Top Consumer Stocks To Consider Buying Right Now
In an increasingly consumer-focused world, it would make sense that consumer stocks are among the most active stocks now. Whether it is consumer discretionary or consumer defensive stocks, the sector continues to stand out in today’s stock market. For instance, companies in the conventional leisure industry are seeing major tailwinds now. Thanks to growing vaccination figures, more consumers are currently traveling. As a result, investors may be looking at the top travel stocks now. Just this week, Trip.com (NASDAQ: TCOM) received a rosy analyst update from Morgan Stanley (NYSE: MS). In it, analyst Alex Poon upgraded the Shanghai-based online travel company from equal weight to overweight. Poon cites improving travel trends in China as a key reason for this update.
At the same time, restaurant chains such as McDonald’s (NYSE: MCD) appear to be kicking into high gear as well. Last week, the company revealed that it would be raising its hourly wages and hiring an additional 10,000 workers. While McDonald’s seems to be bolstering its services, MCD stock continues to rise past pre-pandemic levels. Another example of this would be Texas Roadhouse (NASDAQ: TXRH). Particularly, Deutsche Bank (NYSE: DB) analyst Brian Mullan hit TXRH stock with a buy rating. Across the board, the consumer industry looks to be gaining momentum. Should that be the case, I could see consumer stocks following suit. Having said all that, here are four top consumer stocks in focus in the stock market this week.
Consumer Stocks To Buy [Or Sell] This Week
- AT&T Inc. (NYSE: T)
- Paysafe Limited (NYSE: PSFE)
- Penn National Gaming Inc. (NASDAQ: PENN)
- Airbnb Inc. (NASDAQ: ABNB)
AT&T is a multinational conglomerate holding company. It is one of the world’s largest telecommunications companies and is also the parent company of mass media conglomerate WarnerMedia. This essentially makes the company one of the world’s largest media and entertainment companies in terms of revenue. T stock currently trades at $31.32 going into Monday’s closing bell. Today, the company announced that WarnerMedia and Discovery Inc. (NASDAQ: DISCA) will be merging to form one of the largest global streaming players in the industry.
Under the terms of the agreement, AT&T would receive $43 billion in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, and AT&T’s shareholders would receive stock representing 71% of the new company. Also, Discovery shareholders would own 29% of the new company.
Through this merger, the new company will have significant scale and investment resources. Its projected 2023 revenue is expected to be approximately $52 billion. It will also bring together the strongest leadership teams, content creators, and high-quality series and film libraries in the media business. With that in mind, will you consider buying T stock?
Paysafe is a multinational online payments company. With over 20 years of experience, the company takes pride in its ability to combine scale with efficiency. It offers an unrivaled portfolio of proprietary solutions that empower consumers and businesses to connect using its platform. From online to in-store payments and alternative payments to omnichannel and secure cross-border e-commerce, the company provides an all-in-one solution for users. Last week, the company reported its first-quarter financials for 2021 and reaffirmed its 2021 outlook.
To start things off, its revenue of the quarter was $377.4 million, a 5% increase year-over-year. Its total payment volume was $27.7 billion, an increase of 8% compared to the year earlier.
Philip McHugh, CEO of Paysafe, stated, “We made excellent progress on our strategic initiatives across North American iGaming and emerging eCommerce verticals, while achieving milestones to further scale our platform and unlock value. Looking ahead, with our great market positions and unique, two-sided network, we believe that Paysafe remains well-positioned to deliver consistent double-digit growth and drive operating leverage.” All things considered, will you buy PSFE stock?
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Penn National Gaming Inc.
Penn National is one of the largest and most diversified regional gaming companies in the U.S. In essence, it owns or has ownership interests in 41 gaming and racing properties across 19 states and video gaming terminal operations. The company continues to evolve into a highly innovative omnichannel provider of online gaming, live racing, and sports betting entertainment. PENN stock currently trades at $80.96 as of 3:59 p.m. ET.
Last Friday, it announced that the Indiana Gaming Commission (IGC) has approved the company’s application to offer online sports wagering in Indiana. The company plans to launch its Barstool Sportsbook mobile app tomorrow, pending any final regulatory approvals.
Once live, Indiana will become the company’s fourth online sports betting market, following previously successful launches in Pennsylvania, Michigan, and Illinois. Earlier this month, the company also announced impressive first-quarter results. In brief, it posted a revenue of $1.27 billion and a net income of $90.9 million. It reports that it is benefiting from strong demand for its land-based casinos and continues to improve its cost structure. Given all of this, will you consider adding PENN Stock to your portfolio?
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Topping off our list is leading vacation rental company, Airbnb. For the uninitiated, the company primarily operates via a virtual travel-focused marketplace. Consumers can access this marketplace via the Airbnb website or through the company’s mobile app. In short, travels can make bookings for vacation homestays and tourism activities through Airbnb. For a sense of scale, the company boasts a network consisting of 4 million hosts across 100,000 cities globally. Understandably, investors who are keen to bet on the growing consumer travel trends could be looking at ABNB stock. Given the current weakness in the stock, would it be wise to buy on the dip?
If anything, CEO Brian Chesky, appears confident about the company’s trajectory moving forward. In an interview with Yahoo Finance last week, Chesky identified a key travel trend that could be long-term. Based on the figures from Airbnb’s latest quarter fiscal, eager travelers are already taking short ‘stay-cations’ less than 50 miles away from home.
Moreover, a quarter of these stays lasted 28 days or more. Chesky believes that this shows the growing interest of consumers towards longer stays for leisure. Coupling all this with Airbnb’s recent quarter revenue beating analysts’ estimates, things could be looking up for the company. Would this make ABNB stock a sound investment now? You tell me.