5 Trending Consumer Discretionary Stocks To Watch Amid Rising Job Numbers
Consumer discretionary stocks could be in focus in the stock market today for several key reasons. Firstly, the June jobs report is in today and the reopening trade could continue to gain. This would be the case as the U.S. economy reportedly added back 850,000 non-farm payrolls throughout June. Notably, the current figures are well above the 720,000 expected by economists. With more consumers getting access to more stable means of income, consumer discretionary spending increases could be worth looking out for. Secondly, star investor Michael Burry from “The Big Short” recently took a shot at the meme stocks trade. Burry believes that Reddit-favored meme stocks are set to crash in the short term. Should this be the case, I could see investors turning towards consumer discretionary stocks. After all, they often have less social media hype but cater to the same consumer markets nonetheless.
If anything, there are numerous consumer discretionary names to choose from across the board now. Whether it is pandemic winners like Roku (NASDAQ: ROKU) or reopening plays such as Tripadvisor (NASDAQ: TRIP), options are plentiful. On one hand, the shift from cable television to streaming would benefit streaming giants like Roku. On the other hand, increased demand for travel services post-pandemic would fuel investor interest in the likes of Tripadvisor. Now, both company’s shares are looking at gains of over 100% in the past year. With all this activity in the consumer discretionary space, you might be keen to invest in some top names yourself. In that case, here are five consumer discretionary stocks to know in the stock market now.
Top Consumer Discretionary Stocks To Watch
- Amazon.com Inc. (NASDAQ: AMZN)
- Apple Inc. (NASDAQ: AAPL)
- Carnival Corporation (NYSE: CCL)
- Ford Inc. (NYSE: F)
- Walt Disney Company (NYSE: DIS)
Amazon is a multinational tech company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the largest e-commerce platforms in the world, with over $108.5 billion in net sales in its first quarter. Aside from its e-commerce business, the company is also one of the largest live-streaming and cloud computing platforms. AMZN stock currently trades at $3510.98
On June 28, 2021, the company was named Swisscom’s preferred public cloud provider to accelerate its digital transformation strategy and move towards a cloud-native 5G network. Swisscom is Switzerland’s leading telecoms company. In detail, Swisscom will be pursuing a cloud-first strategy and will use AWS to accelerate IT agility, drive operational efficiencies, and accelerate time to market. All things considered, will you buy AMZN stock?
Apple is a consumer discretionary company that specializes in consumer electronics, software, and online services. It is one of the world’s largest technology companies by revenue and also one of the most valuable. The company has a very strong brand loyalty for its premium tech products like the iPhone and Macbook. In a news report by Nikkei Asia, Apple will be one of the first adopters of Taiwan Semiconductor Manufacturing Co’s next-generation chip production technology ahead of its deployment next year. The company is currently testing its test designs with TSMC’s 3-nm production technology.
In late April, the company also announced record financial results for its second quarter. Firstly, it posted a March quarter record revenue of $89.6 billion, up by 54% year-over-year. Secondly, the company also reported quarterly earnings per diluted share of $1.40. Luca Maestri, Apple’s CFO had this to say, “These results allowed us to generate operating cash flow of $24 billion and return nearly $23 billion to shareholders during the quarter. We are confident in our future and continue to make significant investments to support our long-term plans and enrich our customers’ lives.” Given the impressive quarter, will you consider buying AAPL stock?
Carnival is a leading cruise and leisure travel company. Its portfolio of global cruise line brands includes Costa Cruises and AIDA Cruises. It is, in fact, the world’s largest cruise company with a fleet of over 80 ships with the capacity to visit over 700 ports around the world. The company also plans to include a total of 16 new ships that are scheduled to be delivered to Carnival’s brands through 2025. CCL stock currently trades at $26.06 a share.
Recently, two of Carnival’s ships will be restarting cruises this weekend. Namely, they are Carnival Vista and Carnival Horizon. This would be a good sign for the company and industry in general as vaccination rollout continues to take place all over the world. In the company’s second-quarter financials in June, it provided a business update signaling an aggressive plan to return to full operations by next spring. Carnival says that it has announced 42 ships so far, representing over half of its capacity that has been scheduled to return to serving guests by this fiscal year-end. With this in mind, should you consider buying CCL stock?
Ford Motor Company
Ford is a multinational automaker that is headquartered in Detroit. In essence, the company sells automobile and commercial vehicles under its Ford brand and most luxury cars in the Lincoln brand. It also has joint ventures in China, Thailand, and Russia among others. The company unveiled its Ford+ plan in May to transition to zero-emission electric vehicles (EV). It expects 40% of all its global vehicle volume to be all-electric by 2030. F stock currently trades at $14.93 as of Friday’s closing bell.
Earlier today, the company released its June sales figures. Admittedly, Ford’s overall sales came in below analysts’ expectations. However, this includes both its conventional combustion engine vehicle and its EV sales. Regarding its EV division, Ford continues to see massive momentum now. To highlight, the company revealed that it’s June EV vehicle sales are up by 117% year-over-year. Ideally, these encouraging figures could support Ford’s plans to electrify its entire portfolio by 2030. Given all of this, would you consider F stock worth owning now?
Walt Disney Company
Topping off our list today is the Walt Disney Company. Now, few companies can boast a consumer-focused portfolio as legendary as Disney’s. When it comes to mass media entertainment, Disney is arguably an industry titan. From its timeless fairy tale classics to its modern-day star-studded IPs, Disney caters to consumers of all ages. More importantly, the company knows how to make the most of its massive media library in today’s market. Evidently, Disney continues to bolster operations in both its tourism and video streaming divisions now.
For starters, Disney revealed that it will be bringing back its early entry park tickets for resort guests starting October. This would line up nicely with the park’s 50th-anniversary celebration. It seems that Disney is more than keen to open its doors to eager tourists now. At the same time, the company’s Disney+ boasts an impressive line-up of new releases this month as well. Namely, viewers will be treated to more content from Disney’s ongoing Marvel and Star Wars-related series. On top of that, the next Marvel blockbuster movie, Black Widow will also be premiering on the platform. Overall, Disney is making plays on both stay-at-home and reopening trends in the consumer market today. Would this make DIS stock a top buy for you now?