this would further bolster Gap’s digital services. Would all of this make GPS stock a top buy for you now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.