The consumer sector, also known as the consumer goods sector, is a category of stocks that relates to items purchased by individuals and households for their daily needs. Think of things you buy when you go shopping, like food, clothes, or even a new TV. Companies in this sector make and sell these products. When you hear about consumer stocks, it refers to the stocks of these companies that are available for people to buy and invest in.
Now, consumer stocks are often divided into two main types: consumer discretionary stocks and consumer staples stocks. Consumer discretionary stocks are companies that sell things people want but don’t necessarily need. For example, like a new video game or a vacation. These types of stocks tend to do better when the economy is doing well. This is because people have extra money to spend.
On the other hand, consumer staples stocks are companies that sell items people need no matter what, like food or toothpaste. These stocks tend to be more stable. Even when the economy is not doing so well, because people always need these products. Investing in consumer stocks can be a way to make money if the companies do well and their stock prices go up. With that being said, here are three consumer stocks to check out in the stock market now.
Consumer Stocks To Watch Right Now
Coca-Cola Company (KO Stock)
First up, The Coca-Cola Company (KO) is a global beverage giant, known primarily for its flagship product, Coca-Cola. The company offers more than 500 brands in over 200 countries and territories.
In the previous month, Coca-Cola announced its financial results for the first quarter of 2023. The company managed to exceed expectations by reporting earnings of $0.68 per share, and a revenue of $11.0 billion. This performance outperformed the projections made by Wall Street analysts, who had anticipated earnings of $0.65 per share and revenue of $10.8 billion. Notably, the company’s revenue experienced a growth of 4.7% when compared to the same timeframe in the previous year.
Additionally, on Tuesday ahead of the lunchtime trading session, shares of KO stock are trading slightly lower on the day so far by 0.89% at $63.37 a share.
Home Depot (HD Stock)
Second, Home Depot (HD) is the world’s largest home improvement retailer, offering everything from appliances to construction materials to services like home installations. The company operates in the U.S., Canada, and Mexico.
Today, Tuesday, Home Depot reported its first quarter of 2023 earnings results. In detail, the company notched in earnings of $3.82 per share, along with revenue of $37.3 billion. This is in comparison to consensus estimates which were earnings of $3.80 per share, on revenue estimates of $38.6 billion. Moreover, Home Depot said it estimates fiscal year 2024 earnings in the range of $14.52 to $15.52 per share, with revenue estimates of $139.53 billion to $154.26 billion.
Additionally, during Tuesday’s early afternoon trading action, shares of Home Depot stock are trading lower on the day so far by 1.62% at $283.88 per share.
[Read More] 3 Cyclical Stocks To Watch In May 2023
Starbucks Corporation (SBUX Stock)
Last but not least, Starbucks Corporation (SBUX) is a leading coffeehouse chain with a global presence, known for its premium coffee, tea, and a variety of food items. With thousands of stores in cities around the world, Starbucks has a strong brand and significant customer loyalty.
At the beginning of this month, Starbucks announced a beat for its second quarter 2023 financial results. Getting straight to it, Starbucks posted Q2 2023 earnings of $0.74 per share, with revenue of $8.7 billion. This came in better than analysts’ estimated which was earnings of $0.64 per share, with revenue estimates of $8.4 billion. As a result, revenue grew by 14.2% versus the same period, the previous year.
Moving along, on Tuesday during the lunchtime trading session, shares of SBUX stock are trading modestly lower on the day so far by 0.69% at $105.90 a share.