Are These The Best Consumer Stocks To Buy In October 2021?
With the stock market today looking to recover from major losses on Tuesday, could consumer stocks be worth jumping on? Sure, the focus today would be on tech stocks given the rebound seen in the Nasdaq composite today. However, with the current high valuations among the bigger names in tech, investors could be looking elsewhere for now. This would be where consumer stocks come into play. For the most part, as consumer spending trends continue to impress, I could see consumer stocks coming into focus.
Take Lucid Motors (NASDAQ: LCID) for example. The company is an emerging name in the electric vehicle (EV) space now. Starting today, Lucid is beginning production of its flagship Air sedans for customers. By the company’s estimates, deliveries are set to begin in late October. Because of this, LCID is currently up by over 8% at Wednesday’s opening bell.
Elsewhere, pending home sales reportedly surged by 8.1% month-over-month in August. This would see real estate stocks such as Lennar Corporation (NYSE: LEN) gain as well. Overall, consumers appear to be out in full force now. Could that make these companies top picks in the stock market this week?
Top Consumer Stocks To Buy [Or Sell] This Week
- Cal-Maine Food Inc. (NASDAQ: CALM)
- Home Depot Inc. (NYSE: HD)
- American Airlines Group Inc. (NASDAQ: AAL)
- Netflix Inc. (NASDAQ: NFLX)
Cal-Maine Foods Inc.
Cal-Maine Foods is the largest producer and distributor of shell eggs in the U.S. It is on track to also be one of the most sustainable producers of high-quality fresh shell eggs and egg products across the country. Its integrated operations consist of hatching chicks, growing, and maintaining flocks of pullets, layers, and breeders. Spanning over 30 years, it has completed 22 acquisitions ranging in size from 160 thousand layers to 7.5 million layers. CALM stock currently trades at $36.45 going into Thursday’s trading session.
On Tuesday, the company reported its first-quarter financials for fiscal 2022. Firstly, net sales for the quarter were $331.7 million, up by 13.3% year-over-year. CEO Dolph Baker had this to say, “An important competitive advantage for Cal-Maine Foods is our ability to meet our customers’ evolving needs with a favorable product mix of conventional, cage-free, organic, and other specialty eggs and egg products. We have enhanced our efforts to provide free-range and pasture-raised eggs that meet consumers’ evolving choice preferences.”
Secondly, the company also says that its operations continue to run well and it is confident in its growth strategy to provide a favorable product mix and also expand its specialty egg production. All things considered, is this the time to buy CALM stock?
The Home Depot Inc.
Following that, we have Home Depot, the world’s largest home improvement specialty retailer. It operates a total of 2,298 Home Depot retail stores in all 50 states, Canada, and Mexico. In fact, the company had sales of over $130 billion and earnings of $12.9 billion in fiscal 2020.
On average, its typical store has 105,000 square feet of indoor retail space. Besides, its e-commerce business offers more than 1 million products for both its DIY customers and professional contractors. HD stock currently trades $336.93 as of Wednesday’s closing bell.
On September 28, 2021, the company announced that it will invest $10 million in venture capital funds that promote diversity, technology, and entrepreneurship. For instance, they include Base10 Partners, a venture firm investing in automation, and Plexo Capital, an institutional investor that allocates capital to fund the global startup ecosystem. Home Depot says the future of retail lies in technology and innovation, and this would be the company investing in its future. For this reason, will you consider adding HD stock to your list of consumer stocks to buy?
[Read More] What Stocks To Buy Today? 5 Tech Stocks To Watch
American Airlines Group Inc.
Next, we will be taking a look at the American Airlines Group, or AAL for short. In brief, AAL is one of the largest airline operators in the world. For a sense of scale, the company’s flight network consists of almost 350 destinations across 50 countries at max capacity.
As it stands, AAL stock currently trades at $21.01 as of Wednesday’s close. This would be after gaining by over 110% since its pandemic era low. Even with the current resurgence in coronavirus cases locally, the company continues to bolster its services.
As of yesterday, AAL is now partnering up with IndiGo, one of the largest low-cost airline operators in India. Via a code-sharing agreement, the duo can now launch new flights between the two countries. In essence, code-sharing allows airlines to sell seats on flights operated by one another. Given the scale of IndiGo’s operations, this is a solid play by AAL. Pending approval from U.S. and Indian authorities, both companies see a potential commencement of the service in October 2021. As such, would you consider investing in AAL stock now?
Netflix is one of the world’s leading entertainment services, boasting over 200 million paid memberships in over 190 countries. In brief, it boasts a wide catalog of movies, documentaries, and TV series across a wide variety of genres and languages. Also, the company is at the forefront of cord-cutting trends as streaming entertainment continues to replace linear TV. This is a given as consumers can watch content on-demand and on many devices. Furthermore, the experience is personalized to individual tastes.
The company says that it will post its third-quarter financials and business outlook on October 19, 2021. Additionally, the company also recently announced that it has acquired game developer Night School Studio, based known for its critically acclaimed debut game, Oxenfree.
Given Night School Studio’s explorations in narrative gameplay and Netflix’s track record of supporting diverse storytellers is such a natural pairing. Above all, this is in line with the company’s venture towards the gaming industry as it looks to diversify its revenue sources amid intensifying competition in the streaming space. On that note, Netflix has revealed three mobile games which will be available initially in Italy, Poland, and Spain. With that being said, will you consider adding NFLX stock to your portfolio?