Are These The Best Consumer Stocks To Invest In 2022
It’s no surprise that consumer stocks are among the most popular sectors for investors in the stock market now. This is largely due to the fact that consumer companies tend to be moderately stable and generate consistent profits year-over-year. In addition, consumer stocks tend to be less volatile than other types of stocks, making them a good choice for defensive investors. While there are a number of different consumer stocks to pick from, some of the most popular include retailers, consumer goods, manufacturers, food, and beverage.
We can look at consumer discretionary companies like Apple (NASDAQ: AAPL) that continue to bring in a flux of new consumers with its latest tech offerings. Meanwhile, if you’re more of a defensive investor, we could look at consumer staples stocks like The Clorox Company (NYSE: CLX) Utimately, consumers tend to purchase their offerings out of necessity. Therefore, the demand for these goods will, in theory, continue despite the current economic conditions. Hence, I could understand if investors are keen on consumer stocks right now. With that, here are three top consumer stocks to watch in the stock market today.
Consumer Stocks To Buy [Or Avoid] Right Now
- The Home Depot Inc. (NYSE: HD)
- Costco Wholesale Corporation (NASDAQ: COST)
- Target Corporation (NYSE: TGT)
Home Depot (HD Stock)
Starting off this list is Home Depot (HD). For starters, Home Depot is the largest home improvement specialty retailer worldwide. According to its most recent quarterly update, the company operates via a total of 2,316 retail stores. This includes all 50 U.S. states, the District of Columbia, Guam, Canada, Mexico, and other locations. Powered by its huge workforce of more than 500,000 employees, Home Depot offers consumers a broad range of home improvement items combined with relevant services. The company is set to report its second quarter 2022 earnings on August 16, 2022, before the market opens.
With that, let’s just recap Home Depot’s most recent quarterly earnings result from May of this year. In detail, the company recorded its “highest first-quarter sales” in the history of the company. Specifically, Home Deport notched total sales for the first quarter of 2022 of $38.9 billion, representing a $1.4 billion gain year-over-year. Interestingly, over the last four quarters, the average earnings surprise has been 7.2%. Considering this, will you be watching HD stock prior to these earnings?
Costco Wholesale (COST Stock)
Next, we have Costco Wholesale (COST). In brief, Costco Wholesale is a membership-only big-box retail store where consumers go shopping for items in bulk. The company sells a broad selection of products ranging from dry food and sundries to consumer durables to fresh food. For a sense of scale, Costco Wholesale currently operates 834 warehouses globally, with the majority being in the U.S, Canada, Mexico, and Japan.
Just last week, the retailer reported its July 2022 sales results. Diving in, the company posted net sales of $16.85 billion for the retail month of July. This reflects an increase of 10.8% from $15.21 billion in 2021 for the same time period. What’s more, for the forty-eight weeks ended July 31, 2022, Costco recorded net sales of $205.19 billion, which is an increase of 16.4% versus $176.3 billion during the same time period the year prior. In the last month of trading action, COST stock has gained 8.41%, and is currently trading at $541.02 per share on Wednesday afternoon.
Moving along, last month Costco announced its quarterly cash dividend. Specifically, Costco’s board of directors declared a quarterly cash dividend on Costco’s stock of $0.90 cents a share. The quarterly dividend is payable on August 12, 2022, to shareholders of record at the close of business on July 29, 2022. Given all this, is COST a consumer stock to watch right now?
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Target (TGT Stock)
Lastly, let’s dive into Target (TGT). This big box retailer needs little to no introduction, but if you’re new here let’s take a brief look. The company is a general merchandise retailer that sells products through its retail stores and e-commerce channels. Its product category includes accessories and apparel, household essentials and beauty, food and beverage, home furnishing, and decor. As of Wednesday afternoon, shares of TGT stock are trading up 4.25% at $172.13 per share.
Back in May, Target’s board of directors announced that they have declared a quarterly dividend of $1.08 per common share. This reflects a 20% increase from $0.90 in the previous quarter. Impressively, this is the company’s 220th straight dividend paid since October 1976. As a result, Target is on track to record its 51st consecutive year of increased annual dividends. Continuing on, investors will be waiting to see how the company performs in its second quarter 202 earnings results. These results are expected to be announced on Wednesday, August 17. As such, should you add TGT to your August 2022 watchlist?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.