Check Out These 3 Top Consumer Discretionary Stocks Now
Consumer discretionary stocks are a type of stock that represents companies that sell non-essential goods and services. These include items like clothing, entertainment, and automobiles. Consumer discretionary stocks are those that tend to be more volatile in the stock market and sensitive to changes in the overall economy. For example, during an economic recession, consumers may cut back on their spending on discretionary items. As a result, the prices of consumer discretionary stocks may fall. However, during an economic expansion, consumer discretionary stocks may outperform the market, as consumers have more disposable income to spend on these items. For investors looking for growth potential, consumer discretionary stocks may be an attractive option.
Examples of consumer discretionary stocks include names such as Nike Inc. (NYSE: NKE), Walt Disney Company (NYSE: DIS), and Roblox Corporation (NYSE: RBLX) to name a few. Given the current state of the economy, it wouldn’t surprise me if investors were keeping close tabs on top consumer discretionary stocks. With that, here are three consumer discretionary stocks to watch in the stock market today.
Consumer Discretionary Stocks To Watch Today
- Comcast Corporation (NASDAQ: CMCSA)
- Charter Communications Inc. (NASDAQ: CHTR)
- Activision Blizzard Inc. (NASDAQ: ATVI)
Comcast (CMCSA Stock)
First up, Comcast Corporation (CMCSA) is a global media and technology company with two primary businesses: Comcast Cable and NBCUniversal. Comcast Cable is one of the largest pay-TV providers in the United States, and it also provides high-speed Internet and phone services to residential and business customers. NBCUniversal operates news, entertainment, and sports cable networks; produces films and television shows; and operates theme parks.
Just last month, the company reported a beat for its Q2 2022 financial results. In the report, CMCSA recorded earnings per share of $1.01 for Q2. With that, the company posted revenue of $30.0 billion. Wall Street consensus estimates was earnings per share of $0.91, with revenue of $29.7 billion. The growth for this quarter was driven mainly by NBCUniversal, and theme parks. Since releasing these results, shares of CMCSA have tumbled 12%, closing Wednesday’s trading day at $37.11 per share.
Brian L. Roberts, Chairman and CEO of Comcast commented, “Our financial results in the second quarter were very strong across the board, with Cable, NBCUniversal, and Sky each delivering solid growth in adjusted EBITDA, resulting in a double-digit increase in adjusted earnings per share and healthy free cash flow generation. Significantly we accomplished this while also continuing to invest in our businesses’ future growth, increasing our return of capital to our shareholders, and keeping our balance sheet in a great place.” Considering all of this, is now the time to buy CMCSA stock?
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Charter Communications (CHTR Stock)
Next up, Charter Communications, Inc. (CHTR) is an American telecommunications and mass media company that offers its services to consumers and businesses under the branding of Charter Spectrum. It is the second largest cable operator in the United States behind only Comcast, and it is also the largest provider of residential broadband internet access services in the country.
Moreover, at the end of July, CHTR announced better-than-expected second quarter 2022 financial results. Diving in, Charter Communications reported earnings of $8.80 per share for Q2. Along with that, the company posted revenue of $13.6 billion. For context, analysts consensus estimates for the quarter were earnings of $6.92 per share, on revenue of $13.4 billion. Year-to-date shares of CHTR have been beaten down over 33%, closing Wednesday’s trading session at $429.18 per share. However investors could see this as a potential buying oportunity at these price levels.
CEO of CHTR Tom Rutledge stated in their letter to shareholders, “Our growth has always been driven by offering value-rich packages at prices customers can afford. Looking forward, we remain well-positioned to grow our business using that same strategy. Our fixed and mobile broadband services continue to converge, and we offer a unique connectivity package while meaningfully reducing customer bills. So there is a large opportunity for us to save customers money, which in turn raises connects, reduces churn and drives overall customer relationship growth.” With that, is CHTR a top consumer discretionary stock to keep on your radar today?
Activision Blizzard (ATVI Stock)
Last but not least, Activision Blizzard, Inc. (ATVI) is an American video game holding company based in Santa Monica, California. The company has grown to become one of the largest third-party video game publishers in the world. Notably, Activision’s portfolio includes some of the most popular video game franchises in the world. These include names such as “Call of Duty”, “World of Warcraft”, “Diablo”, and “Overwatch”. At the beginning of this month, Activision Blizzard reported their Q2 2022 financial results.
In the report, ATVI announced earnings per share of $0.38, with revenue of $1.6 billion. This was relatively in line with the consensus estimates. Specificcally, they were earnings per share of $0.39 per share on revenue of $1.6 billion. Additionally, back on January 18, 2022 the company announced that Microsoft (NASDAQ: MSFT) plans to acquire Activision Blizzard. In detail, Microsoft will acquire ATVI for $95.00 per share in an all-cash transaction.
Bobby Kotick, CEO of Activision Blizzard, commented, “Our acquisitions this past quarter of Proletariat and Peltarion further boost our development resources, including our artificial intelligence and machine learning capabilities. Even in a challenging economic environment, with so many companies announcing hiring freezes and layoffs, our development headcount grew 25% year-over-year as of the end of the second quarter. Our talented teams are planning to release exciting new Call of Duty, World of Warcraft and Overwatch content later this year. Of course, we look forward to completing our pending $95 per share all-cash transaction with Microsoft as soon as possible.” Year-to-date shares of ATVI stock are up over 17%. Meanwhile, ATVI stock finished Wednesday’s trading day at$79.28 a share. Will you be adding ATVI stock to your watchlist today?
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