Investing in the stock market allows individuals to purchase shares in companies, offering the potential for capital gains and dividends. The market includes various sectors, each with its own characteristics and performance metrics. One such sector is the consumer sector, which is made up of companies that produce goods and services for personal and household use. This sector is broadly divided into consumer staples, which are necessities, and consumer discretionary, which are non-essential goods and services. The performance of consumer stocks often reflects the overall health of the economy and consumer spending trends.
Investing in consumer stocks has its advantages. Consumer staples are considered defensive investments, often remaining stable during economic downturns. They provide consistent demand, making them a safer bet during uncertain times. On the other hand, consumer discretionary stocks can offer higher growth potential during economic expansions. However, these stocks also come with disadvantages. Consumer discretionary stocks are more vulnerable to economic downturns, as they depend on consumer spending. Additionally, the consumer sector is subject to changing trends and competition, which can impact company performance.
When investing in consumer stocks, it’s important to consider the economic cycle and consumer behavior. Investors should stay informed about market trends, company performance, and economic indicators. That said, here are two consumer stocks to check out in the stock market right now.
Consumer Stocks To Invest In [Or Avoid] Today
- Starbucks Corporation (NASDAQ: SBUX)
- Walmart Inc. (NYSE: WMT)
Starbucks (SBUX Stock)
First, Starbucks Corporation (SBUX) is a leading roaster, marketer, and retailer of specialty coffee worldwide. The company is a global coffeehouse chain with thousands of locations across the globe. Additionally, Starbucks offers a range of coffee and tea products, along with food items.
Just this week, Starbucks reported its Q1 2024 financial results. In the report, the company posted earnings of $0.90 per share, with revenue for the quarter of $9.43 billion. For context, this is versus Wall Street’s estimates for the quarter, which were an EPS of $0.92, with revenue estimates of $9.65 billion. Though, revenue increased by 8.16% compared to the same period, the previous year.
Moreover, during Wednesday’s morning trading session opened higher by 0.36%, currently trading at $94.42 a share. Additionally, over the last five trading days, shares of SBUX stock are up 2.39%.
[Read More] 3 Blue Chip Stocks To Watch Ahead Of February 2024
Walmart (WMT Stock)
Following that, Walmart Inc. (WMT) is the world’s largest retail corporation, operating a chain of hypermarkets, discount department stores, and grocery stores. The company is known for its wide range of products at low prices, including groceries, electronics, apparel, and household items.
Just this week, Walmart announced a 3-for-1 stock split of its common stock. This decision is part of Walmart’s ongoing effort to ensure optimal trading levels and to make stock ownership more accessible to its associates. Currently, over 400,000 associates participate in Walmart’s Associate Stock Purchase Plan. The stock split is aimed at encouraging more associates to take advantage of these stock purchase benefits.
Moving along, during Wednesday morning’s trading session, Walmart stock opened higher by 0.29% on the day so far, trading at $166.08 a share. In addition, over the last five trading days, shares of WMT stock have advanced by 2.91%.
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