Here Are 5 Top Consumer Discretionary Stocks Making Headlines This Week
As retail figures continue to impress across the board, consumer discretionary stocks among other cyclical stocks are in focus. Rightfully so as consumers continue to take center stage in the stock market today going into the holiday season. By and large, the current momentum in consumer markets appears to be driving investors’ focus on reopening trade players such as Bath & Body Works (NYSE: BBWI). The company’s shares are currently sitting on year-to-date gains of over 130%.
At the same time, consumer discretionary continue to bring their A-game on the operational front. Namely, the likes of Roblox and Nike (NYSE: NKE) are now collaborating. Through this collaboration, we now have Nikeland, a virtual Nike-themed world on Roblox’s gaming platform. At the same time, retailers like Macy’s (NYSE: M) continue to wow investors this earnings season as well. Notably, the company posted an earnings per share of $1.23, crushing Wall Street’s estimates of $0.31. Alongside this stellar quarter, Macy’s also seems to be eyeing a potential spin-off of its booming e-commerce arm. As a result, M stock has more than tripled in value year-to-date.
As a whole, strong consumer spending power appears to be the driving force behind consumer discretionary even amidst inflation concerns. After considering all of this, could these consumer discretionary stocks be top picks in the stock market now?
Top Consumer Discretionary Stocks To Watch Right Now
- Roblox Corporation (NYSE: RBLX)
- Roku Inc. (NASDAQ: ROKU)
- Spotify Technology SA (NYSE: SPOT)
- Zoom Video Communications Inc. (NASDAQ: ZM)
- Walt Disney Company (NYSE: DIS)
Roblox Corporation
Roblox Corporation is a consumer discretionary company that has garnered a lot of attention recently. As mentioned earlier, its latest partnership with Nike appears to be making waves in the market now. Through Nikeland, Roblox users can interact in a Nike-themed virtual world. For instance, users will be able to enter a digital showroom to dress their avatar in everything Nike. Accordingly, the implications of this move could see more businesses expanding into the metaverse space to further monetize their offerings. Against the backdrop of Meta Platforms’ (NASDAQ: FB) metaverse announcement, Roblox’s virtual world-based offerings would also become increasingly relevant. RBLX stock has enjoyed gains of over 60% in the past month alone and currently trades at $136.90 as of 1:22 p.m. ET.
On November 8, 2021, the company reported its third-quarter financials. Diving in, revenue more than doubled year-over-year to $509.3 million. Also, its bookings increased by 28% compared to a year earlier at $637.8 million. As Roblox continues to enjoy growth in all of its core metrics, the company says that it appears to be having a great start to the last quarter of the year. Knowing this, would you add RBLX stock to your portfolio?
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Roku Inc.
Roku is a streaming company that also manufactures a variety of digital media players for video streaming. In fact, the company has pioneered streaming to TV and continues to connect users to the streaming content they love. It also enables content publishers to build and monetize large audiences, providing advertisers with unique capabilities to engage consumers. Roku’s products and services are available to users across the U.S. and in select countries through direct retail sales. With that, ROKU stock currently trades at $235.71 as of 1:23 p.m. ET.
In an article published by the Wall Street Journal today, Roku says that it has plans to develop more than 50 original shows in the coming two years. The company is looking to better monetize the 155 million people living in Roku Households, about half of whom currently watch The Roku Channel. The Roku Channel lets users watch free ad-supported content that Roku licenses from more than 200 other media outlets. Given this piece of news, is ROKU stock worth watching right now?
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Spotify Technology SA
Following that, we have Spotify, a music streaming company that has essentially transformed the way people access and enjoy music. Today, millions of people in over 180 countries and territories have access to its more than 70 million tracks. SPOT stock currently trades at $261.22 as of 1:23 p.m. ET and has more than doubled in valuation since its pandemic era low.
Last week, the company announced the acquisition of Audiobook leader Findaway. Together, this will accelerate Spotify’s entry into the rapidly growing audiobooks industry, enabling faster innovation and bringing audiobooks to Spotify’s hundreds of millions of existing listeners. Findaway will also allow for quick scaling of Spotify’s audiobook catalog and innovate on the experience for its consumers. For this reason, is SPOT stock a top consumer discretionary stock to watch?
Zoom Video Communications Inc.
Following that, we have Zoom Video Communications. Sure, at face value most would not immediately think of Zoom as a consumer discretionary. However, the company’s premium services are becoming an increasingly relevant addition to most household electronics now. For the most part, the ongoing pandemic continues to impact some parts of the world more than others. This would be when Zoom’s industry-leading teleconferencing comes into play.
As it stands, ZM stock currently trades at $252.77 a share as of 1:23 p.m. ET. While investors’ sentiment regarding the company’s shares appears to be dropping off, could it be worth investing in? Well, we could take a look at the company’s latest quarterly financials. In short, Zoom saw green across the board. It raked in a total revenue of $1.02 billion for the quarter, marking a solid 53% year-over-year increase. Additionally, the company also saw year-over-year gains of 70% and 65% in its net income and earnings per share respectively. Not forgetting, all of these figures are in comparison to the early onslaught of the pandemic when Zoom’s offerings were especially hot. With Zoom’s current momentum, would ZM stock be on your watchlist now?
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Walt Disney Company
Topping off our list today is the Walt Disney Company. For one thing, some would argue that Disney covers numerous angles of the consumer discretionary trade today. On one hand, its Disney+ streaming platform caters to stay-at-home-related entertainment spending. On other hand, the company’s theme park and tourism services appeal to eager travelers.
Now, while DIS stock trades at $153.48 as of 1:24 p.m. ET, should investors be keeping an eye on it? Since reporting less-than-ideal figures in its latest quarterly earnings call, DIS stock has been on a decline. However, Disney does not seem to be wavering on its plans to further leverage the current success of its offerings. CEO Bob Chapek notes that the company is making “great strides” in reopening its businesses while expanding its Disney+ library. Could the current weakness in DIS stock be a buying opportunity for eagle-eyed investors?
