The consumer sector, an essential part of our daily lives, encompasses businesses that sell goods and services directly to everyday people. From the food we eat to the clothes we wear and the gadgets we use, this sector drives a massive chunk of the global economy. Within the stock market, the shares of these businesses are often termed “consumer stocks.” They represent companies focused on manufacturing or delivering products or services catered to the direct needs or desires of the consumer populace.
Consumer stocks, given their vast and varied nature, can be intriguing for investors. Their prominence in the stock market results from their unique position of being closely linked to everyday consumer spending habits. Historically, these stocks have proven to be reliable, especially since people will always need to purchase essential goods, making them an attractive option for those looking for a blend of stability and potential growth in their investment portfolios.
When diving into the world of consumer stocks, it’s crucial to look beyond just the brand’s popularity. Investors should consider the company’s financial health, its position within the market, and growth prospects. Keeping this in mind, here are three consumer stocks to watch in the stock market today.
Consumer Stocks To Buy [Or Sell] Right Now
- The Home Depot Inc. (NYSE: HD)
- Target Corporation (NYSE: TGT)
- Costco Wholesale Corporation (NASDAQ: COST)
Home Depot (HD Stock)
First up, The Home Depot Inc. (HD) is a leading home improvement retailer. The company offers an extensive range of construction and home renovation products. With numerous stores across the U.S., Canada, and Mexico, it provides both DIY enthusiasts and professional contractors with tools, construction materials, and services tailored to a broad array of projects.
In August, Home Depot announced its Q2 2023 financial results. Diving right in, Home Depot reported earnings per share of $4.65, on revenue of $42.92 billion for the quarter. This is versus Wall Street’s consensus estimates for the quarter which were earnings of $4.46 per share, and revenue of $42.25 billion.
Meanwhile, year-to-date shares of Home Depot stock have pulled back by 7.87% so far. Moreover, during, Wednesday morning’s trading action, HD stock is trading at $291.24 a share.
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Target (TGT Stock)
Second, Target Corporation (TGT) is a renowned large-scale retailer that operates across the U.S. Target offers a diverse selection of products ranging from clothing and household items to electronics and groceries.
Last month, Target announced that its board of directors had declared a quarterly dividend of $1.10 per common share. This dividend is set to be paid on December 10, 2023, to shareholders on record by the end of business on November 15, 2023. Notably, this upcoming dividend marks the company’s 225th consecutive payout since Target went public in October 1967.
In 2023 so far, shares of Target have fallen by 30.01% thus far. With that said, during Wednesday morning’s trading session, TGT stock is trading at $106.05 a share.
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Costco Wholesale Corp (COST Stock)
Lastly, Costco Wholesale Corporation (COST) is an international membership-only warehouse club. The company is known for offering high-quality products at volume pricing. Spanning a wide range of categories including groceries, electronics, home goods, and more.
In September, Costco reported a beat for its fourth quarter 2023 financial results. In detail, the company notched in earnings of $4.86 per share, with revenue of $78.94 billion for the quarter. For context, analysts’ consensus estimates for the quarter were earnings of $4.71 per share, on revenue of $77.96 billion. Meanwhile, revenue increased by 9.50% compared to the same period, the previous year.
Year-to-date, shares of COST stock have increased by 24.98%. While, during Wednesday morning’s trading action, Costco stock is trading at $566.42 a share.