Check Out These Top 3 Consumer Discretionary Stocks Now
Consumer discretionary stocks are a type of stock that represents businesses that sell non-essential goods and services. These include items like clothing, entertainment, and automobiles. Consumer discretionary stocks are those that tend to be more volatile in the stock market and sensitive to changes in the overall economy. For example, during an economic recession, consumers may reduce their spending on discretionary items. As a result, consumer discretionary stock prices could fall. However, during an economic expansion, consumer discretionary stocks may outperform the market as consumers have more disposable income to spend on these items. For investors looking for growth potential, consumer discretionary stocks can be an attractive option.
Examples of consumer discretionary actions include names such as Nike Inc. (NYSE: NKE), Walt Disney Company (NYSE: DIS), and Roblox Company (NYSE: RBLX) to name a few. Given the current state of the economy, I wouldn’t be surprised if investors kept a close eye on leading consumer discretionary stocks. With that, here are three consumer discretionary stocks to watch in the stock market today.
Consumer Discretionary Stocks to Watch Today
Comcast (CMCSA stock)
First, Comcast Corporation (CMCSA) is a global media and technology company with two main businesses: Comcast Cable and NBCUniversal. Comcast Cable is one of the largest pay-TV providers in the United States, and it also provides high-speed Internet and telephone services to residential and business customers. NBCUniversal operates cable news, entertainment and sports networks; produces movies and TV shows; and operates theme parks.
Just last month, the company announced a beat for its second-quarter 2022 financial results. In the report, CMCSA posted earnings per share of $1.01 for the second quarter. With this, the company recorded a turnover of 30.0 billion dollars. Wall Street consensus estimates were earnings per share of $0.91, with revenue of $29.7 billion. Growth this quarter was primarily driven by NBCUniversal and theme parks. Since the release of those results, CMCSA shares have fallen 12%, closing Wednesday’s trading day at $37.11 per share.
Brian L. Roberts, Chairman and CEO of Comcast, said:Our financial results in the second quarter were very strong across the board, with Cable, NBCUniversal and Sky each delivering strong adjusted EBITDA growth, which translated into double-digit increases in adjusted earnings per share and healthy generation of free cash flow. Significantly, we have accomplished this while continuing to invest in the future growth of our businesses, increasing our return of capital to our shareholders and maintaining our balance sheet in good condition.“Given all of this, is now the time to buy CMCSA stock?
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Communications Charter (CHTR Action)
Next, Charter Communications, Inc. (CHTR) is an American telecommunications and mass media company that offers its services to consumers and businesses under the Charter Spectrum brand. It’s the second-largest cable company in the United States behind Comcast, and it’s also the nation’s largest residential broadband Internet service provider.
In addition, at the end of July, CHTR announced better than expected second quarter 2022 financial results. Plunging, Charter Communications reported earnings of $8.80 per share for the second quarter. Along with this, the company recorded a revenue of $13.6 billion. For context, analyst consensus estimates for the quarter were earnings of $6.92 per share, on revenue of $13.4 billion. Year-to-date, shares of CHTR have fallen more than 33%, closing Wednesday’s trading session at $429.18 per share. However, investors might see this as a potential buying opportunity at these price levels.
CHTR CEO Tom Rutledge said in his letter to shareholders:Our growth has always been driven by providing value-rich packages at affordable prices for customers. Looking forward, we remain well positioned to grow our business using this same strategy. Our fixed and mobile broadband services continue to converge and we offer a single connectivity package while significantly reducing customer bills. So we have a great opportunity to save customers money, which in turn increases connections, reduces churn, and drives overall customer relationship growth.“With that, is CHTR one of the top consumer discretionary stocks to keep on your radar today?
Activision Blizzard (ATVI Stock)
Finally, Activision Blizzard, Inc. (ATVI) is an American video game holding company based in Santa Monica, California. The company has become one of the largest third-party video game publishers in the world. Notably, Activision’s portfolio includes some of the most popular video game franchises in the world. These include names such as “Call of Duty”, “World of Warcraft”, “Diablo”, and “Overwatch”. Earlier this month, Activision Blizzard released its second quarter 2022 financial results.
In the report, ATVI announced earnings per share of $0.38, with revenue of $1.6 billion. This was relatively consistent with consensus estimates. Specifically, it was earnings per share of $0.39 per share on revenue of $1.6 billion. Additionally, on January 18, 2022, the company announced that Microsoft (NASDAQ: MSFT) plans to acquire Activision Blizzard. In detail, Microsoft will acquire ATVI for $95.00 per share in an all-cash transaction.
Bobby Kotick, CEO of Activision Blizzard, commented: “Our acquisitions in the last quarter of Proletariat and Peltarion further strengthen our development resources, including our artificial intelligence and machine learning capabilities. Even in a tough economic environment, with so many companies announcing hiring freezes and layoffs, our development headcount was up 25% year-over-year at the end of the second quarter. Our talented teams plan to release exciting new content across Call of Duty, World of Warcraft and Overwatch later this year. Of course, we look forward to closing our pending $95 per share cash transaction with Microsoft as soon as possible.“Year-to-date, ATVI shares are up more than 17%. Meanwhile, ATVI stock ended Wednesday’s trading day at $79.28 per share. Will you be adding ATVI stocks to your watchlist today?
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