Should Investors Have These 5 Top Consumer Discretionary Stocks In Their Portfolios?

As investors navigate the stock market now, consumer discretionary stocks could be on their radars. In fact, it would not surprise me to see that they are the most active stocks today. Why? Simply put, the economy continues to recover from the devastating effects of the coronavirus pandemic.

We can see this from the Department of Labor’s latest weekly unemployment figures. The number of initial jobless claims fell to 473,000, better than the expected 490,000. Moreover, the ninth batch of $1,400 stimulus checks has just gone out to Americans. This adds up to total payments of about $388 billion thus far. In theory, all this would leave consumers with more discretionary funds right now. By extension, I could see this helping consumer discretionary stocks maintain their current momentum moving forward.

For the most part, some of the top consumer discretionary companies are not resting on their laurels now. Earlier today, Amazon (NASDAQ: AMZN) revealed plans to hire 75,000 workers across its e-commerce division. Specifically, the tech giant is looking to increase manpower in its warehouse and delivery network in the U.S. and Canada. At the same time, fellow retailer Walmart (NYSE: WMT) is planning to acquire virtual fitting room company, Zeekit. This would be in line with the company’s plan to expand into the apparel market. All in all, it seems like these consumer discretionary giants are gearing up for busy times ahead. In that case, should investors be watching these top consumer discretionary stocks in the stock market today?

Consumer Discretionary Stocks To Watch

Airbnb Inc.

Airbnb is an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities. The company is based in San Francisco, California and its platform is accessible via website and mobile app. It does not own listed properties but instead receives a commission from each booking made through the platform. ABNB stock currently trades at $132.51 as of 2:00 p.m. ET. The company will be reporting its first-quarter financials for 2021 after the market closes today.

top consumer discretionary stocks (ABNB stock)
Source: TD Ameritrade TOS

In its fourth-quarter financials that were posted in February, the company had over 46 million nights and experiences booked. Its gross booking value was $5.9 billion for the quarter. Total revenue for the quarter was $859 million. These figures are impressive given how the pandemic had severely affected Airbnb’s business. This could be due to its asset-light business model that proved to be resilient and inherently adaptable.

The company says that its business has started to recover faster than anyone had expected. With millions of guests booking stays closer to home, domestic travel quickly rebounded on Airbnb worldwide. Given all of this, will you consider buying ABNB stock?

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Canada Goose Holdings Inc.

Canada Goose is a lifestyle brand and a leading manufacturer of performance luxury apparel. The company markets a wide range of apparel, both wholesale and direct-to-customers with their retail stores. Every collection is informed by the rugged demands of the Arctic, ensuring a legacy of functionality that is embedded in all its products. GOOS stock currently trades at $38.71 as of 2:00 p.m. ET and has been up by over 85% in the last year. The company has just reported its fourth-quarter financials today.

best consumer discretionary stocks (GOOS stock)
Source: TD Ameritrade TOS

First off, the company posted a total revenue of $172.1 million for the quarter. Net income for the quarter was $2.9 million or $0.03 per diluted share. Impressively, its total revenue was much higher compared to pre-pandemic levels. Its global e-commerce revenue increased by 123.2%, driven by high double-digit and low triple-digit growth rates in all major existing markets. All things considered, will you add GOOS stock to your portfolio?

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BJs Wholesale Club Holdings Inc.

BJ’s is a membership-only warehouse club chain based in Massachusetts. It operates on the East Coast of the U.S. in addition to Ohio and Michigan. Overall, the company has 221 clubs and 151 BJ’s Gas locations in 17 states. BJ stock currently trades at $45.84 as of 2:13 p.m. ET and has been up by over 7% during Thursday’s trading session. This is likely due to JPMorgan upgrading BJ stock today.

top consumer discretionary stocks to watch (BJ stock)
Source: TD Ameritrade TOS

The company was upgraded to ‘outperform’ from ‘neutral’ by JPMorgan, which said that it is more optimistic about BJ’s upcoming earnings report. The firm also said it sees stimulus checks giving a boost to membership renewal rates. Analyst Christopher Horvers says that the wholesaler’s membership program is undervalued as well and was set for a strong year. With that in mind, will you want to consider BJ stock as a top consumer discretionary stock to buy?

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Penn National Gaming Inc.

Penn National is an operator of casinos and racetracks. It operates 41 facilities in the U.S. and Canada, many of them under the Hollywood Casino brand. It also offers live sports betting at its properties in Colorado and Mississippi. In essence, the Company’s strategy has continued to evolve from an owner and manager of gaming and racing properties into an omnichannel provider of retail and online gaming, live racing, and sports betting entertainment. PENN stock currently trades at $75.41 as of 2:12 p.m. ET.

consumer discretionary stocks to buy now (PENN stock)
Source: TD Ameritrade TOS

Earlier in the month, the company reported record first-quarter financials. Penn National reported revenue of $1.27 billion. It also posted a net income of $90.9 million. In addition to that, the company also fully integrated its mychoice player loyalty program across all its retail and digital offerings. This would help bolster Penn National’s ecosystem and further expand its competitive advantage.

The company was also included in the S&P 500 in March, which underscores investor confidence in its position as one of the largest regional gaming operators in the U.S. For these reasons, would you consider PENN stock worth investing in?

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Home Depot Inc.

Topping off our list is Home Depot. For the uninitiated, it is one of, if not, the largest home improvement retailer in the U.S. now. The company mainly supplies consumers with tools, construction products, and related services. In terms of scale, the company operates out of over 2,200 retail stores across the U.S. and Canada. More importantly, investors could be eyeing HD stock ahead of Home Depot’s upcoming earnings release next Tuesday. Could this mean that it has more room to grow this year?

top consumer discretionary stocks to buy (HD stock)
Source: TD Ameritrade TOS

Notably, Wells Fargo (NYSE: WFC) analyst Zachary Fadem seems to believe so. Earlier this week, Fadem hit HD stock with an overweight rating, raising his price target from $330 to $360. In particular, the analyst cites “a new housing cycle” as a long-term growth catalyst for the stock. Understandably, new homeowners would likely turn to Home Depot for their home improvement needs in that case. Could this make HD stock a buy right now?

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