As the economy reopens, should investors be paying attention to these consumer stocks?
Top Consumer Stocks To Watch In The Stock Market This Week
As we slowly shift to a post-pandemic recovery phase, some investors are rebalancing their portfolios into reopening stocks. After being battered by the coronavirus pandemic last year, will these consumer stocks return to their pre-pandemic levels and beyond? There are plenty of factors working against the sector, yet a list of top consumer stocks have bounced back in recent weeks.
Could momentum be continuing in the sector going forward? For instance, we can see leading vacation companies like Bluegreen Vacations Corp. (NYSE: BXG) rising by over 50% year-to-date. Additionally, casino developer and operator Full House Resorts (NASDAQ: FLL) has also seen gains of over 120% in this same period.
Given how broad the sector may be, there are plenty of top consumer stocks that are poised for further growth. With some due diligence and proper research, you could find some of the best consumer stocks that could potentially bring in big gains. With all that in mind, do you have this list of top consumer stocks to capitalize from the reopening of the country?
Consumer Stocks To Consider Buying [Or Selling] Today
- PLBY Group Inc. (NASDAQ: PLBY)
- ChargePoint Holdings Inc. (NYSE: CHPT)
- Conn’s Inc. (NASDAQ: CONN)
- JD.com Inc. (NASDAQ: JD)
PLBY Group Inc.
First, on the list, we have leading pleasure and leisure company PLBY Group. It is the parent company of the flagship Playboy brand. The iconic lifestyle brand alone currently drives more than $3 billion in consumer spending annually across 180 countries. Since the beginning of March, PLBY stock has surged more than 100% and is showing no sign of stopping. Investors appear to be flocking to PLBY stock now thanks to its recent financial update. PLBY Group’s activities in 2020 paid off as revenues were up 89% year over year to $148 million. The company expects to achieve revenues above $200 million this year.
Source: TD Ameritrade TOS
The company has a strong global distribution of its products across the globe. Half of its revenues were from the U.S. with 27% in China and another 22% from other regions. The recent acquisition put the company in a great position to accelerate its product distribution across its network. Its recent acquisition of Lovers could potentially accelerate product distribution across its network.
The consumer discretionary giant has also been looking into expanding art offerings with NFTs and launching its own cannabis line. As the company attracts attention from both consumers and investors alike, could PLBY stock be worth the investment?
ChargePoint Holdings Inc.
Next up we have world-leading electric vehicle (EV) charging network player, ChargePoint Holdings. Investors have been keen on CHPT stock as share prices surged 40% since Tuesday last week. So, what may have caused the rally? If you have been following the company’s progress, you would know that Biden’s ambitious $2.3 trillion infrastructure proposal played a part in that rally. Specifically, $174 billion is dedicated to boosting the EV industry with a proposed additional 400,000 new EV charging stations. Investors were certainly pleased with the news as it could be a huge potential revenue booster for ChargePoint.
Source: TD Ameritrade TOS
To date, ChargePoint claims it has more than 70% market share of networked Level 2 charging. Almost 90 million charging sessions have been delivered with drivers plugging into the network approximately every two seconds. It is the largest player in the EV charging space. The recent completion of ChargePoint’s merger with Switchback also provided the company with a strong balance sheet of $615 million in cash. The large cash reserve certainly positions the company well to fund its future growth. With such promising growth, won’t it be exciting to have a piece of the company?
Conn’s is a Texas-based specialty retailer of furniture, home appliances, electronics, and home office products, and a provider of consumer credit. The last bit on consumer credit is what could potentially provide Conn’s a competitive edge over its competitors. You could say Conn’s offers many of what the average consumer constantly needs in home appliances. CONN stock has surged by over 40% since the start of last week. This came after the company reported its financial results for the quarter ended January 31, 2021.
Source: TD Ameritrade TOS
Although Conn’s saw quarterly revenue declining 11% from a year ago, the impact of the pandemic may be dissipating. To top that off, the company also more than doubled e-commerce sales throughout the fiscal year. The company has opened 9 more of its Conn’s HomePlus® showrooms adding to a total of 152 showrooms up to date.
Conn’s CEO, Norm Miller believes Conn’s is at an inflection point in its growth strategy. He added that the company will continue to leverage its best-in-class credit offerings, increase e-commerce investments, expand and enhance its footprint and marketing strategies. “We believe these strategic initiatives, combined with our unique value proposition, will support long-term and sustainable growth,” concluded Miller. With Conn’s current momentum, would it be safe to say that CONN stock has more room to run?
Last but not least, JD is a consumer company that focuses on online retail. In fact, it is one of the two massive business-to-customer (B2C) online retailers in China by transaction volume and revenue. The company is also a member of the Fortune Global 500. Its cutting-edge retail infrastructure seeks to enable customers to buy whatever they want, whenever they want. JD stock is recently in focus as it embarks on a major restructuring, spinning off its cloud, AI and supply chain businesses.
Source: TD Ameritrade TOS
From the company’s fourth-quarter report, the company reported a net revenue of $34.4 billion. This represented a 31.4% increase from a year ago. The company also ended the quarter with $5.4 billion in cash. What’s more, it enjoyed a 30.3% increase of its annual active customer accounts to 471.9 million in 2020.
JD saw accelerated revenue and user growth during the fourth quarter that was driven by its long-term operating philosophy and customer-centric value proposition. It also continued to diversify its sources of revenue which includes JD Health and JD Logistics. With such exciting developments surrounding the company, will you consider buying JD stock?
Originally Posted on April 6, 2021 – 4 Consumer Stocks To Watch In April 2021
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