4 consumer discretionary stocks to watch in September 2021
As we approach the end of this trading week, the broader stock market appears to be edging higher. While investors may be on the alert after Fed Chairman Jerome Powell’s speech, consumer discretionary stocks remain viable games. Namely, consumer discretionary continues to shine throughout the current earnings season. We can see it in the likes of Dick’s Sporting Goods (NYSE: DKS) and Coty (NYSE: COTY) for example.
On the one hand, Dick’s hit a new all-time high this week as it smashed Wall Street estimates in its second quarter fiscal year. The company posted earnings per share of $ 5.08 on revenue of $ 3.27 billion for the quarter. To put it in perspective, the consensus projections were $ 2.80 billion and $ 2.85 billion, respectively. In addition, the company also increased its quarterly dividend by 21% to $ 5.05 per share. On the flip side, Coty exceeded sales estimates by $ 1 billion in its fourth quarter tax report. The company also provided optimistic indications for its next quarter. Overall, DKS and COTY shares have now risen by over 140% in the past year.
At the same time, the streaming section of the industry continues to heat up. Yesterday, Netflix (NASDAQ: NFLX) announced that it is now testing its mobile gaming services in Poland. For now, Netflix subscribers in the region will have access to two mobile games based on the Strange things series. According to Netflix, the service will be ad-free and will be included with regular subscriptions. Safe to say, there is no shortage of exciting developments among consumer discretionary stocks right now. As such, could any of these companies be the number one choice in the stock market today?
Best consumer discretionary stocks to buy [Or Sell] Today
Amazon is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. In fact, it has one of the biggest online market and cloud computing platforms. It also offers a wide variety of technology services including Amazon Prime Video, Amazon Music, Twitch, and Audible. Its Amazon Web Services provide on-demand cloud computing services and APIs to individuals, businesses and governments.
At the end of July, the company reported an excellent second quarter. Plunging, net sales rose 27% year-on-year to $ 113.1 billion. The company also reported net income of $ 7.8 billion for the quarter or $ 15.12 per share. “Over the past 18 months, our consumer business has been called upon to deliver an unprecedented number of items including PPE, food and other products that have helped communities around the world cope with difficult circumstances. of the pandemic.
At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS’s growth accelerate as more businesses come up with plans to transform. their businesses and move to the cloud, ”said Andy Jassy, CEO of Amazon. With this news, are you planning to buy AMZN shares right now?
Next on this list we have Roku, a consumer discretionary company focused on video streaming. The company was a pioneer in the television streaming industry. Impressively, its streaming devices are used by millions of consumers around the world. The Roku platform also enables content providers and advertisers to reach a massive and highly engaged consumer audience. Its advertising tools are designed for streaming and enable Roku advertising to deliver relevant audiences to brands and agencies.
Last week, the company announced its linear lineup which has expanded to over 200 channels, with a total of 17 brand new channels launching on The Roku Channel. Users will also be able to watch 16 linear channels covering a wide variety of genres.
Earlier this month, the company also announced the creation of 23 Roku Originals. The company is certainly pulling all cylinders and continues to operate as the # 1 TV streaming platform in the US, measured by streaming hours. All things considered, will you be adding ROKU stocks to your list of consumer discretionary stocks?
[Read more] The best stocks to invest in 2021? 3 cyclical stocks to watch
Apple is a consumer discretionary company specializing in online services and consumer electronics. The company revolutionized personal technology with the introduction of the Macintosh in 1984. Today it is a leading technology company with its line of high-end technology products such as the iPhone and Macbooks. It is also one of the most valued companies in the world and one of the largest PC vendors in the world.
On Thursday, the company announced a news partnership program, a new list of initiatives to expand its work with journalism. The News Partner Program aims to ensure that Apple News customers maintain access to reliable news and information from many of the world’s top publishers, while supporting publishers’ financial stability and advancing efforts to strengthen media literacy and diversity in news coverage and newsrooms.
Additionally, the News Partner Program is designed for subscription-based news publications that deliver their content to Apple News in Apple News (ANF) format. With that in mind, will you view AAPL stock as a buy today?
[Read more] The best stocks to buy now? 5 dividend stocks to watch
Another name to consider in the consumer discretionary space now would be Difference. In short, the San Francisco-based company operates primarily as a clothing retailer. It is currently one of the largest US specialty apparel companies in the market, according to Gap estimates. This would be the case given the vast collection of global brands in its portfolio. This includes its Old Navy, Banana Republic, Gap and Athleta clothing divisions. Would it be worth watching after gaining more than 350% from its lowest pandemic level?
Notably, Gap seems to be pulling all cylinders now. For starters, the company yesterday released exceptional figures for its second quarter. In it, Gap reported earnings per share of $ 0.70, crushing consensus estimates of $ 0.46. On top of that, the company saw extended strength in its flagship brands throughout the quarter.
According to CEO Sonia Syngal, these factors allow Gap to increase its sales and profit outlook for the next quarter. Not to mention that Gap is also acquiring Drapr, an e-commerce company that develops and maintains a virtual locker room app. Ideally, this would further strengthen Gap’s digital services. Would all of this make GPS stock a top buy for you right now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.