Do You Have These Top Consumer Discretionary Stocks On Your Radar Right Now?

As we close this week of trading, investors could be eyeing consumer discretionary stocks in the stock market today. If anything, this would be thanks to inflation fears being momentarily calmed as the Federal Reserve appears reluctant to withdraw its easy-money policies right now. Furthermore, the market for consumer discretionary spending appears to be on the rise as well. With the overall pace of vaccination and reopening efforts nationwide, consumers would be more inclined to shop in person. Evidently, apparel retailer Gap (NYSE: GPS) saw its latest quarterly sales exceed pre-pandemic levels and raised its full-year revenue forecast. According to Gap, consumers appear keen on “refreshing their wardrobes” this summer.

At the same time, some of the top stay-at-home players in the industry seem to be busy as well. Take home electronics retailer Best Buy (NYSE: BBY) for instance. Yesterday, the company reported a 36% spike in sales year-over-year, citing stimulus-fueled home improvement spending trends among shoppers. Aside from the retail sector, travel and leisure stocks continue to soar as well.

Namely, pent-up demand for in-person entertainment would likely be at an all-time high because of the current pandemic. Accordingly, this would boost consumer spending on companies such as Norwegian Cruise Line (NYSE: NCLH) and Disney (NYSE: DIS). Indeed, the bull thesis on consumer discretionary stocks appears rather convincing now. Having said all that, here are four consumer-focused companies to note in the stock market now.

Consumer Discretionary Stocks To Watch

Canopy Growth Corporation

Canopy is a world-leading diversified cannabis and cannabinoid-based consumer product company. It leverages consumer insight and innovation to offer product varieties in high-quality dried flower, oil, infused beverage, edible, and topical formats. Through the company’s award-winning Tweed and Tokyo Smoke banners, it has reached a wide number of adult-use consumers and has built a loyal following. CGC stock currently trades at $25.72 as of 10:48 a.m. ET and is seeing gains of over 4% during Friday morning’s trading session.

top consumer discretionary stocks (CGC Stock)
Source: TD Ameritrade TOS

In February, the company reported its third-quarter fiscal 2021 financial results. Firstly, Canopy noted improved commercial and operational execution had contributed to a record net revenue of $153 million. This is a 23% increase year-over-year. It also reported that its recreational market share increased by 30 basis points compared to its previous quarter. The company also said that it expects to achieve profitability during the second half of FY 2022 while it continues to invest behind consumer insights, R&D, and the U.S. market.

Last month, Canopy also announced that it will be acquiring the Supreme Cannabis company. The acquisition will allow the company to possess a strengthened brand portfolio with one of Canada’s leading premium brands, 7ACRES. For these reasons, will you consider buying CGC stock?

[Read More] 5 Top Health Care Stocks To Watch Ahead Of June 2021

AMC Entertainment Holdings Inc.

AMC is a movie theater chain that is headquartered in Kansas and is one of the largest movie theater chains in the world. It boasts over 900 theaters and 10,000 screens. The company has theaters all over the world. The company could be making a huge comeback this year as the economy reopens throughout the world. AMC stock continues its rally into Friday’s trading day, the stock is up another 14.83% and is currently trading at $30.80 as of 10:48 a.m. ET. Shares of AMC stock have been up by over 130% since the start of the week. This latest rally could be coming from retail traders buying the popular meme stock.

consumer discretionary stocks (AMC stock)
Source: TD Ameritrade TOS

The company reported its first-quarter financials earlier this month. In it, AMC says that it was operating at 585 domestic theatres and 97 international leased and partnership theaters with limited seating capacities. Also, it reported that it is looking at an increasingly favorable environment for movie-going and AMC as a company over the coming few months.

This is of course due to a successful and steadily growing vaccination program in the U.S., Europe, and the Middle East. Given all of this, is AMC stock a top consumer discretionary stock to add to your portfolio?

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General Motors Company

General Motors is a consumer discretionary company that focuses on advancing an all-electric future that is inclusive and accessible to all. At the heart of the company’s business strategy is its Ultium battery platform. Ultium powers everything from its mass market to high-performance vehicles. The company’s four core automobile brands are Chevrolet, Buick, GMC, and Cadillac. GM stock currently trades at $58.96 as of 10:50 a.m. ET and is up by 40% year-to-date.

best consumer discretionary stocks (GM Stock)
Source: TD Ameritrade TOS

Last week, the company announced that it has teamed up with Lockhead Martin (NYSE: LMT) to develop a next-generation lunar rover for NASA’s Artemis astronauts to explore the moon. General Motors is a leader in battery-electric technologies and propulsion systems after all.

Additionally, the company will also use autonomous technology to facilitate safer and more efficient operations on the moon. If anything, this would be a testimony to General Motors’ technological prowess and innovation by participating in this partnership. Given the excitement surrounding the company, will you consider buying GM stock?

[Read More] Hot Stocks To Buy Now? 5 Cyclical Stocks To Watch

Hexo Corporation

Last but not least, we have another cannabis company, the Hexo Corporation. In brief, Hexo is an award-winning cannabis-based consumer packaged goods provider. The company creates and distributes innovative products to both the medical and recreational markets worldwide. Given the current legislative momentum of marijuana in the U.S. now, investors could be watching HEXO stock closely. As it stands, the company’s stock is up by over 110% in the past year. HEXO stock is currently trading at $7.16 a share as of 10:47 a.m. ET and is up over 9% on Friday’s opening bell.

consumer discretionary stocks to buy (HEXO stock)
Source: TD Ameritrade TOS

For the most part, Hexo does not seem to be resting on its laurels just yet. Earlier today, the company finalized its massive $925 million acquisition of Redecan, Canada’s largest privately-owned licensed cannabis producer. Notably, this would make Hexo the leading name in the Canadian recreational market in terms of market share. Safe to say, this is a bold yet strategic play by the company as the addressable market for recreational marijuana continues to grow.

Not to mention, this marks Hexo’s second acquisition this month, after its $41 million takeover of Ontario-based peer 48North Cannabis. According to CEO Sebastien St-Louis, 48North’s “innovative product portfolio” synergizes well with Hexo’s current offerings. With the company firing on all cylinders now, would you say HEXO stock has more room to grow moving forward?


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