5 Trending Consumer Stocks To Watch Right Now
With the stock market looking to recover from its recent losses, consumer stocks would be in focus this week. If anything, this would be the case as investors await the latest figures on inflation and consumer spending. On one hand, these figures have been cause for concern over the last few months for some. Accordingly, the rise in inflation would generally be in line with that of an economy on the recovery. On the other hand, consumer spending rose to great heights as well. This would be thanks to a mix of stimulus money and nationwide vaccination efforts.
Now, some would argue that this week’s figures would likely continue to moderate. As rising Delta variants continue to impact the momentum of the current reopening trade, this is understandable. Nevertheless, some of the top names in consumer-focused industries continue to make headlines all the same. Just last week, Macy’s (NYSE: M) received a rosy update from analysts over at Cowen (NASDAQ: COWN). The firm hit M stock with an Outperform rating, hailing it as “an American icon reinvented” on grounds of its e-commerce initiatives.
Elsewhere, Dollar General (NYSE: DG) appears to be expanding into the health care business. CEO Todd Vasos recently noted that roughly 65% of the company’s locations are in “health deserts.” This comes after the company brought on its first chief medical officer back in July. With all this activity in the sector, I can understand if investors are looking for the best consumer stocks in the stock market today. On that note, here are five to know.
Best Consumer Stocks To Watch Today
- Netflix Inc. (NASDAQ: NFLX)
- PayPal Holdings Inc. (NASDAQ: PYPL)
- Nvidia Corporation (NASDAQ: NVDA)
- Etsy Inc. (NASDAQ: ETSY)
- Roku Inc. (NASDAQ: ROKU)
To start things off, we have Netflix, a leading entertainment streaming service with over 200 million paid memberships in over 190 countries. In brief, its impressive catalog of TV series, documentaries, and feature films spread across a wide variety of genres and languages. Also, the company is at the forefront of cord-cutting trends and says that streaming entertainment is gradually replacing linear TV. This is given how streaming is on-demand, personalized, and available on any screen, replacing conventional linear TV.
In July, the company reported its second-quarter financials. Firstly, it reported a revenue increase of 19% year-over-year to $7.3 billion. It finished the quarter with 209 million paid subscribers, growing by 8.4% compared to a year earlier. Netflix also posted a net income of $720 million or diluted earnings per share of $1.59 for the quarter.
Furthermore, the company says that for its third-quarter forecast, it expects revenue of $7.4 billion and a net income of $1.15 billion. All things considered, will you add NFLX stock to your watchlist of consumer stocks?
PayPal Holdings Inc.
Moving on, PayPal Holdings is a multinational financial technology company that operates an online payments system throughout the globe. As an industry leader in digital payments for more than 20 years, the company continues to make its financial services and commerce more convenient for its 400 million consumers and merchants. PYPL stock has enjoyed gains of over 45% in the past year.
Last week, the company announced that it has agreed to acquire Paidy, a leading two-sided payments platform and provider of buy now, pay later solutions in Japan for approximately $2.7 billion in cash.
This acquisition will expand PayPal’s capabilities, distribution, and relevance in the domestic payments market in Japan. Japan is the third-largest e-commerce market in the world and would complement the company’s existing cross-border e-commerce business in the country. For this reason, will you consider investing in PYPL stock right now?
Nvidia is a consumer company that focuses on its graphics processing units (GPU). It essentially invented the GPU and has since brought modern computer graphics and revolutionized parallel computing to the masses. Also, its products are mainly used in the gaming and professional visualization markets and boast millions of users worldwide. NVDA stock is up by over 65% in the past year.
In late August, the company announced the availability of its Nvidia AI Enterprise. The comprehensive software suite of AI tools enables hundreds of thousands of companies to virtualize AI workloads on Nvidia-certified systems. For instance, leading manufacturers like Dell Technologies (NYSE: DELL) and Hewlett-Packard Company (NYSE: HPQ) are offering Nvidia-certified systems optimized for AI workloads. Given that AI will drive the next wave of semiconductor growth, the company could be well-positioned for growth in the long run. Given this piece of news, will you consider buying NVDA stock?
Next, we will be taking a look at Etsy. In brief, Etsy’s operations span across four digital commerce marketplaces now. For starters, the company’s flagship Etsy website primarily offers handmade and vintage wares. Additionally, Etsy also operates via its depop, Reverb, and elo7 e-commerce portals. Because of all this, ETSY stock could be a consumer stock to note now.
With the rise in demand for its e-commerce services, I can understand why. The real question now would be whether Etsy still has room to grow moving forward or not. Notably, the company posted solid figures in its recent fiscal quarter report last month. In it, Etsy raked in total revenue of $528 million, marking a 23% year-over-year increase.
Moreover, the company also ended the quarter with over $2.05 billion in cash on hand, a 203% year-over-year leap. When comparing these figures against the backdrop of its explosive 2020 performance, Etsy seems to be hard at work. Would all this make ETSY stock a top pick for you now?
Another name to consider in the consumer space now would be Roku. Overall, most would be familiar with the streaming giant and its hot offerings today. For the uninitiated, Roku not only manufactures video streaming hardware but also connects consumers with streaming services. This includes but is not limited to partnerships with the likes of Disney (NYSE: DIS). As an end-to-end contender in the streaming race now, ROKU stock would be a go-to for investors looking to bet on streaming trends.
Now, ROKU stock currently trades at $322.82 as of Monday’s closing bell. To highlight, the company’s shares have more than doubled in the past year alone. While all this is great, Roku does not seem to be slowing down anytime soon.
Just last week, Roku revealed that its first original film Zoey’s Extraordinary Christmas will be debuting on the Roku Channel this holiday season. All in all, the company appears to be expanding its portfolio of home-grown content. With this in mind, would ROKU stock be worth investing in now for you?