Are These The Best Consumer Stocks To Have In Your Portfolio Right Now?
With growing concerns regarding the overall state of the economic recovery from the pandemic, consumer stocks could be worth noting. On the whole, this area of the stock market today has been and still is relevant today. After all, key factors influencing markets today would be inflation, economic growth, and the job market. All of which involve consumers to a certain extent. Sure, while the stock market may be seeing turbulence now, the Labor Department’s latest jobs report suggests that the U.S. labor market holds strong. Evidently, April’s non-farm payroll figures are now in at 428,000, well above consensus estimates of 380,000.
Not to mention, some of the top consumer stocks are pressing forward despite less-than-ideal operating conditions. Take Block (NYSE: SQ) for instance. This leading name in the fintech space posted commendable figures in its latest quarterly earnings report. While the company did not top Wall Street estimates, its Square ecosystem continues to thrive. Throughout the quarter, the gross payment volume (GPV) for the platform was $43.5 billion. This adds up to a year-over-year bump of 31.4%. According to CFO Amrita Ahuja, Block also sees its Cash App and Square solutions posting sequential gross profit growth throughout 2022.
Arguably, not all consumer firms are made equal. In other words, some companies are handling the current macroeconomic headwinds better than others. Nonetheless, even as businesses like Under Armour (NYSE: UAA) feel the heat from supply chain pressures and marketplace uncertainties, some investors could see an opportunity. In the case of Under Armour, the company is currently coming off “a multi-year transformation and after delivering a record year in 2021” and is targeting long-term growth. On that note, could one of these three consumer stocks be top picks in the stock market now?
Consumer Stocks To Buy [Or Sell] Today
- Opendoor Technologies Inc. (NASDAQ: OPEN)
- DraftKings Inc. (NASDAQ: DKNG)
- DoorDash Inc. (NYSE: DASH)
Opendoor Technologies Inc.
For starters, we have Opendoor. For the uninitiated, Opendoor, as the name suggests, is a company that operates in the real-estate space. Through its digital marketplace, Opendoor allows consumers to make housing-related transactions. The likes of which range from instant cash offers on homes to property repair orders and relisting solutions. Notably, OPEN stock could be worth checking out in the stock market today thanks to the company’s recent earnings update.
After yesterday’s market close, Opendoor saw green across the board for its first fiscal quarter release. Getting straight to it, the company is boasting earnings of $0.04 alongside revenue of $5.2 billion. For reference, this is versus consensus analyst forecasts of a $0.07 loss per share and revenue of $4.29 billion. Safe to say, these eye-opening beats could potentially put the company’s stock on investors’ radars.
Aside from that, Opendoor is looking at a record quarter overall. This is apparent as the company hit a record-high for quarterly revenue and is seeing year-over-year gains of 590% on this front. Regarding Opendoor’s total home sales count, it is up by 415% over the same period. According to CEO Eric Wu, the company is now focusing on growing its customer base, driving sustainable margin expansion, and operating via a “lowest cost structure.” Through a combination of all these efforts, Wu argues that Opendoor can fuel further growth while protecting its margins. With all this in mind, would you consider OPEN stock a buy?
[Read More] Stock Market Today: Dow Jones, S&P 500 Continues Retreat; Opendoor (OPEN) In Focus After Earnings Beat
DraftKings Inc.
Following that, we have DraftKings, a digital sports entertainment and gaming company that has a wide range of products. This ranges from daily fantasy to regulated gaming, and digital media. The company is a multi-channel provider of sports betting and gaming technologies across 17 countries. It also has an iGaming business in 5 states through its DraftKings brand. The company also reported a strong quarter today.
Diving in, the company posted a revenue of $417 million, a 34% increase compared to a year ago. The company says it delivered significant growth across its key revenue and performance metrics and that it is not seeing any impact from inflationary pressures on customer demand. DraftKings also continues to improve its efficiency by acquiring and retaining customers and it also has a strong pipeline of new jurisdictions to enter. Monthly Unique Payers increased to 2 million customers, an increase of 29% year-over-year.
The company is also now live with mobile sports betting in 17 states, collectively representing approximately 36% of the U.S. population. DraftKings also continued to deepen the content offering for DraftKings Sportsbook, which helps drive customer acquisition, engagement, and retention, by adding micro markets like wagering on the “next field goal” for the NBA and college basketball. All things considered, is DKNG stock a buy right now?
[Read More] Metaverse Stocks To Buy Today? 4 For Your April Watchlist
DoorDash Inc.
DoorDash is a consumer company that operates an online food ordering and delivery platform. In fact, it is one of the largest delivery companies in the U.S. and enjoys a huge market share. It connects hundreds of thousands of merchants to over 25 million consumers in the U.S., Canada, Australia, and Japan through its local logistics platform. Accordingly, its platform allows local businesses to thrive in today’s “convenience economy,” as the company puts it.
On Thursday, the company reported its first-quarter financials for 2022. Firstly, it posted a revenue of $1.5 billion, growing by 35% year-over-year. This was driven by total orders that grew by 23% year-over-year to $404 million. Secondly, it reported a GAAP gross profit of $662 million, an increase of 34% year-over-year. The company says that it has added more consumers than any quarter since Q1 2021, due in part to the growth of its DashPass members. The growth in Monthly Active Users and average order frequency has helped it gain share in the U.S. Food Delivery category this quarter.
“In the two years from Q1 2020 to Q1 2022, we grew orders in our U.S. Restaurant Marketplace by over 250%, grew category share by 14 percentage points, and significantly increased Contribution Profit in the category. Over this time period, we also substantially increased Contribution Profit as a percentage of Marketplace GOV in the category, despite significant ongoing investments in consumer, Dasher, and merchant acquisition. We drove the increase in Contribution Profit as a percentage of Marketplace GOV largely through efficient operations and our laser focus on execution, which contributed to improvements in quality and network efficiency, and operational leverage,” said CEO Tony Xu. Given this piece of information, is DASH stock worth investing in?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!
