Do You Have These Top Consumer Discretionary Stocks In Your June Watchlist?
With the economy reopening and the current surge in consumer spending, consumer discretionary stocks could be worth watching now. Among the consumer-related stocks in the stock market today, this segment stands to benefit the most from summer spending tailwinds. After all, most consumers spent their summer staying at home hiding away from the pandemic last year. If anything, this would contribute to the pent-up demand for travel we are seeing now. In April, the Bureau of Labor Statistics (BLS) found that prices for travel-based activities continue to rise. According to the BLS, this includes secondhand and rental car fees, airline fees, and lodging away from home. Because of this, investors could be eyeing top travel companies such as Tripadvisor (NASDAQ: TRIP) and American Airlines (NASDAQ: AAL).
Aside from travel, other consumer markets continue to expand as well. Take Ford (NYSE: F) for instance. The company recently launched its F-150 Lightning electric pickup truck, providing more electric vehicle (EV) options for consumers. Another recent example would be the supposed rise in the hard seltzer industry now. Based on data from the U.S. Distilled Spirits Council, premixed cocktail sales grew by 50% in the U.S. in 2020. According to Bank of America Securities (NYSE: BAC), this category could rake in a staggering $4 billion in revenue in the foreseeable future. In particular, beverage companies like Diageo (NYSE: DEO) would also be in focus because of this.
All in all, consumers seem to have more options to spend their discretionary funds than ever. With that in mind, here are five of the top consumer discretionary stocks to watch in the stock market this week.
Consumer Discretionary Stocks To Watch
- Apple Inc. (NASDAQ: AAPL)
- Tesla Inc. (NASDAQ: TSLA)
- American Eagle Outfitters Inc. (NYSE: AEO)
- Canopy Growth Corporation (NASDAQ: CGC)
- Sea Limited (NYSE: SE)
Apple Inc.
Starting us off is the leading name in the consumer handheld electronics industry, Apple. From its flagship line of iPhones to its growing tablet and personal computer offerings, the company brings a lot to the table. On the software front, Apple develops and manages its own operating systems and related services. These include its cloud storage, video streaming platform, and mobile gaming store, to name a few. In terms of scale, the company reported a total revenue of over $89 billion in its recent quarter fiscal back in April. With AAPL stock down by 3.7% year-to-date, could now be the time to invest in it?
According to Forbes, Apple appears to be hard at work on getting its iPhone 13 to the market. Firstly, production for the iPhone 13 is reportedly ahead of schedule by several months. Moreover, the company is also looking to add a larger camera module on the back of the phone. This would synergize well with its existing top-of-the-line camera software. Coupling all this with the current weakness in AAPL stock, would you consider adding it to your watchlist?
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Tesla Inc.
Next up, we will be looking at Tesla, the largest EV company in the world now. Aside from EVs, the company is also a prominent player in the clean energy home grid industry. For one thing, Tesla’s core offerings could gain momentum over time as global green initiatives kick into high gear. In its latest quarter fiscal, the company produced over 180,000 EVs and delivered 185,000. Citing strong demand for its Model Y EV in China, Tesla saw its total quarterly revenue surge by 73% year-over-year. As it stands, TSLA stock is currently up by over 230% in the past year.
While most would focus on Tesla’s EV division, the company continues to grow its energy storage business as well. To begin with, Tesla reported an 83% increase in its solar energy battery deployments in 2020. Namely, the company’s Megapack utility energy storage system is to thank for this. With the transition towards green energy looming over the horizon, I could see Tesla’s clean energy offerings being in demand. For a sense of scale, Grand View Research estimates that the grid-scale battery storage market could be worth $15 billion by 2027. With TSLA stock being involved in that, would you consider keeping an eye on it now?
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American Eagle Outfitters
Another top consumer discretionary company to watch now would be American Eagle Outfitters (AEO). In short, the Pennsylvania-based company is a global specialty retailer with a focus on American lifestyle, clothing, and accessories. In fact, AEO operates physical stores in the U.S., Canada, Mexico, and Hong Kong. Through its e-commerce division, the company’s merchandise is available at over 200 international locations and ships to 81 countries worldwide. Now, AEO stock is currently looking at gains of over 240% in the past year.
As with most retailers, AEO appears to be firing on all cylinders now as shoppers return to the mall in droves. In its first-quarter fiscal report last week, the company reported solid figures across the board. Specifically, AEO posted a total revenue of $1.03 billion for the quarter, marking a significant 87% increase year-over-year. Would all this make AEO stock a top stock to watch now?
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Canopy Growth Corporation
Following that, we have the Canopy Growth Corporation (CGC). For the uninitiated, CGC is a world-leading diversified cannabis and cannabinoid (CBD) based consumer product company. Indeed, as the recreational weed market continues to expand at a steady rate this year, CGC stock would be in focus. For the most part, this is thanks to CGC’s massive portfolio of marijuana-based products. Aside from conventional cannabis, the company is also in the health and wellness consumer market.
On the operational front, CGC continues to bolster its already impressive portfolio. Particularly, the company signed Southern Glazer’s Wine & Spirits as a distributor for its CBD-infused beverages. This move would play well with the recent launch of CGC’s Quatreau-brand CBD beverage line. According to CGC, Southern Glazer’s established distribution network will, notably, help bring Quatreau to consumers across the U.S. market. Having read all that, will you be watching CGC stock ahead of the company’s earnings call tomorrow?
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Sea Limited
Last but not least, we have Singaporean internet company, Sea Limited. For some context, the company primarily operates through its e-commerce, gaming, and fintech arms. In particular, these are its Shopee, Garena, and Sea Money services, respectively. Seeing as all of these businesses revolve around consumers, SE stock would be a viable consumer discretionary play right now. Besides, Sea Limited’s current hold on the fast-growing Southeast Asian market is rather significant. Because of all this, SE stock has already more than tripled in value over the past year. Could it have more room to grow moving forward?
We could take a closer look at its recent quarter fiscal to get a clearer picture of this. In detail, Sea Limited saw massive year-over-year surges of 146% in total revenue and 121% in cash on hand. The company cites massive growth across the board from its main business divisions for this solid performance. Time will tell if Sea Limited can keep up its current momentum. Regardless, would you consider SE stock a top consumer discretionary stock to buy now?
