The consumer sector is a broad category within the stock market that includes companies primarily involved in producing goods and services for personal use. This sector is often divided into two subcategories: consumer discretionary and consumer staples. Consumer discretionary companies sell non-essential goods and services, such as luxury items, automobiles, and electronics, which tend to be more sensitive to economic cycles. On the other hand, consumer staples companies provide essential products like food, beverages, and household items, which are generally in steady demand regardless of economic conditions.
Investing in consumer stocks can offer several advantages. For starters, consumer staples stocks provide a level of stability during economic downturns, as demand for essential goods remains constant. This makes them an attractive option for risk-averse investors seeking steady dividend income. Consumer discretionary stocks, while more volatile, offer higher growth potential during economic expansions as consumers tend to spend more on non-essential items.
However, there are also disadvantages to consider. Consumer discretionary stocks can be quite risky during economic recessions, as reduced consumer spending can significantly impact their revenues and profits. Moreover, both subsectors face intense competition and regulatory challenges, which can affect their long-term profitability. Investors need to carefully consider their own risk tolerance and the current economic environment when investing in consumer stocks. Considering this, let’s look at two large-cap consumer stocks to watch in the stock market today.
Consumer Stocks To Invest In [Or Avoid] Today
Target (TGT Stock)
Initially, Target Corporation (TGT) is a major retail company. It operates large retail stores throughout the United States offering a wide array of goods, including apparel, electronics, food, and home furnishings. The company is popular for its combination of quality, value, and convenience.
Last month, Target Corporation announced that its board of directors declared a regular quarterly dividend of $1.10 per common share. This dividend is scheduled for payment on June 10, 2024, to shareholders of record as of May 15, 2024. This upcoming payment marks Target’s 227th consecutive dividend since it became publicly traded in October 1967.
Since the start of the year, shares of Target stock are up 14.26% YTD. With that, during Tuesday’s late morning trading session, TGT stock is trading down on the day thus far by 0.91% at $163.51 a share.
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Walmart (WMT Stock)
Next up, Walmart Inc. (WMT) is one of the largest retail corporations in the world by revenue. The company operates a chain of hypermarkets, discount department stores, and grocery stores globally. The company also has a robust e-commerce platform, offering online shopping with various delivery and pickup options.
This month, Walmart announced that its 2024 Annual Shareholders’ Meeting is scheduled for Wednesday, June 5, 2024. The meeting will occur virtually at 10:30 a.m. CDT, allowing shareholders to participate online via a live audio webcast. Formal business and proxy proposals will be discussed. Additionally, Walmart will celebrate its associates and shareholders on June 7 at the Bud Walton Arena in Fayetteville, Arkansas.
Year-to-date, shares of Walmart stock have increased by 13.05% so far. While, during Tuesday’s late morning trading action, WMT stock is trading green up 0.17% on the day, trading at $60.03 a share.
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