The Consumer Discretionary Sector encompasses a vast array of industries that primarily revolve around non-essential goods and services. In layman’s terms, this sector thrives on products and services that individuals indulge in when they have excess disposable income. From luxury items, and entertainment providers, to restaurants and travel services, these businesses often see their revenues ebb and flow in tandem with the overall health of the economy. A booming economy where consumers are flush with cash typically spells prosperity for this sector. This comes as consumers are more inclined to spend on luxuries and experiences.
When it comes to consumer discretionary stocks, they offer a unique insight into the prevailing consumer sentiment. As well as the broader health of the economy. Investing in these stocks can be lucrative during economic upswings as consumers tend to splurge, driving up revenues for businesses in this sector. However, they also come with their fair share of volatility. Economic downturns, shifts in consumer preferences, or global events can lead to decreased consumer spending on non-essentials, affecting the performance of these stocks.
Thus, while the sector offers significant growth potential, investors eyeing consumer discretionary stocks should be prepared for the inherent cyclicality and adopt a well-researched and strategic approach to harness the benefits while mitigating the risks. Considering this, here are two consumer discretionary stocks to watch in the stock market today.
Consumer Discretionary Stocks To Watch Right Now
- Nike Inc. (NYSE: NKE)
- Netflix Inc. (NASDAQ: NFLX)
Nike (NKE Stock)
To start, Nike Inc. (NKE) is a globally renowned brand specializing in the design, development, and marketing of footwear, apparel, equipment, and accessories. Rooted in the world of athletics, Nike is a leader in the sports and fashion industry, with its products being synonymous with high performance, innovation, and trendsetting styles.
At the beginning of this month, Nike announced when it will release its financial results for the first quarter of fiscal 2024. In detail, the company is set to report its most recent quarterly results on Thursday, September 28, 2023, shortly after the regular stock market trading hours conclude. After disseminating the financial details, Nike’s management team is scheduled to conduct a conference call at 2:00 p.m. PT to discuss and review the results.
Over the last month of trading action, shares of NKE stock have pulled back by 9.66%. Meanwhile, during Wednesday morning’s trading session, Nike stock is trading at $90.01 a share.
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Netflix (NFLX Stock)
Next, Netflix Inc. (NFLX) is a pioneering streaming entertainment service that offers a vast library of films, television series, documentaries, and original content across various genres and languages. Netflix currently serves millions of subscribers in over 190 countries.
Earlier this month, Netflix announced its plan to release the financial results for the third quarter of 2023 on October 18, 2023, around 1:00 p.m. Pacific Time. These results, along with the company’s business outlook, will be made available on its investor relations website.
In the last month of trading, Netflix stock has retreated by 8.71%. Moreover, during Wednesday morning’s trading session, shares of NFLX stock opened slightly higher by 0.70% at $381.92 per share.
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