Are These The Best Consumer Stocks To Buy In The Stock Market Today?
Despite talks of a possible recession and multiple interest rate hikes coming in the near future, consumer stocks could still be worth considering in the stock market today. Although investors may be led to think that consumers would be spending less, consumers seem to be behaving otherwise. According to the U.S. Commerce Department, retail sales in April rose by 0.9%, indicating that consumers are weathering the inflationary headwinds in the stock market.
Along with that, big-box retailers such as Costco (NASDAQ: COST) are posting stellar quarterly results. Namely, it reported revenue of $52.60 billion for the quarter, beating analysts’ estimates of $51.71 billion. Elsewhere, we have the department store chain operator Nordstrom (NYSE: JWN), which saw its sales increase by 18.7% from the same quarter last year. Additionally, in the same earnings report, Nordstrom also raised its outlook for the current quarter. With all this in mind, check out these four consumer stocks in the stock market today.
Consumer Stocks To Buy [Or Sell] Today
- Victoria’s Secret & Co. (NYSE: VSCO)
- HP Inc. (NYSE: HPQ)
- Ulta Beauty Inc. (NASDAQ: ULTA)
- Macy’s Inc. (NYSE: M)
Starting us off today is Victoria’s Secret (VSCO). Those who are familiar with the company would know that the company is renowned for its women’s intimate apparel, personal care, and beauty products. Its products range from fragrances to sleepwear and even swimwear. With approximately 1,400 stores worldwide, it should not be surprising that investors often rank the company as one of the leading names within the industry. Yesterday, the company posted its quarterly earnings that topped Wall Street expectations.
Jumping right in, revenue came in at $1.48 billion, in line with analyst estimates. Although sales were down by 4.5%, VSCO notes that the federal stimulus benefits boosted sales by about $75 million in the same period last year. Moving on to earnings, VSCO raked in a net income of $1.11 per share, or $76.14 million. For comparison, consensus estimates were $0.84 per share. CEO Martin Waters added, “We are pleased with our first-quarter results and our team’s strong execution. Against the backdrop of significant global headwinds and a challenging inflationary environment, we delivered sales results at the high end of our guidance range and better than expected adjusted earnings per diluted share.” Given the quarter’s earnings, should you invest in VSCO stock?
HP, short for Hewlett-Packard, is a global provider of personal computers and peripherals to name a few. The company primarily sells its products and services to individual consumers, businesses, governments, and organizations from various sectors. HP’s segments can be broken down into Personal Systems, Printing, and Corporate Investments. For the most part, its Personal Systems offers desktops and PCs. Subsequently, its Printing segment is focused on graphics and 3D imaging solutions in the commercial and industrial markets. In the past year, HPQ stock rose by about 30% in price.
Also this week, HP posted its earnings for its fiscal 2022 second quarter. The company reported a revenue of $16.5 billion, rising by 3.9% when compared year-over-year and beating consensus forecasts of $16.2 billion. Its Personal Systems segment, which includes consumer and commercial PCs, made up an $11.5 billion chunk of this revenue and rose 9% year-over-year. Commercial PC revenue, which accounts for 65% of its PC business, rose 18% compared to last year. Along with that, the company also brought in better-than-expected profits during the past quarter. Namely, adjusted earnings were $1.08 per share, hitting the high end of its target range of $1.02 to $1.08 a share. Evidently, this beats Wall Street estimates of $1.05 per share as well. Considering the company’s strong sales, should you buy HPQ stock?
Following that, we have Ulta Beauty. The company operates as a chain of retail beauty stores. Ulta carries both high-end and low-end cosmetics, fragrances, nail products, hair care products among many others. For a sense of scale, Ulta operates approximately 1,308 stores across 50 states. On top of that, every Ulta store is also equipped with a beauty salon. The company boasts a catalog of 25,000 products across various categories, including Ulta’s own private label and the Ulta Beauty Collection. Although ULTA stock has been trading sideways for most of the year, it has been gaining attention again lately.
Last week, the company posted record figures for its fiscal 2022 first-quarter results. Diving in, net sales came in at a total of $2.35 billion compared to $1.94 billion last year. This represents an increase of 21% year-over-year. Along with that, comparable sales increased by 18%, driven by a 10% increase in transactions and a 7.3% increase in average tickets. Moving on, the company also reported exceptional earnings, with profits soaring 44% over the same period last year. Namely, net income increased to $331.4 million from $230.3 million in the first quarter of 2021. Accordingly, diluted earnings per share increased to $6.30 from $4.10 a year ago. As such, is ULTA stock a buy?
Another consumer stock worth noting today could be Macy’s. In brief, it identifies itself as one of the premier omnichannel fashion retailers in the U.S. Through its national network of stores, the company primarily operates via its three core divisions. They are Macy’s, Bloomingdale’s, and Bluemercury retail brands. The company also offers a wide array of merchandise that caters to varying consumer demographics. Along with its fashion offerings, it also sells cosmetics and home furnishings among other consumer goods. Over the past year, M stock has risen by just over 27%.
Last Thursday, the company announced its financial results for the first quarter of 2022. Jumping in, it reported net sales of $5.35 billion, an increase of 13.6% year-over-year from $4.71 billion and slightly exceeding Wall Street estimates. The company also posted an adjusted earnings per share of $1.08 for the quarter, beating the analyst expectations of $0.82 per share. Furthermore, Macy’s repurchased $600 million in shares under a $2 billion share repurchase program during the quarter. All in all, should you add M stock to your watchlist?