Are These The Best Consumer Discretionary Stocks To Watch Today?

Consumer discretionary stocks are in focus as we enter another jam-packed week of earnings and economic data. Namely, numerous top names in this section of the stock market today will be reporting their latest financials this week. This is apparent as the likes of Disney (NYSE: DIS), Uber (NYSE: UBER), and Lyft (NASDAQ: LYFT) are among them. At the same time, investors will also likely be closely watching January’s Consumer Price Index reading due this Thursday. Arguably, consumer discretionary stocks could be a prominent theme in the stock market in the week ahead.

For one thing, even home-workout tech firm Peloton Interactive (NASDAQ: PTON) is making waves now. Ahead of its second fiscal quarter report, PTON stock is surging by over 23% during Monday morning’s trading session. This would be thanks to reports and analyst notes regarding major tech names being keen on acquiring the firm. Supposedly these are Amazon (NASDAQ: AMZN), Nike (NYSE: NKE), and Apple (NASDAQ: AAPL). Potential acquisition news aside, Peloton also provided upbeat figures in the form of preliminary results for the second quarter. All of which could serve to further highlight PTON stock among its consumer discretionary peers now.

Meanwhile, Bumble (NASDAQ: BMBL) is making its first-ever acquisition. As of earlier today, the dating app operator is acquiring Fruitz, a French dating app. According to Bumble, Fruitz’s total user base is currently experiencing “rapid growth” across several global markets. These consist of France, Belgium, Netherlands, Switzerland, Spain, and Canada. All in all, these are but two notable pieces of consumer discretionary stocks-related news today. With all this activity in the industry now, should you be watching these firms?

Consumer Discretionary Stocks To Buy [Or Sell] Today

Spirit Airlines Inc.

First up, we have Spirit Airlines, a consumer discretionary company that operates an ultra-low fare airline. In fact, the company is a leader in providing customizable travel options that start with an unbundled fare. Also, its Fit Fleet is one of the most fuel-efficient in the U.S. The company also serves destinations throughout the U.S., Latin America, and the Caribbean. SAVE stock is up by over 10% on today’s opening bell.

On February 7, 2022, the company announced a definitive merger agreement with Frontier Group Holdings (NASDAQ: ULCC), to create one of America’s most competitive ultra-low fare airlines. Together, the companies will bring change to the industry for the benefit of consumers, bringing more ultra-low fares to more travelers in destinations across the Americas. The stronger financial profile of both companies will empower them to accelerate investment in innovation and compete more aggressively. The company also says that this would include going against the dominant ‘Big Four’ airlines.

Also, Spirit says that the combined airline will deliver $1 billion in annual consumer savings and also offer over 1,000 daily flights to over 145 destinations in 19 countries across complementary networks. It will also expand to more than 350 aircraft in order to deliver more ultra-low fares. “We are thrilled to join forces with Frontier to further democratize air travel,” said Ted Christie, President, and CEO of Spirit. “This transaction is centered around creating an aggressive ultra-low fare competitor to serve our Guests even better, expand career opportunities for our Team Members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public.” With that in mind, is SAVE stock worth investing in?

spirit airlines stock (SAVE stock)
Source: TD Ameritrade TOS

[Read More] Stock Market Today: Dow Jones, S&P 500 Rises; Peloton Skyrockets On Possible Takeover

Energizer Holdings Inc.

Next, we have Energizer Holdings, one of the world’s largest manufacturers of primary batteries and portable lighting products. It is also a leading designer and marketer of automotive fragrance and appearance products. Its brands include Energizer and Eveready. The company has six operational facilities in the U.S. and one in Singapore for the markets in Asia and Oceania. Today, the company reported its first-quarter financials for fiscal 2022.

Diving in, it reported net sales of $846.3 million for the quarter on strong demand and pricing actions. The company also says that it enjoyed increased distribution and improved fill rates. Also, Energizer reported an earnings per share of $0.83 and adjusted earnings per share of $1.03 for the quarter. Furthermore, it reaffirmed its fiscal year outlook for net sales and adjusted earnings per share. Despite the volatile operating environment, the company’s improved inventory planning and supply chain durability has enabled it to deliver one of its most important quarters yet.

In late January, the company also announced that its Board of Directors have declared a dividend of $0.30 per share. The dividend will be payable on March 16, 2022, to shareholders of record at the close of business on February 22, 2022. It also completed its previously announced $75 million accelerated share repurchase program in the first quarter of fiscal 2022. All things considered, will you add ENR stock to your portfolio?

ENR stock chart
Source: TD Ameritrade TOS

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Hasbro Inc.

Another notable area of the consumer discretionary spending business would be entertainment. When it comes to that, Hasbro would be a company to consider now. To highlight, the global play and entertainment firm is a titan in the toy industry today. Overall, Hasbro caters to millions of consumers worldwide via a massive portfolio of entertainment IPs. This includes but is not limited to Magic: The Gathering, Dungeons & Dragons, My Little Pony, Transformers, Play-Doh, and Monopoly.

More importantly, HAS stock will likely be gaining attention in the stock market today thanks to its latest announcement. That is, the company crushed analyst estimates in its latest quarterly earnings call. Chiefly, Hasbro posted an earnings per share of $1.21, handily beating consensus forecasts of $0.88. On top of that, the company’s net revenues are in at a total of $2.01 billion, marking a 17% year-over-year increase. In particular, Hasbro is currently sitting on a 54% year-over-year rise in revenue from its entertainment segment.

Commenting on the company’s current performance is interim CEO Rich Stoddart. In detail, Stoddart highlights that Hasbro achieved another record revenue year for its Wizards of the Coast division. He also notes that growing brand interactions from fans and consumers continue to fuel the company’s business momentum. Not to mention, Hasbro is also raising its quarterly dividend to $0.70 per share, marking a 3% increase. With the company seemingly firing on all cylinders now, will you be keeping an eye on HAS stock?

HAS Stock chart
Source: TD Ameritrade TOS

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