Do You Have These Top Discretionary Consumer Stocks On Your Watchlist This Week?
When it comes to buying things, there are needs and there are wants. Consumer discretionary stocks focus on the latter, companies that focus on selling cars, clothes, and other types of entertainment. Many of these companies suffered during 2020 at the hands of the novel coronavirus. The reason being, if it’s something you can eliminate from your budget during economic hardship, it’s discretionary. Considering these companies are not created equally, not all of them have performed badly. On the contrary, some of the best consumer discretionary stocks in the stock market today have a tendency to move in correlation with the overall economy, making them cyclical stocks. The consumer discretionary stocks that have outperformed their industry peers, specifically during the pandemic, are worth taking a closer look at.
How To Find The Best Consumer Discretionary Stocks To Buy?
Companies that provide their consumers with the necessities have performed significantly better than the broader market as Americans continue to stock up to avoid leaving their homes during the coronavirus pandemic. For example, top consumer discretionary stocks to watch like Target (TGT Stock Report) and Home Depot (HD Stock Report) have seen their businesses outperform their industry peers. This came as consumers rushed to stock up necessities, sending both TGT stock and HD stock to their all-time highs.
Obviously, finding the top consumer discretionary stocks to buy during a pandemic is no easy task, but not impossible. If investors are flocking to these stocks, the reason being is more than likely growth. Granted there’s still no end in sight with the current pandemic, but with the process of distributing mass amounts of vaccine and the new $900B covid-19 relief bill that was just signed, things may be looking up for consumer discretionary stocks. With that being said if you can find consumer discretionary companies that can still post record growth during a global pandemic, how do you think they would perform in a post-pandemic world? With all things considered, do you have these consumer discretionary companies on your list of best stocks to buy this week?
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Best Consumer Discretionary Stocks To Watch This Week
- Disney. (DIS Stock Report)
- Costco (COST Stock Report)
- Walmart (WMT Stock Report)
The Walt Disney Company
First up on the list is Disney (NYSE: DIS). Disney has to be one of the best turn-around stories in the market. After getting hit hard by the pandemic causing the shutdown of its theme parks and movie production, DIS stock recently climbed back to new all-time highs of $183.40 a share and closed Friday’s trading session at $178.69 a share. If you remember Disney restructured its media and entertainment divisions, with streaming becoming the most important facet of the company’s media business.
Disney has seen consistent growth in the months since the COVID-19 pandemic hit. A big reason for this is their success with their Disney+ platform. With such an ambitious plan, many investors feel that the company will dominate both the streaming and theater industry moving forward. As of December 2, Disney+ had 86.8 million subscribers, representing exceptional growth since it launched back in November 2019. Also, ESPN+ had 11.5 million subscribers while Hulu had 38.8 million. This definitely helps Disney offset declines in revenues due to the closure of their theme parks.
Of course, now that vaccines are being distributed across the U.S., Disney’s theme parks could potentially see a return in foot traffic to their parks. Disney is also getting a boost from the anticipation of increased consumer spending after President Trump signed the COVID-19 stimulus deal. With a growing streaming business and recovery in other segments of their business, is now the best time to buy DIS stock?
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Next on the list, we have Costco (NASDAQ: COST). The Washington-based multinational corporation that operates a chain of membership-only warehouse clubs. The company offers a wide variety of merchandise that customers can buy in large, wholesale quantities at discount rates. Costco has seen a significant increase in paid memberships in the last five years from 47.6 million to 58.1 million. The company has also reported an impressive near 90% renewal rate globally.
Costco’s share price is up over 18% since August closing Friday’s trading session at $369.94. The company recently reported its first-quarter fiscal year 2021 operating results. The company reported net sales for the first quarter increased 16.9 percent, to $42.35 billion from $36.24 billion last year. They also reported net income for the quarter was $1,166 million, or $2.62 per diluted share, compared to $844 million, or $1.90 per diluted share, during the same period last year. Given all this, would you consider adding COST stock to your portfolio this week?
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Last on the list, is retail giant Walmart (NYSE: WMT). Walmart is a household name for many in the U.S. Its stock has seen consistent growth over the past six months with gains of over 19%. Despite being initially affected by the pandemic in March of last year, WMT stock rallied and hit new all-time highs last year hitting $153.66 a share. The stock has since pulled back closing Friday’s trading session at $146.63 a share.
Last month, the company announced its driverless delivery operations would be launching this year. This is a great announcement for Walmart as it puts the company at the forefront of the industry with its driverless freight initiative. In a time where social distancing is becoming a new norm, this will definitely help its business moving forward.
In November, the company reported impressive results in its third-quarter fiscal. Walmart brought in in over $134 billion in total revenue for the quarter. Notably, its transition towards e-commerce seems to have benefitted the company as its revenues in that segment jumped 79% year-over-year. Walmart’s recent investments are focused on growing its e-commerce services. With WMT getting off to a strong start to the new year, investors will be watching WMT stock closely. Will you?