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High Client Items Shares To Purchase Proper Now? four Issues to Know

June
3, 2021

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This story originally appeared on StockMarket

Are these the best consumer goods stocks to buy right now?

Among the various sectors of the stock market, consumer discretionary stocks appear to be gaining momentum as investors anticipate booming economic growth for the remainder of the year. At the rate of vaccines being administered in the US, this would result in a quick reopening of the country's economy. And that bodes well for top consumer staples stocks. This sector includes companies that sell goods and services that are not considered essential. Biggest names in the industry include Home Depot Inc (NYSE: HD), Nike Inc (NYSE: NKE), and even Apple Inc (NASDAQ: AAPL). As some of you would expect, companies in this sector tend to be more volatile as they rise and fall with general economic trends.

With COVID-19 appearing to be easing in the US, it is natural that some sectors previously hit by the pandemic should see a strong recovery in demand for their products and services. Eventually, people are spending more time outdoors again as tens of millions of people in the US get vaccinated against the insidious virus. And that makes a lot of top consumer discretionary stocks potentially worth buying, which opens up huge opportunities for many investors. If you believe in the economic recovery narrative, do you have this list of the top consumer discretionary stocks to buy on the stock market today?

Top Consumer Discretionary Stocks To Watch For

Pinduoduo Inc

Pinduoduo is a Chinese operator of e-commerce platforms. The mobile e-commerce platform offers inexpensive goods and interactive shopping opportunities. PDD stock has been pretty impressive last year. The price has more than doubled during this time.

Source: TD Ameritrade TOS

Last week the company announced its earnings report for the first quarter. Revenue increased 239% year over year to $ 3.4 billion. Of that, Online Marketing Services and others contributed $ 2.15 billion, an increase of 157%. There was also a 31% increase in active buyers to 823.8 million. Given that China's new three-child policy has come into play, these numbers could improve over time.

Since going public in 2018, the company has slowly emerged as the legitimate challenger to Alibaba Group (NYSE: BABA) and JD.com Inc (NASDAQ: JD) in the Chinese e-commerce space. Many attribute this to Pinduoduo's relentless growth and the increasing popularity of its business model. However, the PDD share has retreated by more than 30% from its high in February. So could this be a perfect opportunity to boost PDD stocks?

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McDonald & # 39; s Corporation

Next up, we have one of the leading fast food restaurants in the world, McDonald & # 39; s. Who doesn't know McDonald's? It serves a locally relevant food and drink menu in more than 39,000 restaurants in over 119 markets worldwide. After its sell-off in March 2020, MCD shares are on an upward trend. Over the past year, the stock is up nearly 25%.

Consumer Discretionary Stocks (MCD Stock)Source: TD Ameritrade TOS

In April the company released its earnings report for the first quarter. Global comparable sales increased 7.5% and consolidated sales increased 9%. In addition, net income increased 35%, including the $ 135 million related to the sale of McDonald & # 39; s Japan stock. Without these, the net operating income would have increased by 27%. As we can see, as of March 2020, the company began capitalizing on the significant impact of COVID-19 on its global results.

In addition, McDonald’s announced that it will increase the allocation of advertising money to media companies, production houses and content creators in variously owned areas over the next four years. This would help empower individual businesses while building deeper relationships with McDonald's diverse customer base. With that in mind, would you consider buying MCD stock?

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Starbucks Corporation

Starbucks Corporation operates worldwide as a roaster, marketer and retailer of specialty coffees. The shops offer coffee and tea beverages, roasted whole beans and ground coffees, single-portion and instant beverages, and a variety of food products. Starbucks operates more than 32,000 stores worldwide, a number that has doubled in the past decade. Fortunately for investors, the company's stock also follows the same price. In fact, the price of SBUX shares has almost doubled over the past year.

Top consumer goods stocks to buy (SBUX stock)Source: TD Ameritrade TOS

In April, the company released its results for the second quarter of 2021. The company appears to be recovering from the effects of the pandemic. In particular, globally comparable store sales increased 15% in the quarter, mainly due to a 19% increase in average sales per customer. To top it off, GAAP earnings per share were $ 0.56, doubling year over year. This shows impressive momentum in his business of recovering sales and demonstrates his ability to adapt to the changes caused by the pandemic.

These are exciting times for the company as it focuses on international store growth. With plans to reduce the number of stores in the United States, the company plans to open 95% of its new stores internationally in fiscal 2021. This would likely improve its operating margins as the cost of running branch operations is lower in the international segment. All in all, is SBUX stock a top cyclical consumer staple to buy?

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Tenneco Inc

To summarize the list, we have Tenneco Inc. The company is one of the world's leading designers, manufacturers, and marketers of automotive products for original equipment and aftermarket customers. Through its four business units Motorparts, Performance Solutions, Clean Air and Powertrain, Tenneco is driving progress in global mobility by providing technology solutions for the diversified global market.

Consumer stocks (TEN stocks)Source: TD Ameritrade TOS

Last week, one of Tenneco's companies, Tenhlins Racing, was selected as the exclusive shock absorber supplier for the NASCAR® Cup Series “Next Gen” automotive platform due to launch in 2022. All NASCAR Cup Series teams will receive a sophisticated, five-way adjustable version of the popular Ӧhlins TTR coilover kit. This further shows that the company's strong racing heritage has found the recognition it deserves.

The company published its financial results for the first quarter back in May. Total revenue increased 23% year over year to $ 4.7 billion. Value-add sales increased to $ 3.6 billion, 13% more than in the prior-year quarter. Meanwhile, net income was $ 65 million, compared to a net loss of $ 839 million last year. So it is safe to say that the company is moving in the right direction. So could this be the right time to invest in TEN stocks?

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