The consumer discretionary sector is a diverse industry that includes companies involved in the production of non-essential goods and services. Such as retail, apparel, leisure, and entertainment. The demand for these goods and services tends to be highly sensitive to changes in economic conditions and consumer sentiment. As a result, making the sector a bellwether for the broader economy. In times of economic growth, consumer discretionary stocks can perform well as consumers have more disposable income to spend on non-essential goods and services. However, during times of economic downturn or uncertainty, consumer discretionary stocks can underperform as consumers cut back on discretionary spending.
Some of the largest companies in the consumer discretionary sector include multinational corporations such as Nike (NYSE: NKE), and McDonald’s (NYSE: MCD) to name a few. As well as smaller companies specializing in niche markets such as luxury goods or home furnishings. Investors often look to the consumer discretionary sector as a way to gain exposure to consumer spending trends and broader economic indicators.
However, it’s important to note that not all consumer discretionary stocks are created equal, and companies within the sector can have vastly different business models and revenue streams. As such, investors should conduct thorough research and analysis before making investment decisions in the consumer discretionary sector. With that being said, let’s dive into two trending consumer discretionary stocks to watch in the stock market today.
Consumer Discretionary Stocks To Watch Now
- Live Nation Entertainment Inc. (NYSE: LYV)
- Amazon.com, Inc. (NASDAQ: AMZN)
Live Nation Entertainment (LYV Stock)
To start, Live Nation Entertainment (LYV) is a live entertainment company that produces and promotes concerts, festivals, and other live events. The company also operates ticketing and artist management services, making it a key player in the music and entertainment industry.
Back in February, Live Nation announced its 4th quarter 2022 financial results. In the quarter, the company reported a loss of $1.09 per share, with revenue in the quarter of $4.3 billion. This was versus analysts’ consensus estimates that were a loss of $0.96 per share and revenue estimates of $3.4 billion. Moreover, Live Nation also notched in a 57.6% increase in revenue versus the same period, the prior year.
Looking that the past month of trading activity, shares of LYV stock have increased by 4.88%. In addition, on Wednesday, Live Nation stock is trading flat on the day so far, trading at $70.24 a share.
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Amazon.com, Inc. (AMZN Stock)
Next, Amazon (AMZN) is an e-commerce giant that operates one of the world’s largest online marketplaces. The company offers a wide variety of products and services, including consumer electronics, clothing, and groceries, as well as cloud computing and streaming media services.
Earlier this month, Amazon released its third annual Brand Protection Report. The report showcases the company’s efforts to protect customers, brands, and selling partners from counterfeit products. The report highlights that Amazon’s strategic combination of industry-leading technology and experts are successfully stopping bad actors, resulting in more criminal referrals and industry partnerships than ever before. In 2022, Amazon identified, seized, and appropriately disposed of over six million counterfeit products, preventing them from reaching customers and being resold elsewhere in the global supply chain.
Continuing on, over the past month of trading, Amazon stock has jumped by 6.97%. Meanwhile, during Wednesday’s mid-morning trading session, shares of AMZN stock are trading lower on the day so far by 1.08% at $98.84 a share.
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