Consumer stocks are a type of equity that represents ownership in a company that produces goods and services for consumers. Generally, consumer stocks fall into one of three categories: discretionary, staples, and cyclical. In addition, consumer stocks can be found in a variety of industries, including food and beverage, retail, and healthcare. For example, top companies like Walgreens Boots Alliance (NASDAQ: WBA) and General Mills Inc. (NYSE: GIS) can be categorized as consumer companies.
Many investors view consumer stocks as a safe and reliable investment, as consumer demand is typically less volatile than other economic indicators. Also, consumer stocks also tend to perform well during periods of inflation, as rising prices often lead to increased spending on goods and services.
However, consumer stocks can also be susceptible to economic downturns, as consumers may cut back on spending during tough economic times. When considering an investment in consumer stocks, it is important to carefully consider the risks and potential rewards of each individual stock before making a purchase. With this in mind, check out these three trending consumer stocks to watch in the stock market now.
Consumer Stocks To Watch Now
- Walmart Inc. (NYSE: WMT)
- Nike Inc. (NYSE: NKE)
- Starbucks Corporation (NASDAQ: SBUX)
1. Walmart (WMT Stock)
Kicking off this list today, Walmart Inc. (WMT) is an American multinational retail corporation. The company operates a chain of supercenters, hypermarkets, warehouse clubs, supermarkets, and more. For a sense of scale, every week, nearly 230 million customers visit more than 10,500 retail stores throughout 24 countries worldwide. With the fiscal year 2022 revenue of $573 billion, Walmart employs approximately 2.3 million associates worldwide. Today, Walmart shareholders receive an annual dividend yield of 1.69%.
WMT Recent Stock News
Moving along, In August Walmart announced its second-quarter 2022 financial and operating results. Diving in, the company reported Q2 2022 earnings of $1.77 per share along with revenue of $152.9 billion. This is versus, analysts’ consensus estimates for the second quarter of 2022, which was earnings of $1.60 per share and revenue of $150.5 billion.
Additionally, Walmart reported that its U.S. comp sales and e-commerce growth advanced by 6.5%, and 12% respectively. Furthermore, the company said it estimates third-quarter 2022 earnings in the range of $1.29 to $1.32 per share, and revenue estimates of $147.55 billion.
Doug McMillon, President & CEO at Walmart said this about the quarter, “We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year.”
WMT Stock Chart
As of Friday morning’s trading session, shares of Walmart stock are trading down modestly 0.79% at $131.16 per share.
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2. Nike (NKE Stock)
Next up, we have Nike Inc. (NKE). Nike is an American multinational corporation. The company is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. In addition, Nike is the largest athletic footwear and apparel brand in the world.
NKE Recent Stock News
After the market closed on Thursday, Nike reported its fiscal 2023 first-quarter financial results. In the report, Nike reported first-quarter 2023 earnings of $0.93 per share with revenue of $12.7 billion. For context, Wall Street’s consensus earnings estimate was $0.91 per share and revenue of $12.3 billion for Q1 2023. Additionally, Nike reported a revenue increase of 3.6% during the same period, a year prior.
However, on the company’s conference call they said it now estimates fiscal 2023 revenue of approximately $47.18 billion to $49.75 billion. This forecast is lower than what the company reported previously of full-year 2023 revenue of approximately $51.38 billion.
John Donahoe, President, and CEO, of Nike, commented this about Q3 2022 performance, “Our competitive advantages, including the strength of our brand, deep consumer connections and pipeline of innovative product, continue to prove that our strategy is working. We expect our unrelenting focus on better serving the consumer to continue to fuel growth and create value like only NIKE can.“
NKE Stock Chart
Continuing on, during Friday’s mid-morning trading action Nike stock is down over 10% at $85.20 per share.
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3. Starbucks (SBUX Stock)
Topping off the list, Starbucks Corporation (SBUX) is an American coffee company and coffeehouse chain. In fact, the company is the largest coffeehouse company in the world. For a sense of scale, the company operates approximately 34,000 stores across more than 80 countries worldwide. Today, SBUX stock has an annual dividend yield of 2.26%.
SBUX Recent Stock News
This week, Starbucks announced that its Board of Directors has approved an increase in the company’s quarterly cash dividend. Specifically, the company raised its quarterly cash dividend from $0.49 to $0.53 per share. As a result, this raises Starbucks’ annual dividend rate to $2.12 per share. Meanwhile, since Starbucks started offering dividends in 2010, it has increased its dividends in each of the last 12 years.
Aside from that, last month the company reported better-than-expected third-quarter 2022 financial results. In detail, Starbucks reported earnings for Q3 2022 of $0.84 per share with revenue of $8.2 billion. Additionally, the company posted a revenue increase of 8.7% during the same period, a year prior.
Moreover, Starbucks’ CFO Rachel Ruggeri said this about the quarter, “We delivered record-breaking revenue performance during the quarter from continued strength in customer demand globally, balanced with our ability to execute investments despite macroeconomic and operational headwinds. Our commitment to deliver shareholder value has not wavered, and we are making the right decisions and investments today for the future of Starbucks.”
SBUX Stock Chart
Over the last 5 trading days, shares of Starbuck stocks have recovered over 2% as of Friday morning’s trading session at $86.40 a share.
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