Are These The Best Consumer Stocks To Buy In July?
As investors keep an eye out for the top stocks to buy today, consumer stocks could be worth checking out. For one thing, the Fourth of July weekend is fast approaching and consumers looking to let loose would be spending. Although inflation has made backyard barbeques more expensive, market research firm Numerator has reported that about 60% of Americans still plan to grill this weekend to keep up with traditions. With such a good weekend coming ahead, it would make sense that investors are looking at consumer stocks today.
Speaking about food, Simply Good Foods (NASDAQ: SMPL) has just reported its fiscal third-quarter 2022 financial results. Diving in, net sales were $316.5 million, an increase of $32.5 million year-over-year thanks to the solid retail takeaway in the quarter. The company also reported its net income of $38.8 million, compared to $5.9 million during the same period. Following these upbeat figures, the company is also providing a positive full fiscal year 2022 outlook. Namely, according to Simply Good Foods’ press release, it anticipates a net sales year-over-year increase of between 14% to 15%.
Another company investors may be considering ahead of the holiday weekend is PepsiCo (NASDAQ: PEP). Recently, the company has opened an $8.5 million facility nearly 70 miles from Atlanta. In brief, the facility will assist in the distribution of over 6 million cases of beverages to 28 counties in Georgia. These expansions were made after Pepsi brought in $4.3 billion in net income in the first quarter. Knowing all of this, here are three more consumer stocks to look out for in the stock market now.
Consumer Stocks To Watch Today
Constellation Brands Inc.
Starting us off today, we have Constellation Brands, a consumer company that produces spirits, beer, and wine. In fact, it is one of the largest beer import companies in the U.S. and has operations all over the globe. Its portfolio of brands includes Corona Extra and Pacifico. With over 70 years of experience in distilleries, the company continues to embrace innovation and bold ideas to serve its customers.
Today, the company reported its first-quarter financials for fiscal 2023. Diving in, net sales for the quarter were $2.36 billion, an increase of 17% year-over-year. It also posted an operating income of $816 million. On top of that, Constellation also reported an earnings per share of $2.06. Its beer business achieved double-digit net sales and operating income growth with strong depletion growth as well. This was driven by a solid performance from its Corona Extra and Modelo Especial brands.
Furthermore, Constellation updated its fiscal 2023 outlook for its earnings per share to be in a range of $10.50 to $10.80. The company also affirms its fiscal 2023 operating cash flow target of $2.6 billion to $2.8 billion. It also returned $1.3 billion to shareholders in share repurchases through June 2022. This would include a previously announced $500 million accelerated share repurchase. All things considered, is STZ stock worth investing in right now?
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Nio Inc.
Another consumer-focused firm to consider in the stock market today is Nio. This notable Chinese electric vehicle (EV) manufacturer has and continues to grow its operations globally. This would be apparent from the ongoing construction of its EV battery swapping network in Europe. Pair that with its latest ES7 SUV launch from earlier this month, and most would say that the firm remains as busy as ever.
On the whole, while all this could give investors reason to consider NIO stock, the company’s latest press release is garnering attention. In detail, the company’s shares continue to experience volatility as it replies to a recent report from short-seller, Grizzly Research. The likes of which posted a report accusing Nio of inflating its revenue figures via a venture. Accordingly, Nio was quick to reply with a statement declaring that the report is “without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations.”
As a result of all this, the company’s shares continue to experience a deceleration in the stock market now. Despite the negative press, Morgan Stanley (NYSE: MS) analyst Tim Hsiao appears to be bullish on NIO stock. The analyst is issuing a tactical idea call on the Chinese EV firm. What this means is that Morgan Stanley believes that the share price will see gains in the next 15 days. According to Hsiao, there are several key reasons for the update. In particular, he cites Nio’s upbeat June sales, current volume trajectory for 2H 2022, and “strong product pipeline.” With all this in mind, would you consider NIO stock a top consumer stock to buy now?
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McDonald’s Corp
Last but not least, we have the fast-food giant McDonald’s. In essence, the company has three core segments, its U.S., International Operated Markets (IOM), and International Developmental Licensed Markets & Corporate (IDL) arms. These divisions separate its operations by regions, whereby the U.S. segment focuses on domestic markets, and the IOM segment focuses on Australia, Canada, France, and more. Meanwhile, the IDL segment focuses on Latin America and Asia.
Last week, McDonald’s expanded its mobile app partnership with financial technology platform Adyen (OTCMKTS: ADYEY) to the U.S. In brief, Adyen offers convenience and streamlines the customer experience. It accomplishes this by allowing customers to pay using their saved payment method at McDonald’s using a four-digit code. Early in 2020, the two companies started collaborating in the UK, and they are now expanding to other international markets.
Moreover, McDonald’s has been upgraded by Atlantic Equities analyst Edward Lewis. The upgrade is from a Neutral rating to an Overweight rating. Furthermore, Lewis has raised the company’s price target from $245 to $278. This upgrade was made as Lewis has noted that the “quick-service restaurant proves resilient during periods of economic weakness.” With the restoration of the U.S. store base virtually complete, the priority for CAPEX will be to open additional units in the IOM segment. Considering all of this, is MCD stock on your watchlist?
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