Consumer discretionary refers to a category of consumer goods and services that have the label of non-essential. Also, consumer discretionary items are generally dependent on economic conditions. This sector includes products such as automobiles, recreation and leisure products, retail goods, and services. As well as other goods and services that people buy when they have extra money to spend. Consumer discretionary stocks represent a range of companies involved in the production and distribution of these goods and services.
Investing in consumer discretionary stocks can provide investors with exposure to a range of fast-growing industries. This includes industries such as retail, e-commerce, and travel. The sector can be volatile. This comes as consumer spending is often influenced by economic conditions and changes in consumer preferences. However, well-established and innovative companies in this sector can offer attractive growth opportunities and generate solid returns for investors.
Consumer discretionary stocks are popular with growth investors, who look for companies that can offer above-average earnings growth over time. The sector can also be a good hedge against inflation. This is because consumers often spend more on discretionary goods and services as the economy grows and inflation rises. Consumer discretionary stocks can offer a diversified portfolio exposure to the broader economy. While at the time providing investors with the opportunity to benefit from the long-term growth trends in the global economy. If this has you keen on investing in the consumer discretionary sector, then check out these two consumer discretionary companies in the stock market this week.
Consumer Discretionary Stocks To Watch Today
Home Depot (HD Stock)
First, The Home Depot Inc. (HD is a leading home improvement retailer that operates over 2,200 stores in North America. It provides a wide range of products and services to consumers and professional contractors in the home improvement, maintenance, and repair markets. The company’s product offerings include building materials, home appliances, tools, hardware, and many other products related to home improvement.
This month, Home Depot introduced a new app named Sidekick, which was developed in-house to improve store associates’ task prioritization. The app is an addition to hdPhones, The Home Depot’s mobile devices created to enhance the customer and associate experience. Sidekick utilizes machine learning to determine the importance of various tasks and guide associates to prioritize the highest-demand products. The app also utilizes machine vision to detect and restock out-of-stock products and to locate products in stores.
Year-to-date, Home Depot stock has increased by 1.79%. Also, during Tuesday’s early afternoon trading session, shares of HD stock are trading green on the day by 2.33% at $321.55 per share.
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Starbucks (SBUX Stock)
Second, Starbucks Corporation (SBUX) is one of the largest coffeehouse chains in the world, with over 35,000 locations globally. The company is known for its high-quality coffee, tea, and other beverages, as well as its range of food items and snacks. Starbucks also offers a loyalty program and mobile ordering services that enhance the customer experience. Additionally, the company is expanding its offerings to include home coffee brewing products and has plans to further expand into new markets.
Earlier this month, Starbucks Corporation announced it is set to announce its Q1 2023 financial results on February 2, 2023, after the stock market closes. The company will host a conference call to discuss these results starting at 2 PM Pacific Time, which will be available as a webcast on their investor website, complete with closed captioning.
In 2023 thus far, shares of Starbucks stock have increased by 7.65%. Meanwhile, during Tuesday’s early afternoon trading session, SBUX stock is trading slightly higher on the day by 0.13% at $108.54 a share.