Check Out These Consumer Discretionary Stocks Right Now

With soaring inflation and rising interest rates, it seems that consumers are not letting any of it slow down their spending. Retail sales for the month of April rose by 0.9%, according to the Department of Commerce. This would suggest that despite the inflationary pressures on household incomes, the rise in prices is yet to have a  material impact on discretionary spending. As such, consumer discretionary stocks could be the focus of the stock market this week.

Investors could be watching the likes of Sonos (NASDAQ: SONO) for instance. The smart-speaker maker’s revenues and earnings in the past quarter came in better than expected last week. These results reflect the company’s strong underlying demand which it continues to see. Alternatively, with the summer holidays approaching, Airbnb (NASDAQ: ABNB) could be worth noting. The company is betting on a summer of travel to drive its second-quarter revenue growth. In its earnings letter, Airbnb said it expects to see revenues between $2.03 billion to $2.13 billion in the coming quarter, surpassing analyst expectations of $1.96 billion. And with that, here are some of the best consumer discretionary stocks to check out in the stock market today. 

Consumer Discretionary Stocks To Buy [Or Sell] Now

The Container Store

The Container Store Group (TCS) is a leading specialty retailer of storage and organization products and solutions. The company provides a collection of creative, multifunctional, and customizable storage products that are sold in-store and online. In fact, the company has more than 11,000 products for consumers to choose from. The Container Store operates 94 stores across the U.S., with an average store size of 25,000 square feet. 

The Container Store yesterday reported its fiscal fourth-quarter and full-year financials for fiscal year 2021. To start, let’s take a look at its revenues. For the full year, TCS brought in consolidated net sales worth $1.1 billion, up by 10.5% compared to fiscal 2020, and up 19.5% compared to fiscal 2019. Along with that, it also raked in record earnings per diluted share of $1.62 for the full year. For comparison, TCS reported earnings per share of $1.17 in fiscal 2020 and $0.30 in fiscal 2019. Considering the solid performance, would you be adding TCS stock to your portfolio?

TCS stock chart
Source: TD Ameritrade TOS

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United Airlines

Following that, we have United Airlines, a company that operates one of the biggest airlines in the U.S. The company has one of the most comprehensive route networks among North American carriers. United on Monday announced an updated outlook which investors may be happy to hear. Particularly, the airline company has boosted its revenue outlook for the second quarter of 2022 owing to strong travel demand. 

United said it now expects total revenue per seat mile to be up by 23%-25% compared with 2019 levels. For comparison, it previously predicted an increase of approximately 17% for the second quarter. In other news, the Federal Aviation Administration has cleared United to resume service on more than 50 Boeing (NYSE: BA) 777 planes that were grounded over engine issues. This comes at a time where United and other airlines gear up for a heavy summer travel season. Andrew Nocella, United’s Chief Commercial Officer said, “Everything is really strong. We often talk about ‘Is this the strongest environment we’ve ever seen?’ Absolutely.” Thus, should you buy UAL stock?

UAL stock chart
Source: TD Ameritrade TOS

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Lulu’s Fashion Lounge

Another consumer discretionary stock to note would be Lulu’s Fashion Lounge, or Lulus for short. In essence, Lulus is a customer-driven, digitally native fashion brand for women. For a sense of scale, the company serves millions of customers worldwide. Lulus develops styles with the customer in mind, using direct consumer feedback and insights to refine its products. Impressively, the company brings in a fresh inventory of styles to its site almost on a daily basis. It features on-trend, high-quality, must-have pieces, at affordable prices.

Yesterday, the company reported its financial results for its first quarter of 2022. Jumping right in, Lulus brought in a strong net revenue of $111.9 million, up by 62% from $69.0 million in the year prior. This also represents the company’s highest quarterly net revenue in its history. Alongside that, net income came in at $2 million compared to a loss of $1.38 million a year ago. Lulus also says that it is positioned well to grow despite inflation and supply chain pressures. As such, would you watch LVLU stock?

LVLU stock chart
Source: TD Ameritrade TOS

Tapestry 

Tapestry is a multinational luxury fashion holding company. It is the parent company of popular brands such as Coach, Kate Spade New York, and Stuart Weitzman. The company’s products are based on great design, quality, and craftsmanship. And for a sense of scale, the company hires over 20,000 employees and is a Fortune 600 company. Over the past week, TPR stock has risen by more than 15%. Last week, the company reported its third-quarter fiscal 2022 results.

Starting with sales, Tapestry reported $1.44 billion in net sales, rising 13% from last year’s $1.27 billion. This growth was fueled by strong Digital revenue gains, which rose over 20% against last year. Sales at each of its brands saw double-digit increases as well. Net income for the quarter was $123 million and earnings per share were $0.46. In comparison, income from the year-ago period was $92 million with earnings per share of $0.32. All things considered, is TPR stock worth adding to your watchlist?

TPR stock chart
Source: TD Ameritrade TOS

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Marriott International 

Finally, we have Marriott. In brief, the company operates a massive hospitality portfolio consisting of over 8,000 properties throughout its 30 industry-leading brands. This network of leisure businesses spans 139 countries and territories worldwide. As spending on travel remains high, Marriott could be a company investors are watching right now. Earlier this month, the company posted its first fiscal quarter results. 

Marriott saw its 2022 comparable systemwide constant dollar Revenue per Available Room (RevPAR) surge 96.5% year-over-year worldwide. In the U.S. and Canada, this figure grew 99.1%. On top of that, the company reported earnings of $1.14 per share for the quarter. This represents a huge bounce back from its loss per share of $0.03 in the same quarter last year. According to Marriott, demand for travel remains robust in April, and the company expects leisure travel to remain strong moving forward, as business travel and cross-border travel gain momentum. Given the positive prospects, is MAR stock worth buying?

MAR stock chart
Source: TD Ameritrade TOS

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