Are These Top Consumer Stocks Worth Buying This Month?
Consumer stocks have garnered attention this week. Given how President Joe Biden’s $1.9 trillion coronavirus relief bill was signed last Thursday, millions of Americans are now receiving their $1,400 stimulus checks. The bill also extends a $300 per week unemployment insurance supplement and expands the checks to dependents. Also, families will get $3,000 to $3,600 extra cash per child this year. Biden says that this historic legislation will help rebuild the backbone of this country. This could ultimately fuel consumer stocks to grow.
Throughout the pandemic, we have seen how consumer stocks were a mixed bag. Some consumer companies like Target Corporation (NYSE: TGT) have soared as they adapted to the pandemic. Another instance of a successful consumer stock is Sony Corp (NYSE: SNE) that has been up by over 90% in the last year. Given how the sector is very broad, there are plenty of top consumer stocks that could enjoy further growth. If you put the sector’s growth potential and federal stimulus together, you could have the right ingredients to help propel the economy to pre-pandemic levels and beyond. Given all of this, will you consider adding these top consumer stocks into your portfolio?
Best Consumer Stocks To Buy [Or Sell] Now
- Nike Inc. (NYSE: NKE)
- Dollar General Corporation (NYSE: DG)
- Build-A-Bear Workshop Inc. (NYSE: BBW)
- RumbleOn Inc. (NASDAQ: RMBL)
Nike Inc.
Nike is a multinational corporation that develops and sells apparel, footwear, and equipment. Furthermore, the company is headquartered in Oregon and is a world leader in designing products for a wide variety of sports and fitness activities. Impressively, it has over 75,000 employees worldwide and is one of the most valuable brands among sports businesses. It has a huge portfolio of brands that include the Nike brand, Hurley, and Converse. Nike will announce its third-quarter fiscal 2021 financial results tomorrow. NKE stock currently trades at $146.08 as of 10:36 a.m. ET.
How has the company been doing financially? In its previous quarter financials that were reported in December, it posted a revenue of $11.2 billion, up by 9% year-over-year. Also, the company saw growth across all geographies, led by Greater China that reported a revenue growth of 24%. It’s NIKE direct sales were $4.3 billion, up by 32% on a reported basis. Nike also saw its digital sales increase by 84%, with triple-digit growth in North America and strong double-digit sales in the Asia Pacific and the Middle East. With that in mind, will you consider buying NKE stock ahead of its earnings?
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Dollar General Corporation
Dollar General or DG, in short, is a chain of variety stores headquartered in Tennessee and has over 17,000 stores in the U.S. It has become one of the most profitable stores in the rural U.S. in recent years. It offers a selection of merchandise, including consumables, home products, and apparel. DG also has a plethora of consumables for its customers. Because of its low-priced goods and given the circumstances that came with the pandemic, DG has been one of the consumer companies that have enjoyed substantial growth. Ahead of its fourth-quarter financials tomorrow, DG currently trades at $190.04 as of 11:27 a.m. ET.
In the company’s third-quarter financials in December, DG reported that its net sales increased by 17.3% for the quarter. It also reported a diluted earnings per share of $2.31, a 62.7% increase year-over-year. DG also doubled its cash flow from operations to $3.4 billion for the quarter. It has also made great progress to advance its key strategic initiative, which includes the rollout of DG Pickup across nearly its entire store base. All things considered, will you buy DG stock?
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Build-A-Bear Workshop Inc.
Build-A-Bear Workshop or BBW is a retailer of teddy bears and other stuffed animals and characters. In detail, it allows its customers to make their own stuffed animal interactive retail-entertainment experience. The company’s segments include direct-to-consumer (DTC), international franchising, and commercial. BBW stock has been up by over 13% on today’s opening bell and currently trades at $8.31 as of 11:20 a.m. ET.
Last week, the company announced its fourth-quarter results and beat analyst expectations. The company reported a 20.8% increase in pre-tax income for the quarter. Its total revenue of the quarter was $93.7 million. BBW, like many other retailers, saw a boom in its e-commerce demand, which increased by over 104% year-over-year. The company also ended the year with $34.8 million in cash. Given all of this, will you consider BBW as a top consumer stock to buy this month?
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RumbleOn Inc.
RumbleOn is an e-commerce platform that helps aggregate and distributes pre-owned vehicles to and from consumers and dealers. The company is disrupting the pre-owned vehicle supply chain by providing dealers with technology solutions such as a virtual inventory and a 24/7 distribution platform. Ultimately, it allows consumers to have an efficient and timely transaction experience without leaving home. RMBL stock has been up by over 70% in the past 5 trading sessions and currently trades at $56.81 as of 11:26 a.m. ET. Investors seem to be responding to the company’s fourth-quarter results on Monday.
In it, the company reported that its gross profit per vehicle sold increased by 100% year-over-year. The company also reported a total revenue of $416.4 million for the year and a huge chunk of that revenue came from its automotive segment. RumbleOn’s decision to focus on profitability in 2020 despite being impacted by the coronavirus has resulted in significantly reduced commercial activity.
Despite these factors, the company’s full-year results demonstrate improvements in margin and EBITDA. “Less than seven months after launching RumbleOn 3.0 it’s clear the newest generation of RumbleOn has been a great success,” said Marshall Chesrown, Chief Executive Officer. “RumbleOn 3.0 has increased overall listings on RumbleOn.com which has led to an improvement in gross profit on vehicles sold of more than 100% in 2020 as compared to 2019.” With this said, will you consider buying RMBL stock?
