4 Consumer Discretionary Stocks Worth Checking Out Right Now
Amidst the current mix of economic data, investors may want to consider consumer discretionary stocks in the stock market today. Overall, stocks remain on the uptrend thanks to a mostly strong earnings season so far. To point out, a possible reason for this would be the current strength in consumers. Whether it is saved up stimulus funds or rising wages, consumers appear to have more discretionary dollars on hand. Sure, industry giants such as Amazon (NASDAQ: AMZN) are seeing decelerating revenues this quarter. However, this is arguably due to the ongoing global supply chain issues. The likes of which, in theory, could see demands pushed to the holiday season which companies are actively preparing for on the logistics and supply fronts.
Despite all of this, investors continue to watch consumer discretionary markets closely, nonetheless. Evidently, upcoming electric vehicle (EV) manufacturer Lucid Group (NASDAQ: LCID) seems to be in focus in the stock market now. After confirming the first customer deliveries of its flagship sedan, LCID stock surged by over 30% during intraday trading yesterday. Year-to-date, the company’s shares are up by over 250%. Elsewhere, reopening names like American Airlines (NASDAQ: AAL) are not sitting idly by as well. As of this week, it is now working with Affirm (NASDAQ: AFRM) to bring buy-now-pay-later solutions to flyers. By and large, the case seems to be building for consumer discretionary stocks heading into the year-end season. With that said, could one of these companies be worth investing in now?
Best Consumer Discretionary Stocks To Watch Ahead Of November 2021
- Overstock.com Inc. (NASDAQ: OSTK)
- Lululemon Athletica Inc. (NASDAQ: LULU)
- Skechers USA Inc. (NYSE: SKX)
- Royal Caribbean Cruises Ltd. (NYSE: RCL)
Overstock.com Inc.
First up, we have Overstock.com, an internet retailer selling primarily furniture. It sells a broad range of new home products at low prices. This would include furniture, décor, area rugs, and home improvement items. Impressively, its online shopping site is visited by tens of millions of customers a month and also features a marketplace providing customers access to millions of products. OSTK stock currently trades at $95.10 as of 1:51 p.m. ET and is up by over 90% year-to-date. On Thursday, the company reported its third-quarter financials.
Diving in, total net revenue for the quarter was $689 million, while gross profit was $157 million. Furthermore, the company also ended the quarter with cash and cash equivalents of totaled $512 million.
“As we lapped our highest sales growth quarter since 2004, Overstock delivered another quarter of strong financial results. The Overstock business model – with its asset-light structure and broadly distributed supply chain – is particularly well suited for the current high-demand and low-supply market driven by significant industry-wide supply chain disruptions. We have been able to navigate the current global supply chain challenges well,” said Overstock CEO Jonathan Johnson. With that being said, is OSTK stock worth watching right now?
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Lululemon Athletica Inc.
Lululemon Athletica is a multinational athletic apparel retailer with headquarters in Vancouver, Canada. It describes itself as a healthy lifestyle inspired athletic apparel company for yoga, running, training and most other sweaty pursuits. The company has over 480 stores internationally and a strong e-commerce presence. LULU stock currently trades at $463.13 as of 1:51 p.m. ET and has enjoyed gains of over 36% in the past year alone. Recently, the company’s CEO Calvin McDonald explained why it bought fitness company Mirror.
Mirror will compete with the likes of Peloton (NASDAQ: PTON) that sells hardware and offers live and recorded exercise classes. He says that Mirror will be uniquely positioned as a hybrid fitness company that allows people to attend sessions at-studio or on at-home devices. Earlier in the month, the company also announced that this fast-growing interactive home gym will be offered in nearly 40 Lululemon stores across Canada. It will be available for purchase in-store and online beginning on November 22. Given this piece of news, is LULU stock worth considering right now?
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Skechers USA Inc.
Following that, we have Skechers, a footwear company that is one of the largest athletic footwear brands in the country. With nearly 3 decades of experience, the company develops comfort technologies for millions of people all over the world. It has products in over 170 countries and has significant opportunities for continued expansion worldwide. SKX stock $45.83 as of 1:52 p.m. ET and is up by over 30% in the last one year.
On October 28, 2021, the company also reported its third-quarter financials. Firstly, total sales were $1.55 billion, an increase of 19.2% year-over-year. This is a remarkable achievement given the on-going supply chain disruptions. The company says that this record quarter is a result of double-digit improvements in both its domestic and international businesses. Secondly, it reported a diluted earnings per share of $0.66 for the quarter, increasing by 61% compared to a year earlier. For these reasons, should you add SKX stock to your portfolio?
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Royal Caribbean Cruises Ltd.
Another name to consider among consumer discretionary stocks now is Royal Caribbean Cruises or RCL for short. In brief, RCL is a leading player in the global cruise industry today. For a sense of scale, its fleet consists of 60 ships that travel to over 800 destinations globally. It currently owns and operates the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands. Now, due to the persistent Delta variant of the coronavirus, the company’s shares have mostly been trading sideways. As it stands, RCL stock trades at $83.66 as of 1:52 p.m. ET. Given its current price point, some could be seeing an opportunity in the stock now.
In detail, the company reported its third-quarter financials earlier today. For starters, the company’s quarterly revenue came in at $457 million, below consensus estimates. At face value, this would seem like a potential turn-off for short-term investors. Nevertheless, for those more interested in long-term growth potential, RCL stock could be worth keeping an eye on.
This is mainly thanks to the current pent-up demand for its services even amidst the current pandemic conditions. In fact, RCL’s 2022 bookings exceed pre-pandemic levels and pricing remains strong, according to the company. To sum it up, CFO Jason Liberty said, “As cases have come down, demand has come surging back. Consumers are showing their resilience and desire to vacation.” After considering all of this, will you be adding RCL stock to your watchlist?
