Are These The Best Consumer Discretionary Stocks To Invest In Now?
For new investors, the question of “how to know what stocks to buy” is not often one with a clear answer. However, consumer discretionary stocks appear to be heating up on the stock market today. What do these two have in common? Well, to begin with, most new investors would be familiar with consumer discretionary companies and their offerings. Big names such as Nike (NYSE: NKE) or Amazon (NASDAQ: AMZN) would be household names that most people know of today. As such, newer investors could be more inclined to invest in consumer discretionary stocks based on general consumer spending trends which they understand.
At the same time, seasoned investors could also be looking towards this industry as well. Namely, this would be because of the ever-growing list of signs pointing towards broader economic recovery now. Earlier today, it was announced that U.S. weekly jobless claims continue to decline at 498,000 this week. This marks the first time the figure has been below 500,000 since the pandemic started last March. Meanwhile, private employment figures remain on the rise as well.
By and large, all this could lead to consumers having more discretionary funds to spend which bodes well for the industry. Having read this far, you might be interested to invest in some top consumer discretionary stocks yourself. In that case, here are four making headlines on the stock market right now.
Top Consumer Discretionary Stocks To Watch
- AB InBev (NYSE: BUD)
- ViacomCBS Inc. (NASDAQ: VIAC)
- Tapestry Inc. (NYSE: TPR)
- Roku Inc. (NASDAQ: ROKU)
AB InBev SA
AB InBev is a multinational drink and brewing company that is based in Leuven, Belgium. Its portfolio includes approximately 630 beer brands in 150 countries. The company’s brand portfolio includes global brands like Budweiser, Corona, and Stella Artois. BUD stock currently trades at $74.96 as of 12:54 p.m. ET and has been up by 5.27% on today’s opening bell. Investors seem to be responding to news of the brewer picking Michel Doukeris as its next CEO. The company also just reported its first-quarter results today.
In it, total volumes for the quarter are up by 13.3%. The company reports that it is reaching more customers with a diverse portfolio and has enjoyed share gains in core and value segments. Both premium and Beyond Beer revenue grew by double-digits. In detail, its premium beer portfolio grew revenue by 28% in the first quarter.
Beyond Beer in particular is expected to grow to a $58 billion category by 2024. Total revenue for the quarter was also up by 17.2% and its normalized earnings per share are $0.55 for the quarter. All things considered, will you buy BUD stock?
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ViacomCBS Inc.
Viacom is a diversified multinational mass media conglomerate that is headquartered in New York City. In essence, the company delivers premium content to audiences across traditional and emerging platforms worldwide. It operates over 170 networks and reaches approximately 700 million subscribers in over 180 countries. VIAC stock currently trades at $38.08 as of 12:54 p.m. ET and has been up by 140% in the last year. The company reported its first-quarter results today.
Diving in, its global streaming revenue grew by 65% year-over-year, fueled by strong increases in user and product monetization. It also added 6 million global streaming subscribers to reach 36 million total subscribers in the quarter. Total revenue for the quarter was a whopping $7.41 billion, a 14% increase year-over-year. Viacom also reported a diluted earnings per share of $1.42 for the quarter. It ended the quarter with a free cash flow of $1.58 billion. With such strong financials, will you consider buying VIAC stock for the long run?
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Tapestry Inc.
Tapestry is a multinational luxury fashion company. It is based in New York City and is the parent company of major brands like Coach New York and Kate Spade New York. The company’s products are based on great design, quality, and craftsmanship. TPR stock currently trades at $46.08 as of 12:54 p.m. ET and has been up by over 200% in the last year. Earlier today, the company reported its third-quarter financials for fiscal 2021.
In detail, its results were significantly ahead of expectations, with operating income exceeding pre-pandemic levels. Net sales for the quarter was $1.27 billion, a 19% increase year-over-year. It delivered robust sales growth this quarter that was led by its digital segment and China market. Digital sales experienced triple-digit growth compared to a year ago and revenue from China increased by approximately 175% year-over-year. Gross profit for the quarter was $912 million.
Building on this momentum, the company is increasingly optimistic about its ability to generate sustainable growth. It also sees encouraging signs of recovery as vaccination efforts progress. This could ultimately result in increased consumer confidence and strong demand for its categories of products. Given all of this, will you consider buying TPR stock?
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Roku Inc.
When it comes to consumer discretionary spending, video streaming companies continue to prosper. One of the most prominent names in the streaming industry now would be Roku. For the uninitiated, the company produces streaming hardware and also manages its proprietary streaming platform. Roku’s true strength lies in how it generates revenue from the current streaming trends.
In short, the company facilitates content from most mainstream video streaming services. This includes Netflix (NASDAQ: NFLX), Apple TV (NASDAQ: AAPL), and Disney+ (NYSE: DIS). Subsequently, Roku receives a cut of subscription fees paid through its platform while also gaining ad revenue from its free content. All this would strategically position Roku to grow regardless of which streaming company comes out on top. This would make ROKU stock a go-to for investors looking to bet on cord-cutting trends. As it stands, ROKU stock is currently up by over 110% in the past year.
Despite all this, the company continues to expand its streaming portfolio. Just last month, Roku revealed plans to start creating its own streaming content. Essentially, the company will be leveraging its acquisition of mobile-streaming company, Quibi, to create “Roku Originals”. With Roku promising more details on Roku Originals this month, investors could be getting more exciting news today. This could be the case seeing as Roku is set to report earnings after today’s closing bell. Given all of this, will you be adding ROKU stock to your portfolio now?
