Are These 2 Top Consumer Stocks On Your July Watchlist?
A trending sector in the market recently has been consumer stocks with a good e-commerce presence. This is because there has been a large increase in online sales. We are all experiencing times that have never been seen before. The coronavirus pandemic caused an economic crash and stock market crash. To avoid catching the virus, people are staying in their homes. Since it is safer to shop online, top consumer stocks have benefitted from this.
So e-commerce focused companies are striving because of the virus. Lots of consumer stocks rebounded or have come close in recent months. Companies that have been able to use successful marketing strategies have managed to stay afloat. Investors of consumer stocks that got in before the virus were able to make a profit. This means there are many good consumer stocks to watch as the market is ever changing.
You may be wondering, what things can drive up the price of an e-commerce stock? Well, the answer is actually quite simple. If a company reports that revenue has gone up, that e-commerce stock could rise. If a company reports that its user base has risen exponentially, the e-commerce stock could rise as well. So I’m sure now you would like to know which consumer stocks to watch in the market are the best. So let’s dive in and look at two trending consumer stocks in the market.
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Top Consumer Stock To Buy [Or Avoid] In July 2020: Nike
The entire world knows the first consumer stock to watch, Nike Inc. (NKE Stock Report). Nike was founded in 1964 and has grown to be the largest athletic shoe and apparel company in the world. In 2018, Nike brought in over $36 billion in revenue. Nike was listed as number 85 on the 2020 Fortune 500 list. Nike also owns large brands Jordan and Converse. It also previously owned surfwear company, Hurley. Nike is known for its swoosh logo and its “Just Do It” tagline. Nike has been able to rebound since the virus began.
When it comes to NKE stock, it has been in a good place recently. Shares of NKE stock were around $100 a share before the economy fell. Then, NKE stock price went under $63 in March due to the economic state. This 37% decrease in NKE stock price was not good for investors. This allowed a new opportunity for investors to buy in at this low price of NKE stock. And if they did, then they definitely made a profit with NKE stock. As of July 3rd, NKE stock price is at $98 a share on average. This means that NKE stock price is just a few dollars short of reaching its previous price.
Do you think that NKE stock will rise to its previous share price. Well, NKE stock price actually did hit $104 a share on June 3rd and June 8th. This means NKE stock reached $4 higher than its previous price. So it is very possible that NKE stock price goes higher than its price before the pandemic. It is just a matter of NKE stock staying at that point once it reaches it. With so much potential in the market, NKE stock is an e-commerce stock to watch for sure.
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Top Consumer Stock To Buy [Or Avoid] In July 2020: Wayfair
The second consumer stock on this list, Wayfair Inc. (W Stock Report) is at a new record high. Wayfair is an e-commerce company that focuses on furniture and home goods type items. It was founded in 2002 and has grown to be a very large site since. It owns other sites such as AllModern, Birch Lane, and more as well. In 2019 alone, Wayfair’s revenue was over $9 billion. Wayfair offers more than 14 million items via its sites.
On July 1st, W stock reached a new record high. Before the economic crash W stock price was at around $96 a share on average. As of July 3rd, W stock is at $214 a share. This is an increase of over 122% for W stock price. This is due to Wayfair improving its sales due to the pandemic. The rise of consumer stocks caused sales to go up, making W stock rise as well.
So it is clear that there are many great consumer stocks to watch in the market. Consumer stocks have been a growing sector due to the fact that many are staying indoors. It will be interesting to see how consumer stocks progress in the coming months. With talks of a second virus wave, consumer stocks could continue to rise higher. Even when the world reopens, people will be skeptical to go shop in person making consumer stocks potential long term investments. So this is what makes NKE stock and W stock potential consumer stocks to buy.