To begin, consumer discretionary stocks refer to companies that produce or sell goods and services that consumers can choose to purchase or not, such as automobiles, leisure goods, and luxury items. These stocks are considered to be sensitive to economic cycles, as consumers tend to cut back on discretionary spending during recessionary periods.
Retail investors may consider investing in consumer discretionary stocks to potentially benefit from the growth of consumer spending. However, it’s important to note that these stocks can be riskier than other types of investments, as they are more sensitive to economic downturns.
It’s crucial to conduct thorough research before making any investment decisions in consumer discretionary stocks. This will help investors to understand the economic conditions and the overall performance of the companies they are considering investing in. Additionally, diversifying your portfolio with stocks from different sectors can help mitigate the risk of investing in a single sector. Considering this, let’s check out these three top consumer discretionary stocks in the stock market today.
Consumer Discretionary Stocks To Buy [Or Sell] Now
- Starbucks Corporation (NASDAQ: SBUX)
- The Walt Disney Company (NYSE: DIS)
- Nike Inc. (NYSE: NKE)
Starbucks Corporation (SBUX Stock)
Starting off, Starbucks Corporation (SBUX) is a multinational coffee company and coffeehouse chain. It falls under the category of a consumer discretionary stock, as it operates in the specialty eatery industry and its products are not considered essential.
On Thursday of this week, Starbucks announced that it plans to release its first quarter fiscal year 2023 financial results on Thursday, February 2, 2023, after the market closes. The company also plans to hold a conference call at 2:00 p.m. Pacific Time to discuss the financial results with investors and analysts.
Meanwhile, looking at the last six months of trading action, shares of SBUX stock have advanced by 25.21%. While on Friday, Starbucks stock is currently trading flat on the day at $104.26 a share.
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Walt Disney Company (DIS Stock)
Next, The Walt Disney Company (DIS) is a multinational entertainment conglomerate and one of the world’s largest media companies. It operates in a wide range of industries, including media networks, parks and resorts, studio entertainment, and consumer products.
Just this month, The Walt Disney Company announced that Mark G. Parker, an independent director and the Executive Chairman of NIKE, has been elected as the Chairman of the Board. This is effective after the annual meeting of shareholders. The current Chairman, Susan E. Arnold, will not be re-elected as she reached the 15-year term limit set by Disney’s Board Tenure Policy. This decision also leads to reducing the size of the Board to 11 members.
So far this year, DIS stock has recovered by 14.13% YTD. Meanwhile, on Friday early afternoon, shares of DIS stock are trading higher on the day by 2.48% at $101.54 a share.
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Nike Inc. (NKE Stock)
Last but not least, Nike Inc. (NKE) is a multinational corporation that designs, develops, and sells footwear, apparel, equipment, and accessories. The company’s products are sold to retail accounts, through NIKE-owned retail stores and digital platforms, as well as through a mix of independent distributors and licensees, across the world.
Last month, Nike Inc. announced its financial and operating results for the second quarter of 2023. The company reported earnings per share of $0.85 and revenue of $13.3 billion for the quarter. These numbers exceeded Wall Street’s consensus estimates of $0.65 per share and $12.5 billion in revenue. Moreover, the company saw a 17.2% increase in revenue compared to the same period in the previous year.
Over the last month of trading, shares of NKE stock have rebounded by 21.71%. While, during Friday’s lunchtime trading session, Nike stock is trading slightly higher on the day by 0.88% at $125.62 a share.
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