Are These The Best Consumer Stocks To Buy Now? 3 Names To Consider
It has been a long year indeed for consumer stocks. These include companies in the food, retail, and e-commerce to name a few. The companies behind these stocks depend on consumer spending habits which have been heavily affected most of the year. Generally, consumer staples such as groceries have been able to stay afloat. Logically, this is because people still need to get their daily necessities. As such, we can see investors appear to be rallying behind the likes of Target (TGT Stock Report) and Costco (COST Stock Report).
Besides, the pandemic has had the effect of moving more consumer spending online. That benefitted e-commerce companies like Amazon (AMZN Stock Report) and Alibaba (BABA Stock Report), which saw higher traffic this year. The rest of the consumer industry may be less fortunate. Yet, amidst hopeful vaccine news from the likes of Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report), the tides appear to be changing. The industry appears to be picking up momentum.
There are reasons to be optimistic about where the industry is heading. These include the upcoming holiday seasons, refined digital business strategies, and greater disposable income in consumers. Adding all this up, we could see stellar performances by some of the top consumer stocks going into 2021. Therefore, more investors may be wondering if it is a good time to jump on to the current consumer stocks train. With that, here is a list of top consumer stocks for you to watch this week.
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Top Consumer Stocks To Watch This Week: Bed Bath & Beyond Inc.
First up, we have Bed Bath & Beyond (BBBY Stock Report). The New Jersey-based retail chain saw its stocks up by 438% since its lows in early April. Although the shares have been on a downward trend since late October, it appeared to be picking up momentum late last week. Investors may be curious as to why this is the case.
Last Friday, news broke that Bed Bath & Beyond would be partnering up with Target subsidiary Shipt. This agreement provides free same-day delivery day promotions for customers. The promotion launches today and will give customers a chance to get ahead of the holiday rush by having their orders shipped to their homes within hours. The retailer is also offering a promotion that includes 20% off purchases on curbside pickup or buy online, pickup in-store orders from December 17 to 24. Understandably, investors see this as an excellent play by the company. After all, it is facilitating the needs of its consumers in a way where they feel safe.
Bed Bath & Beyond’s focus on its digital sales and delivery services is indeed one that investors can see coming. Likewise, the company reported an 89% increase in its digital comp growth year-over-year. With the company’s strong execution on the digital front, would you expect further upside in BBBY stock?
Top Consumer Stocks To Watch This Week: Coca-Cola Co
Following that, we have the classic consumer stock, Coca-Cola (KO Stock Report). Everybody is familiar with the famous red cola brand that has dominated the carbonated beverage market for decades. Despite the global popularity of its signature beverage, the company has had a tough year so far. In fact, for the first nine months of 2020, Coca-Cola reported that revenue was down by 15% year-over-year. Yet, investors appear to be gradually returning to the stock. KO stock is now almost back to its price at the start of the year.
On December 9, the company announced a comprehensive global agency review covering its advertisement subcomponents. Coca-Cola issued the following statement, “We are on a journey to fundamentally transform and dramatically improve the effectiveness and efficiency of our marketing investments. By improving our processes, eliminating duplication, and optimizing spend, we will generate significant savings to fuel reinvestment in our brands. Media and creative agency services require significant investment from our brands. They are also a crucial component of our ongoing digital transformation journey to drive our business.”
The move to improve marketing efficiency shows the company’s discipline during tough times. Perhaps some of the newfound efficiency could stick around even after the pandemic. And that could be beneficial to the company’s margins going forward. Coca-Cola is definitely not resting on its laurels as it continues to make strides towards recovery. It is also not forgetting the importance of investing in future growth. All things considered, do you think KO stock will thrive in 2021?
Top Consumer Stocks To Watch This Week: Walmart Inc
Last but not least, we have Walmart (WMT Stock Report). The hypermarket giant has had a respectable year so far, with the stock price rising over 23% year to date. In November, the company reported a phenomenal set of third-quarter results. Walmart reported a 79% year-over-year rise in e-commerce sales and steady gains in revenue across the board. Investors may be wondering if the company has anything up its sleeve to keep this momentum up.
Last Thursday, chief medical officer Dr. Tom Van Gilder made an interesting announcement. He mentioned that Walmart has been gearing up to administer coronavirus vaccines across the country once the vaccine is approved. The company is preparing over 5000 of its stores to facilitate and administer the first vaccine to receive approval from the U.S. FDA. Gilder said, “With 90% of the American population living within ten miles of a Walmart, we will play an important part in making sure those who want a vaccine can get one when they are eligible based on their state’s prioritization, especially those in hard to reach parts of the country that have recently been hit hard by the epidemic.”
This could bode well for Walmart’s health segment in the long run. The company may take this opportunity to establish itself as a key player in the fight against coronavirus. Moreover, countless Americans will be able to experience Walmart Health services firsthand which makes for strong publicity. Should the plan go on track, the company could be looking at an even more fruitful 2021. What’s more, with the roll-out of a vaccine and the reopening of the economy, Walmart could be looking at increasing sales ahead. With all these in mind, do you have WMT stock on your watchlist?