Do You Have These Top Consumer Discretionary Stocks On Your Watchlist?
Among the headlines recently, U.S. inflation data dominated the scene as the consumer price index soared by 9.1% compared to the prior year. This will likely strengthen the Federal Reserve’s resolve to hike interest rates. As a result, consumer discretionary stocks may not be the first choice for investors in the stock market now. Having said that, this sector is still making headlines and many of the top names in the industry continue to make progress despite the headwinds.
For instance, competition is still fierce among the top electric vehicle (EV) companies. Hyundai Motor (OTCMKTS: HYMTF) recently launched its first EV sedan, Ioniq 6. This could potentially pose a threat to other EV leaders like Tesla (NASDAQ: TSLA). This will be among the 31 electric models that Hyundai plans to introduce through the end of the decade.
Elsewhere, Apple (NASDAQ: AAPL) continues to make meaningful strides in the streaming world. For the second consecutive year, Apple TV+ broke records with 52 Emmy Award nominations. In less than three years, the company boosted its total number of Emmy Award nominations by more than 40% year-over-year. Overall, it appears that the demand for consumer discretionary products and services are still robust. With that being said, here are five of the top consumer discretionary stocks to note in the stock market today.
Consumer Discretionary Stocks To Watch In Mid-July 2022
- Netflix Inc (NASDAQ: NFLX)
- Nike Inc (NYSE: NKE)
- Amazon.com, Inc. (NASDAQ: AMZN)
- Thor Industries, Inc. (NYSE: THO)
- eBay Inc (NASDAQ: EBAY)
Most people would be aware of what Netflix has to offer. With paid streaming memberships in over 190 countries, subscribers can watch a variety of television (TV) series, documentaries, and feature films in a variety of genres and languages. Making cable TV almost obsolete today, the company allows its users to stream content at any given time and anywhere. One of its main selling points is the ability to continuously watch content without commercials.
That said, the streaming space has seen increasing competition over the past few years. As a result, Netflix has recently selected Microsoft (NASDAQ: MSFT) as its technology and sales partner for its new advertising-supported streaming service. The company plans to sell a cheaper, advertising-supporter alternative to its flagship streaming service by the end of this year. In many ways, this is a necessary step by Netflix to attract more subscribers. So, could this move revitalize the company’s long-term growth plans? If so, would you consider adding NFLX stock to your watchlist?
Following that, we have the global sports brand, Nike. Put simply, this is a company that designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for sports and fitness activities. The primary focus of its brand is in categories such as NIKE Basketball, Football, the Jordan Brand, Running, and more. Nike aims to bring innovation and inspiration to every athlete in the world.
On Wednesday, Nike announced a long-term deal with Fanatics to produce Nike-branded college sports fan apparel. For the uninitiated, Fanatics is a major hub for sports merchandise, valued at approximately $27 billion. Before this, the Fanatics College division already had existing deals with most Nike-sponsored schools. But now, it will collaborate with Nike itself. Fanatics Commerce CEO, Doug Mack, claims that the company is “excited to maximize the value of Nike’s college partnerships.” Given such an encouraging development, could NKE stock continue to grow?
Amazon is a tech giant that provides a range of products and services. The products offered through its stores include merchandise and content that is purchased for resale and products offered by third-party sellers. As cloud adoption continues to rise, the company’s Amazon Web Services (AWS) segment has been thriving, to say the least. In fact, Delta Air Lines (NYSE: DAL) recently announced a multi-year agreement to adopt AWS as its preferred cloud provider. This will help Delta unlock technologies and streamline processes that will make the customer experience faster, smoother, and more secure.
Furthermore, AWS announced on Tuesday the general availability of three new serverless analytics offerings. This includes offerings for Amazon EMR, Amazon Managed Streaming for Apache Kafka, and Amazon Redshift. These offerings will make it even easier for customers to analyze vast amounts of data without the need to configure or manage the underlying infrastructure. All things considered, will you be watching AMZN stock?
Another top consumer discretionary company today is Thor Industries. By and large, the company primarily manufactures and markets recreational vehicles (RVs) and is also the largest manufacturer of RVs globally. Through Thor, consumers have access to towable and motorized RVs. The likes of which are offered via the company’s wide array of subsidiary brands. This includes but is not limited to its Airstream, Heartland RV, and Jayco divisions.
This month, Thor announced a strategic investment in Dragonfly Energy. This is a leading deep-cycle lithium-ion battery producer in the RV industry. Most of its investment will be focused on the deployment of Dragonfly’s innovative storage technologies to support the company’s best-in-class RVs. Also, this goes to show that Thor is continuously looking for ways to improve the user experience of its RVs. All in all, many would agree that energy storage is very important as it will enable more of its customers to boondock and camp off the grid. Keeping this in mind, would you consider THO stock a top consumer discretionary stock to watch?
Lastly, let us look at the global commerce company, eBay. Through its Marketplace platforms, buyers and sellers could connect in more than 190 markets around the globe. Its technology empowers its customers and provides everyone with an opportunity to grow and thrive. Hence, investors with a special interest in the e-commerce sector may want to be keeping an eye on EBAY stock.
In June, eBay announced the acquisition of KnownOrigin, an innovative non-fungible token (NFT) marketplace. The addition of KnownOrigin is an important step for eBay’s vision of being the world’s top destination for collectibles. Also, this will allow artists and collectors to create, buy, and resell NFTs. Thus, this could play a role in supporting eBay’s long-term growth. With that in mind, should EBAY stock receive more attention in the stock market today?