Here Are 5 Top Consumer Stocks To Check Out Today
Consumer stocks could be regaining interest in the stock market as the country celebrates Black Friday today. After all, it is the day that marks the start of the Christmas shopping season and traditionally the busiest shopping day of the year in the U.S. So, it would not be surprising that investors are looking for the best consumer stocks that would give the best returns. While consumers continue to visit brick and mortar stores, e-commerce has been rising in popularity. The pandemic with its lockdowns and quarantines has escalated the growth of e-commerce.
According to the National Retail Federation report, there’s been a shift toward online shopping over the years, with 44% more consumers shopping online in 2020 compared to 2019. Revenues for e-commerce giants such as Shopify (NYSE: SHOP) and eBay (NASDAQ: EBAY) reflect this shift. On one hand, Shopify’s third-quarter revenues soared to $1.12 billion, representing an increase of 46% year-over-year. On another hand, eBay reported a better-than-expected third-quarter report. With its revenues at $2.5 billion, up 11% compared to the prior year’s quarter. All things considered, it is plausible that consumer stocks are on the radars of many investors today. So, would a list of the top consumer stocks in the stock market today be of your interest? Here are 5 to watch today.
Top Consumer Stocks to Watch In The Stock Market Today
- Amazon.com, Inc. (NASDAQ: AMZN)
- Walmart Inc. (NYSE: WMT)
- FedEx Corporation (NYSE: FDX)
- Crocs, Inc. (NASDAQ: CROX)
- Etsy, Inc. (NASDAQ: ETSY)
Amazon.com
First, we have the e-commerce giant that needs no introduction, Amazon. What started as an e-commerce company has now grown into a multinational technology company focusing on e-commerce, cloud computing, and digital streaming. In the e-commerce industry, Amazon stands out from its peers by having its delivery arm, Amazon Logistics. Also, the company is currently acquiring Hollywood media company Metro-Goldwyn-Mayer Studios (MGM), in a deal that should close sometime in 2022.
Last month, the company reported its third-quarter earnings. For starters, its revenue increased to $110.8 billion, up 15.3% year-over-year. Meanwhile, its AWS cloud computing platform saw almost 40% growth year-over-year, raking in $16.1 billion in sales. On top of that, JP Morgan analyst Doug Anmuth believes that Amazon is “well-positioned going into the holidays” and should surpass Walmart as the largest U.S. retailer next year. Given these considerations, could AMZN stock still be a top consumer stock to watch?
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Walmart
Another top consumer company to note right now would be Walmart. The company’s retail stores were among those thronged by shoppers in the early days of the pandemic, as many rushed to stock up on toilet paper rolls and hand sanitizers. Earlier this month, the company announced that it is acquiring “select technology assets” from Botmock. The start-up offers a set of tools for designing, prototyping, testing, and deploying conversational applications across platforms. Walmart plans to use this technology to enhance its conversational commerce services.
In its latest quarter, Walmart recorded $140.53 billion in revenue for its latest quarter, up by 4% year-over-year. Its US e-commerce sales rose by 8% for the quarter. Walmart is positive that the company could sustain its momentum with economies reopening worldwide and people having more choices on where to spend their money. With that in mind, would you be watching WMT stock?
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FedEx
Every Christmas season, parcel delivery companies such as FedEx are brought into the spotlight as people look to send gifts to friends and family. Apart from its delivery-related arm such as FedEx Express and its supply chain arm called FedEx Logistics, it also operates FedEx Office, which offers office services such as printing and copying at its locations. As a delivery company, FedEx plays an important role in combating the coronavirus. It is one of the few companies that transport vaccines around the world. As a testament to its efficiency, FedEx Express was named Asia’s Best Third-party Logistics for Vaccines at the Asia Pacific Vaccine Excellence Awards 2021.
Suffice to say, FedEx’s earnings are one to watch. The company recorded $22 billion in revenue for its latest fiscal quarter, up by 14% year-over-year. The latest quarter also saw FedEx Ground opening a fully automated, state-of-the-art hub in Chino, California, that can process 30,000 packages per hour. The hub is strategically located to help address ongoing port congestion challenges. Well, the company looks to be well-positioned for long-term growth as the demand for its services continues to rise. So, would you consider adding FDX stock to your watchlist?
Crocs, Inc
Following that, we will be looking at Crocs. This is a company that specializes in the sale and design of casual lifestyle footwear and accessories. The footwear company produces shoes using an innovative foam resin called Croslite. Its shoes have a distinctive design, resembling clogs traditionally worn in the Netherlands. While Crocs shoes are known for casual wear, the company has partnered with high fashion brands such as Spanish luxury fashion house Balenciaga for more polished designs.
We can see the company’s resilience through its recently announced third-quarter earnings. Crocs posted $625.9 million in revenue, up 73% year-over-year. Out of which, Digital sales climbed 68.9% during the quarter, accounting for 36.8% of total sales. Crocs plans to strengthen its digital sales component in line with its plans to achieve $5 billion in sales by 2026. Furthermore, the company launched an app this year that leverages virtual reality (VR) to offer a new dimension to online shopping. With that said, would CROX stock be worth watching right now?
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Etsy
Another e-commerce company making the list is Etsy, which owns an online marketplace focused on handmade and vintage items. Its primary marketplace, Etsy.com, is the global destination for creative goods. For sellers, the Company offers a range of tools and services that address key business needs. Well, the shortage of medical masks at the start of the pandemic was a boom for Etsy as many then sought homemade masks. Last year, sellers on Etsy were able to deliver over $740 million worth of masks.
While the mask shortage may be over, Etsy continues to build on its momentum. The company recorded $532.4 million in revenue for the third fiscal quarter, up by about 18% year-over-year. The company said that it added about 7 million new buyers to the website during the last quarter. CEO Josh Silverman said that the company’s excellent third-quarter results showed that users who found Etsy during the pandemic continued to use the website regularly. Keeping this in mind, would you be buying ETSY stock in the stock market today?
