Are These The Top Consumer Stocks To Invest In Right Now?
Consumer stocks are one of the most popular sectors for investors in the stock market today. That’s because consumer companies tend to be fairly stable and generate consistent profits year after year. In addition, consumer stocks tend to be less volatile than other types of stocks, making them a good choice for risk-averse investors. While there are many different consumer stocks to choose from, some of the most popular include food and beverage companies, retailers, and consumer goods, manufacturers.
Investing in consumer stocks can be a great way to build a diversified portfolio that generates long-term returns. For example, top consumer stocks such as Amazon.com (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) have proven to be solid investments for investors in recent years. However, it’s important to remember that no stock is guaranteed to make money, and all investments come with inherent risks. With that, let’s dive into four top consumer stocks to watch in the stock market today.
Top Consumer Stocks To Buy [Or Sell] Today
- Uber Technologies Inc. (NYSE: UBER)
- Starbucks Corporation (NASDAQ: SBUX)
- Chipotle Mexican Grill Inc. (NYSE: CMG)
- PepsiCo Inc. (NASDAQ: PEP)
Uber Technologies (UBER Stock)
Kicking off our list today we have Uber Technologies (UBER). The company leverages software as its core business. The mobility-as-a-service provider has operations in over 900 metropolitan areas worldwide. Also, its services range from ride-hailing to food delivery services through its Uber Eats and Postmates platform. Furthermore, Uber has a projected 68% market share in ride-sharing and a 26% market share in food delivery. The company recently reported its second quarter 2022 financial results.
In detail, Uber recorded a loss of $1.33 per share on revenue of $8.1 billion. This is compared with wall street’s estimate was a loss of $0.25 per share on revenue of $7.4 billion. As a result, Uber beat revenue expectations, despite recording a $2.6 billion loss. Lastly, UBER reported a 33% year-over-year increase in gross bookings for the second quarter.
“We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum,” quoted Nelson Chai, CFO. “This marks a new phase for Uber, self-funding future growth with disciplined capital allocation while maximizing long-term returns for shareholders.” Shares of UBER stock are up over 34% in the last month of trading. Is this enough for you to add UBER stock to your watchlist?
Starbucks Corporation (SBUX Stock)
Following that, let’s dive into Starbucks (SBUX). In brief, the company is the biggest coffeehouse chain in the world. On average Starbucks serves approximately 4 billion cups of coffee per year worldwide. Through its global network of more than 34,000 stores, the company serves high-quality arabica coffee to its customers. Earlier this week, Starbucks reported stronger-than-expected fiscal third-quarter earnings.
Specifically, Starbucks posted earnings per share of $0.84 on revenue of $8.2 billion. The consensus earnings estimate was $0.77 per share on revenue of $8.1 billion. As a result, Starbucks beat earnings for this quarter. Additionally, revenue increased 8.7% year-over-year for the year prior. “We have clear line-of-sight on what we need to do to reinvent the company, elevate our partner and customer experiences and drive accelerated, profitable growth all around the world,” said Howard Schultz, interim chief executive officer. Shares of SBUX have rallied over 9% in the last month of trading.
Chipotle Mexican Grill (CMG Stock)
Another notable consumer stock is Chipotle Mexican Grill (CMG). Currently, Chipotle is one of the biggest restaurant companies in the world. The Mexican fast-casual restaurant mainly offers a menu of burritos, tacos, and salads. In the context of scale, it operates more than 2,500 restaurants across the globe, the majority of which are based in the U.S. Aside from that, the company also has a staff of more than 60,000 people. Last week, Chipotle announced its second-quarter earnings and revenue that beat analyst consensus estimates.
In the report, the company reported earnings of $9.30 per share on revenue of $2.2 billion. This is versus analysts’ earnings estimate of $9.03 per share on revenue of $2.2 billion. Adding to that, revenue jumped 17.0% year-over-year for the same time period. This was a result of a 10.1% increase in comparable restaurant sales and new restaurant openings.
“We are pleased with our second quarter performance during a period of inflation and consumer uncertainty,” quoted CEO of Chipotle Brian Niccol. “Our pricing power and value proposition remain strong as our culinary and food with integrity commitment continues to be a key point of differentiation.” With that, is CMG stock a buy right now?
PepsiCo (PEP Stock)
Last but not least, we have beverage giant PepsiCo (PEP). For starters, the company’s portfolio of brands includes Pepsi-Cola, Mountain Dew, Quaker, Cheetos, and others. Additionally, Pepsi has generated greater than $89 billion in net revenue in 2021. What’s more, these brands each generate more than $1 billion in estimated annual retail sales. Last month, PepsiCo reported its second fiscal quarter results.
The company reported earnings of $1.86 per share on revenue of $20.2 billion. Compared with the consensus earnings estimate of $1.73 per share on revenue of $19.5 billion. Furthermore, Pepsi commented that it still estimates 2022 earnings of approximately $6.63 per share and now projects revenue of approximately $85.83 billion. Previously, the company’s guidance was revenue of $84.24 billion, and the current consensus earnings estimate is $6.64 per share on revenue of $82.69 billion for the full year fiscal 2022.
What’s more, Pepsi has also increased its annual dividend payout for its 50th straight year. Considering all of this, will you be buying PEP stock this week?