Should You Be Long These 2 Top Consumer Stocks?
Consumer stocks have been very interesting to watch in the market. The ongoing pandemic has caused some consumer stocks to dip while others have been on the rise. Many smaller food companies have been forced to close for good due to the losses related to the coronavirus. This makes consumer stocks a very interesting niche for investors to watch.
Food delivery services have seen a big increase in business due to stay at home orders. Some companies offering these services are at a big advantage. People prefer to order food rather than go out in the world during this pandemic. consumer stocks related to delivery have seen their stock price go up or recover.
With this being said, not all consumer stocks are in a good spot. Many food chains have been forced to permanently close locations. Some have gone out of business altogether that were not able to stay afloat during the coronavirus. Let’s take a look at some of the top food consumer stocks to watch that have been interesting in the market lately.
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Top Consumer Stock To Watch: Grubhub Inc.
The first consumer stock to watch on this list is Grubhub Inc. (GRUB Stock Report). Grubhub was founded in 2004 and has grown to be one of the largest food delivery services in the United States since. In 2019 it was reported that it has 19.9 million active users, as well as 115,000 restaurants listed on its app. GRUB stock has seen positive effects recently due to its growth during the ongoing pandemic.
Initially, shares of GRUB stock dropped when the pandemic began, however now GRUB stock has begun to bounce back. Its stock price was around $53 a share before everything happened in the world. Now, this food stock is currently at $55.91 a share as of June 10th, a little higher than before. Even after experiencing a low of $30.13 in March GRUB stock has made a full comeback.
Grubhub is still expanding its business in the future. Recently, Grubhub announced that it will be acquired by Just Eat Takeaway. It was originally rumored to be acquired by Uber but that deal fell through. Grubhub specifically stated it “confirms that it is in advanced discussions with Grubhub regarding an all-share combination of Just Eat Takeaway.com with Grubhub”. Some analysts believe this new deal will help GRUB’s stock price rise even more.
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Top Consumer Stock To Watch: Starbucks
Starbucks Corporation (SBUX Stock Report) is a food stock that has been in a bit of trouble recently. While SBUX stock has seen a rise in its share price during the pandemic, it has recently released some bad news. Currently, 91% of Starbucks locations have been reopened in the United States. The problem is this food stock is expecting to lose 64 to 79 cents in its fiscal third quarter. Starbucks claims it was affected most in markets outside of China in Q3 which is the reason for this loss. Sales were down 21% in May, but sales still increased over in China. Still, the company expects to reduce sales this quarter, possibly as much as $3.2 billion according to the coffee giant.
On June 10th, Starbucks announced that it is closing 400 total stores in North America, half of them being in Canada. This caused shares of SBUX stock to go from an $82 a share to $78.63 a share as of 1:11pm on June 10th. This is why Starbucks is a food stock to watch, due to its potential in the future. The share price of SBUX stock could improve if Starbucks sales go up once again. Starbucks intends on opening 500 new locations in 2020, and opened 57 new stores in China in April and in May.
Consumer stocks are clearly in a volatile state like many other sectors in the market. Even when they drop down, good news can create more action in the market. The future for consumer stocks is looking good as businesses continue to reopen across the world. This makes the above companies two potential winners and consumer stocks to watch of tomorrow.
