These Top Consumer Stocks Have Been Front And Center In The Markets This Month
Consumer stocks have been gaining momentum recently. The sector itself comprises companies that produce and sell items for everyday use. They can be essential or non-essential items. Given how we have come to live in a world where it is so easy to buy anything, global consumerism has exploded into the scene. From retail to e-commerce, the possibilities are endless. However, with the advent of the pandemic last year, these consumer stocks took a hard beating. Today, things do look more optimistic than ever. President Joe Biden announced on Wednesday that the U.S. expects to take delivery of enough coronavirus vaccine for all adults by the end of May, two months earlier than expected. On Tuesday, Biden also announced that drugmaker Merck (NYSE: MRK) will help produce rival Johnson & Johnson’s (NYSE: JNJ) newly approved one-shot vaccine.
With the vaccination efforts moving at breakthrough speeds, will consumer companies like Kroger (NYSE: KR) and Gap (NYSE: GPS) increase in valuation? This could be the case given how Senate Democrats and President Joe Biden settled a last-minute debate over the president’s $1.9 trillion pandemic relief bill on Wednesday. This could get the stimulus to Americans who need them the most to kick-start the economy again. Once that happens, consumer stocks could rise again to pre-pandemic levels. Given all of this, here are four top consumer stocks to watch in the market right now.
Best Consumer Stocks To Watch Now
- Tanger Factory Outlet Centers Inc. (NYSE: SKT)
- Burlington Stores Inc. (NYSE: BURL)
- Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB)
- Costco Wholesale Corporation (NASDAQ: COST)
Tanger Factory Outlet Centers Inc.
Tanger is a real estate investment trust that invests in shopping centers containing outlet stores. The company is a leading operator of upscale open-air outlet centers, with a portfolio of 36 centers. It recently posted impressive numbers in its most recent quarter. Impressive because most traditional brick-and-mortar businesses were among the hardest hit during the pandemic. Could this be an encouraging sign for investors to dive into SKT stock? The company’s shares have pulled back during Thursday’s afternoon trading session at $17.01 as of 2:30 pm. This comes after SKT stock jumped up by over 20% on today’s opening bell.
This latest rally seems to be coming from retail traders at the r/WallStreetBets community on Reddit. In detail, investors in that community appear to be coordinating a short squeeze on SKT stock. Also, this appears to be the same as what the community tried to do to companies like GameStop (NYSE: GME) and BlackBerry (NYSE: BB) in January. In February, the company reported its fourth-quarter financials. Tanger states that its business continues to improve as consumers embrace open-air outlet centers as a preferred venue for shopping and entertainment. Its customer traffic was approximately 90% of prior-year levels during the fourth quarter. With momentum picking up for the company, will you consider buying SKT stock?
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Burlington Stores Inc.
Burlington is a national off-price department store retailer. Furthermore, the company is a Fortune 500 company with over 760 stores in 45 states and Puerto Rico. Its stores offer an extensive selection of in-season, fashion-focused merchandise at up to 60% off other retailers’ prices every day. BURL stock is up by 13% after announcing an upbeat earnings report today. Its shares are currently traded at $287.79 as of 2:32 p.m. ET. and has more than doubled since the March 2020 lows.
In its fourth-quarter financials today, the company reported a total sales of $2.279 billion, a 4% increase year-over-year. Furthermore, net income for the quarter was $156 million or an earnings per share of $2.33. The company is weathering through the pandemic through its Burlington 2.0 strategies which include chasing sales, buying opportunistically, and operating with leaner inventories. Burlington also announces the expansion of its store count potential to 2,000 stores. All things considered, will you buy BURL stock?
Red Robin Gourmet Burgers Inc.
Red Robin is a chain of casual dining restaurants. The company has over 540 restaurants across the United States and Canada. Despite the hurdles that came with 2020, the company has taken advantage of the opportunity created by the pandemic to improve the guest experience and strengthen its enterprise business model. Red Robin announced its fourth-quarter financials yesterday. RRGB stock is currently up 8.10% and is trading at $34.07 as of 2:33 p.m.
In its latest quarter, the company reported a total revenue of $201.1 million, a 33.6% decrease primarily due to the impacts of the pandemic. CEO of Red Robin, Paul J.B. Murphy III had this to say, “There is no doubt that increased dining restrictions during the fourth quarter in California, Colorado, Oregon, and Washington had a significant, negative impact to our topline momentum. However, we are bullish as we look to the future reopening of these markets, which represented almost 40% of our 2019 restaurant sales. We are very encouraged by our recent sales trajectory, and as capacity restrictions loosen in these Western markets, we believe our geographic mix will drive sales growth that outpaces the industry.” For these reasons, do you think RRGB stock is worth buying?
Costco Wholesale Corporation
Costco operates an international chain of membership warehouses. The company’s stores carry quality, brand-name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. Its warehouses help small to medium-sized businesses to reduce costs in purchasing. Costco has one of the largest and most exclusive product category selections under a single roof. The company will announce its second-quarter financials after the market closes today. COST stock trades at $317.13 as of 2:33 p.m. ET.
Analysts are expecting the company to beat revenue and earnings expectations, driven by growth in comparable sales. Costco has been firing on all cylinders during the pandemic. The reason being that more consumer dollars are getting directed towards goods rather than experiences. Impressively, the company’s sales have surged by almost 12% in fiscal 2020 even though it did not invest in curbside pickup or other omnichannel strategies that would have raised expenses. In its latest January sales report, the company reported that comparable sales in e-commerce increased by a whopping 106.7%, signaling the shift of consumers to digital purchases. With that said, will you consider buying COST stock?