5 Top Consumer Discretionary Stocks To Watch Today
As we kick off the last trading week of the year, investors may want to consider consumer discretionary stocks. For the most part, this could be thanks to several elements at play in the stock market today. After all, the final week of the year is where things quiet down across the board. In other words, there are often lower trading volumes and minimal economic and earnings data to consider. As a result, a bout of volatility from traders looking to ride a potential Santa rally would not be surprising.
Now, what does all this have to do with consumer discretionary stocks might you ask? Well, with the current broad-based strength in consumer spending, investors may be keen to jump on these names. This would especially be the case should they be anticipating a rise in stocks. Moreover, there are also positive findings from the U.K. Health Security Agency regarding the Omicron coronavirus variant to consider. Last week, studies pointed towards the variant being 70% less likely to cause hospitalizations than the Delta variant.
By and large, once you pair these two significant data points together, consumer discretionary stocks could be appealing to some. For one thing, consumers continue to come out in full force during this holiday season. Over the Christmas weekend, Sony (NYSE: SONY) revealed that its latest blockbuster hit co-produced with Disney (NYSE: DIS) Spider-Man: No Way Home crossed the $1 billion mark in terms of box office sales. As such, should you be keeping an eye on these top consumer discretionary names in the stock market now?
Top Consumer Discretionary Stocks To Buy [Or Sell] Ahead Of 2022
- Apple Inc. (NASDAQ: AAPL)
- Avis Budget Group Inc. (NASDAQ: CAR)
- Nike Inc. (NYSE: NKE)
- Penn National Gaming Inc. (NASDAQ: PENN)
- Expedia Group Inc. (NASDAQ: EXPE)
First on this list, we have Apple, a consumer discretionary company that specializes in tech products and services. In fact, the company says it has over 1.5 billion active devices worldwide, cementing its products’ appeal to the masses. Its Apple TV+ streaming subscription service offers a selection of original production films and television series called Apple Originals. AAPL stock currently trades at $178.58 as of 11:37 a.m. ET. Recently, it was reported that Apple has hired Meta Platforms’ (NASDAQ: FB) AR Communications lead Andrea Schubert.
This follows the company’s latest developments on the most advanced chips for its unannounced AR/VR headsets. Rumors continue to surround Apple’s headset, with Bloomberg previously reporting that the headset will be far more expensive than those from its rivals. The new AR/VR headsets could hit stores by 2022 and would fall in line with other companies expanding into the metaverse. Given this piece of news, is AAPL stock worth investing in?
Avis Budget Group Inc.
Avis is a leading global provider of mobility solutions, both through its Avis and Budget brands, which have more than 10,000 rental locations in over 150 countries around the world. It also owns the Zipcar brand, which is the world’s leading car-sharing network with more than one million members. The company operates most of its car rental offices in North America, Europe, and Australasia directly. CAR stock currently trades at $226.31 as of 11:37 a.m. ET and has risen by over 500% in the past year alone.
Last month, it reported its third-quarter financials. Diving in, total revenue for the quarter was $3 billion, increasing by 96% year-over-year. It also posted a net income of $674 million compared to $45 million a year earlier. With that being said, is CAR stock a top consumer discretionary stock to buy right now?
Following that, we have Nike, a sports apparel and footwear company. It is one of the largest suppliers of athletic shoes and apparel in the world and is also a major manufacturer of sports equipment. The company markets its products under a wide portfolio of brands that include Air Jordan and Nike+. NKE stock currently trades at $166.17 a piece as of 11:38 a.m. ET.
Last week, the company reported its second-quarter financials for fiscal 2022. Diving in, revenue for the quarter was $11.4 billion while its Nike Direct sales were $4.7 billion. Its digital sales increased by 12% year-over-year. Net income for the quarter was $1.3 billion, up by 7% year-over-year. Given the impressive quarter, would you consider buying NKE stock?
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Penn National Gaming Inc.
Another name to consider among consumer discretionary firms now would be Penn National Gaming (PENN). Notably, PENN currently operates the biggest and most diversified regional gaming footprint in the U.S. For a sense of scale, the company’s entertainment portfolio consists of 44 properties located across 20 states. Not to mention, PENN is also actively working to bolster its online gaming offerings as well. With the company looking to create a highly interactive omnichannel gaming portfolio, investors could be eyeing PENN stock now.
As it stands, the company’s shares currently trade at $50.70 as of 11:38 a.m. ET. This would be after gains of over 500% since its pandemic era low. Even so, the company does not seem to be slowing down anytime soon. Just last week, PENN celebrated the grand opening of its fourth gaming and entertainment facility in Pennsylvania. Named Hollywood Casino Morgantown, it is a $111 million state-of-the-art casino. With all this in mind, would you consider PENN stock a buy today?
Expedia Group Inc.
Last but not least, we will be taking a look at Expedia Group. For the uninitiated, the company primarily acts as an e-commerce hub for travel-related services. Through its comprehensive array of websites, Expedia serves eager travelers, across the globe. It accomplishes this via its core travel fare aggregators and travel metasearch engines. This includes but is not limited to its Expedia.com, Vrbo, Hotels.com, Trivago, and CarRentals.com sites. EXPE stock now trades at $181.38 a share as of 11:39 a.m. ET.
All in all, Expedia continues to power forward throughout the current pandemic. This is evident from its latest quarterly earnings report posted last month. In it, the company saw green across the board. Namely, Expedia posted year-over-year gains of 96% and 295% in revenue and net income respectively. Furthermore, the company’s earnings per share also surged by over 244% over the same period. CEO Peter Kern cites “superior performance from Vrbo and domestic travel” and “improvements across virtually all lines of business” as growth drivers for the quarter. Having read all this, will you be adding EXPE stock to your portfolio?
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