5 Hot Consumer Discretionary Stocks For Your Late 2021 Watchlist
With the increased focus on pandemic conditions, investors appear to be rotating out of reopening stocks. After considering this, could the consumer discretionary section of the stock market still be worth investing in now? Well, for one thing, not all consumer discretionary stocks are made equal in the market today. This would be the case as some parts of the industry would see increased demand should pandemic conditions continue to worsen. With all that in mind, the focus of our article today will be stay-at-home consumer discretionary stocks.
To begin, this would encompass digital means of entertainment that are mostly contactless. This includes streaming stocks such as FuboTV (NYSE: FUBO) and video game stocks like Skillz (NYSE: SKLZ) among others. Moreover, companies like Best Buy (NYSE: BBY) would also see increased consumer traffic online. In theory, we could see home improvement trends continue to persist should coronavirus cases continue to rise. Regarding the current state of the world, experts do not appear to be optimistic. Namely, leading epidemiologist Larry Brilliant said over the weekend that the “pandemic is not coming to an end soon”. While this remains to be seen, consumer discretionary businesses would continue to thrive as global demands remain strong. With that said, could one of these consumer discretionary stocks be worth watching in the stock market today?
5 Top Consumer Discretionary Stocks To Watch This Month
- DraftKings Inc. (NASDAQ: DKNG)
- Home Depot Inc. (NYSE: HD)
- ContextLogic Inc. (NASDAQ: WISH)
- Penn National Gaming Inc. (NASDAQ: PENN)
- Costco Wholesale Corporation (NASDAQ: COST)
DraftKings Inc.
DraftKings is a daily fantasy sports contest and sports betting operator. In essence, it is a digital sports entertainment and gaming company that boasts a wide range of products across daily fantasy, digital media, and regulated gaming. The company is a vertically integrated sports betting operator that is based in the U.S. It also has operations in over 7 countries with 15 distinct sports categories. DraftKings is also the official daily fantasy partner of the NFL, MLB, and NASCAR among others. DKNG stock currently trades at $52.84 as of 3:30 p.m. ET.
Today, the company announced that it will acquire Golden Nugget Online Gaming (NASDAQ: GNOG) in an all-stock transaction that has an implied equity value of approximately $1.56 billion. The acquisition will enable DraftKings to utilize Golden Nugget’s iGaming product experience and well-known brand. It will also enhance the company’s ability to instantly reach a broader consumer base, including Golden Nugget’s loyal iGaming-first customers. The company also says that the deal will create meaningful synergies such as increased combined company revenues driven by additional cross-sell opportunities and loyalty integrations. With that being said, will you add DKNG stock to your watchlist?
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Home Depot Inc.
Home Depot is the world’s largest home improvement specialty retailer, with over 2,000 retail stores in all 50 states. In fiscal 2020, the company had sales of $132.1 billion and earnings of $12.9 billion. It also employs approximately 500,000 associates. HD stock currently trades at $328.95 as of 3:31 p.m. ET. The company will be announcing its second-quarter earnings conference call on August 17, 2021.
In light of that, how has the company been doing financially? In May, the company announced stellar first-quarter results. Notably, its total sales for the quarter were $37.5 billion, a 32.7% increase year-over-year. Net earnings for the quarter were $4.1 billion, or $3.86 per diluted earnings. “Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects,” said Craig Menear, chairman, and CEO. Given this piece of news, is HD stock a top consumer discretionary stock to consider watching right now?
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ContextLogic Inc.
ContextLogic or Wish is a consumer discretionary company that brings an entertaining shopping experience to millions of consumers around the world. In fact, it is one of the largest global e-commerce platforms in the world, connecting millions of value-conscious consumers in over 100 countries to over half a million merchants globally. WISH stock currently trades at $10.48 as of 3:31 p.m. ET.
Last month, the company announced that it has been granted a Payment Services License by the Dutch Central Bank. The new license will enable Wish to process transactions and increase control over the payments value chain in a compliant manner, while also reducing reliance on third parties. The granting of this license would be the company’s first step towards becoming a payment services provider in Europe. Lastly, the company will also be announcing its second-quarter 2021 results on August 12, 2021, after the market closes. All things considered, is WISH stock worth adding to your list right now?
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Penn National Gaming Inc.
Another name to consider in the consumer discretionary space now would be Penn National Gaming (PENN). Sure, if you had told me this a few years back, I would not have believed you. However, the company’s successful shift towards the online betting industry has and continues to benefit PENN. By the company’s estimates, it currently boasts the “largest and most diversified” regional gaming portfolio in the U.S. With over 24 million members across its entertainment offerings, could PENN stock be worth keeping an eye on now?
As it stands, PENN stock currently trades at $71.58 as of 3:31 p.m. ET. More importantly, the company’s shares are sitting on gains of over 800% since its pandemic era low. Despite its momentum, PENN does not seem to be slowing down anytime soon. As of last week, the company is planning to acquire “theScore”, a leading digital media and sports betting tech firm. Through the $2 billion deal, PENN is looking to create a best-in-class one-stop destination for online sports betting fans nationwide. Would all of this make PENN stock a top buy for you now?
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Costco Wholesale Corporation
Last but not least, we have Costco. In brief, it is a multinational corporation that operates a chain of big-box retail stores. Through a paid membership, consumers can access Costco’s massive array of offerings. The likes of which range from groceries and clothing to electronics and even furniture. In particular, consumers looking to stock up amidst the current coronavirus fears would be turning to Costco. After all, the company’s wholesale business model would facilitate such shopping trends.
Now, COST stock is trading at $439.98 a share as of 3:32 p.m. ET. Notably, the company’s shares continue to trade towards newer heights. Could this trend continue? If anything, Costco appears to be kicking into high gear on the operational front. In its July sales update, the company reported a 48.9% year-over-year increase in overall e-commerce comparable sales. This would be a notable feat given its massive network of over 800 warehouses worldwide. By and large, would this make COST stock worth investing in for you?
