The Best Consumer Discretionary Stocks to Buy Now? 4 To know

0


Are these the best consumer discretionary stocks to buy right now?

Among the different sectors of the stock Exchange, consumer discretionary stocks appear to be gaining ground as investors anticipate booming economic growth for the remainder of the year. Along with the rate of vaccines administered in the United States, this would lead to a rapid reopening of the country’s economy. And that bodes well for leading consumer discretionary stocks. This sector includes businesses that sell goods and services considered non-essential. Some of the biggest names in the industry include Home Depot Inc (NYSE: HD), Nike Inc (NYSE: NKE), and even Apple Inc (NASDAQ: AAPL). As some of you would expect, companies in this industry tend to be more volatile as they move up and down based on broader economic trends.

With COVID-19 seemingly on the decline in the United States, it’s only natural that some industries that were previously affected by the pandemic are seeing strong rebounds in demand for their products and services. After all, with tens of millions of people vaccinated against the insidious virus in the United States, people are spending more time outdoors again. And that makes many of the leading consumer discretionary stocks potentially worth buying, creating huge opportunities for many investors. If you believe the story of economic recovery, do you have this list of top consumer discretionary stocks to buy on the stock market today?

Top consumer discretionary stocks to watch

Pinduoduo Inc

Pinduoduo is a Chinese e-commerce platform operator. Its mobile e-commerce platform provides value-for-money merchandise and interactive shopping options. The PDD stock has been quite impressive over the past year. Its price has more than doubled during this period.

Source: TD Ameritrade T & Cs

Last week, the company announced its first quarter earnings report. Its revenue rose 239% to $ 3.4 billion from the previous year quarter. Of which online marketing and other services contributed $ 2.15 billion, an increase of 157%. In addition, there was also a 31% increase in active buyers, now at 823.8 million. Since China’s new three-child policy has come into play, these numbers may improve over time.

Since its IPO in 2018, the company has slowly become a legitimate challenger to the Alibaba Group (NYSE: BABA) and JD.com Inc (NASDAQ: JD) in the Chinese e-commerce space. Many attribute this to Pinduoduo’s relentless growth and the growing popularity of its business model. That said, PDD stock is down more than 30% from its February peak. So, could this be a perfect opportunity to stock up on PDD stock?

[Read More] 3 value stocks to watch right now

McDonald’s Corp

Then we have one of the world’s leading fast food restaurants, McDonald’s. Now who doesn’t know McDonald’s? It serves a local menu of food and drink at over 39,000 restaurants in over 119 markets around the world. After its sale in March 2020, the MCD share is on an upward trajectory. Over the past year, the stock has climbed almost 25%.

consumer discretionary equities (MCD equities)Source: TD Ameritrade T & Cs

In April, the company released its first quarter earnings report. Global comparable sales increased 7.5% and consolidated revenues increased 9%. In addition, consolidated profit increased 35%, which includes the $ 135 million related to the sale of McDonald’s Japan shares. If we were to exclude them, net operating income would be up 27%. As we can see, the company began to cushion the significant impact of COVID-19 on its global results from March 2020.

In addition to this, McDonald’s also announced that it will increase the allocation of advertising funds to media companies, production houses and content creators owned by various companies over the next four years. This would help strengthen individual businesses while creating closer relationships with McDonald’s diverse customer base. With that in mind, would you consider buying MCD stocks?

Read more

Starbucks Company

Starbucks Corporation operates as a roaster, distributor and retailer of specialty coffee around the world. Its stores offer coffee and tea drinks, whole bean and ground roast coffees, single-serve and ready-to-drink beverages, and a variety of food products. Starbucks operates more than 32,000 stores worldwide, a number that has doubled in the past decade. Fortunately for its investors, the company’s stock is also following the same trajectory. In fact, the price of SBUX shares has almost doubled over the past year.

main consumer discretionary stocks to buy (SBUX stock)Source: TD Ameritrade T & Cs

In April, the company released its fiscal second quarter 2021 results. The company appears to be recovering from the impact of the pandemic. In particular, worldwide comparable store sales for the quarter increased 15%, largely driven by a 19% increase in average sales per customer. To top it off, GAAP earnings per share were $ 0.56, double the previous year. This demonstrates an impressive dynamic of its activity with a recovery in sales and illustrates its ability to adapt to the changes posed by the pandemic.

These are exciting times for the company as it focuses on growing international stores. With plans to reduce the number of stores in the United States, it plans to open 95% of its new stores internationally in fiscal 2021. This would likely improve its operating margins as the expenses of store operations are lower in the international segment. All things considered, is SBUX stock one of the best consumer discretionary stocks to buy?

[Read More] The best growth stocks to buy now? 5 electric vehicle stocks to watch out for

Tenneco Inc

To sum up the list, we have Tenneco Inc. The company is one of the world’s leading designers, manufacturers and distributors of automotive products for Original Equipment and aftermarket customers. Through its four business groups, Motorparts, Performance Solutions, Clean Air and Powertrain, Tenneco is driving the advancement of global mobility by providing technology solutions for the diverse global market.

consumer stocks (TEN stock)Source: TD Ameritrade T & Cs

Last week, one of Tenneco’s companies, Ӧhlins Racing, was selected as the exclusive supplier of shock absorbers for the NASCAR® Cup Series “Next Gen” automotive platform scheduled for launch in 2022. It will supply all NASCAR Cup Series teams have a highly advanced, adjustable five-way version of the popular hlins TTR coil-spring damper. This once again illustrates that the company’s strong heritage in motor racing has gained the recognition it deserves.

In May, the company released its first quarter financial results. Total revenue increased 23% year-over-year to $ 4.7 billion. Whose value-added revenues increased to $ 3.6 billion, 13% more than the quarter of the previous year. Meanwhile, net income stood at $ 65 million, compared to a net loss of $ 839 million last year. So, it is safe to say that the business is moving in the right direction. So, is it a good time to invest in TEN stocks?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Share.

About Author

Avatar

Comments are closed.