Consumer stocks are a type of equity that represents ownership of a business that produces goods and services for consumers. Generally, consumer stocks fall into one of three categories: discretionary, core, and cyclical. Additionally, consumer stocks can be found in a variety of industries, including food and beverage, retail, and healthcare. For example, large companies like Walgreens Boot Alliance (NASDAQ: WBA) and General Mills Inc. (NYSE: GIS) can be categorized as consumer businesses.
Many investors view consumer stocks as a safe and reliable investment because consumer demand is generally less volatile than other economic indicators. Additionally, consumer stocks also tend to perform well during periods of inflation, as rising prices often lead to increased spending on goods and services.
However, consumer stocks can also be sensitive to economic downturns, as consumers may cut spending during tough economic times. When considering investing in consumer stocks, it is important to carefully consider the potential risks and rewards of each individual stock before making a purchase. With that in mind, check out these three trending consumer stocks to watch on the stock market right now.
Consumer stocks to watch now
1. Walmart (WMT stock)
Kicking off this list today, Walmart Inc. (WMT) is an American multinational retail company. The Company operates a chain of supercenters, hypermarkets, warehouse clubs, supermarkets, etc. For an idea of scale, every week nearly 230 million customers visit more than 10,500 retail stores in 24 countries around the world. With revenue of $573 billion in fiscal 2022, Walmart employs approximately 2.3 million associates worldwide. Today, Walmart shareholders receive an annual dividend yield of 1.69%.
Recent WMT Stock News
In August, Walmart announced its second-quarter 2022 financial and operating results. Plunging, the company reported Q2 2022 earnings of $1.77 per share along with revenue of $152.9 billion. of dollars. This is compared to analyst consensus estimates for the second quarter of 2022, which were earnings of $1.60 per share and revenue of $150.5 billion.
Additionally, Walmart reported that its U.S. mockup sales and e-commerce growth grew 6.5% and 12%, respectively. Additionally, the company said it estimates third-quarter 2022 earnings between $1.29 and $1.32 per share, and revenue estimates of $147.55 billion.
Doug McMillon, president and CEO of Walmart, had this to say about the quarter: “We’re excited to see more customers choosing Walmart during this time of inflation, and we’re working hard to support them as they prioritize their spending. The actions we have taken to improve inventory levels in the U.S., as well as a broader grocery sales mix, put pressure on the second quarter profit margin and our outlook for the year. .”
WMT Stock Chart
In Friday morning’s trading session, Walmart shares are trading down a modest 0.79% to $131.16 per share.
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2. Nike (NKE action)
then, we have Nike Inc.. (NKE). Nike is an American multinational. The Company is engaged in the design, development, manufacture, marketing and worldwide sale of footwear, apparel, equipment, accessories and services. Additionally, Nike is the largest sports footwear and apparel brand in the world.
NKE Recent Stock Market News
After the market closed on Thursday, Nike released its financial results for the first quarter of fiscal 2023. In the report, Nike announced earnings of $0.93 per share in the first quarter of 2023 with revenue of 12 .7 billion. For context, the consensus estimate for earnings from Wall Street was $0.91 per share and revenue of $12.3 billion for the first quarter of 2023. Additionally, Nike reported an increase in revenue of 3, 6% over the same period a year earlier.
However, on the company’s conference call, they said it now estimates revenue for fiscal year 2023 to be around $47.18 billion to $49.75 billion. This forecast is lower than what the company had previously announced for revenue of approximately $51.38 billion for the year 2023.
John Donahoe, President and CEO of Nike, commented on the third quarter 2022 performance:Our competitive advantages, including the strength of our brand, our deep connections to consumers and our pipeline of innovative products, continue to prove that our strategy works. We expect our relentless focus on better serving the consumer to continue to fuel growth and create value as only NIKE can.“
NKE Stock Chart
Continuing, during Friday’s mid-morning trading action, Nike stock was down more than 10% at $85.20 per share.
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3. Starbucks (SBUX stock)
At the top of the list, Starbucks Corporation (SBUX) is an American coffee company and coffeehouse chain. In fact, the company is the largest cafe company in the world. For an idea of scale, the company operates approximately 34,000 stores in over 80 countries around the world. Today, SBUX stock has an annual dividend yield of 2.26%.
SBUX Recent Stock Market News
This week, Starbucks announced that its board of directors had approved an increase to the company’s quarterly cash dividend. Specifically, the company increased its quarterly cash dividend from $0.49 to $0.53 per share. As a result, this brings Starbucks’ annual dividend rate to $2.12 per share. Meanwhile, since Starbucks began offering dividends in 2010, it has increased its dividends in each of the past 12 years.
Apart from that, last month the company reported better than expected Q3 2022 financial results. In detail, Starbucks reported third quarter 2022 earnings of $0.84 per share with revenue of $8.2 billion. Additionally, the company recorded an 8.7% increase in revenue over the same period a year ago.
Additionally, Starbucks Chief Financial Officer Rachel Ruggeri had this to say about the quarter: “We delivered record revenues in the quarter driven by continued strength in global client demand, balanced by our ability to execute investments despite macroeconomic and operational headwinds. Our commitment to creating shareholder value has not wavered, and today we are making the right decisions and the right investments for the future of Starbucks.”
SBUX Stock Chart
Over the past 5 trading days, Starbuck shares have recovered more than 2% in Friday morning’s trading session to $86.40 per share.
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