Are these the best consumer stocks to buy in July?
As investors keep tabs on the best stocks to buy today, consumer stocks might be worth checking out. For one, the 4th of July weekend is fast approaching and consumers looking to let loose would be spending. Although inflation has made backyard barbecues more expensive, market research firm Numerator reported that about 60% of Americans still plan to grill this weekend to keep up with traditions. With such a good weekend ahead, it would make sense for investors to look to consumer stocks today.
Speaking of food, Simply good food (NASDAQ: SMPL) just released its third quarter 2022 financial results. Diving net sales were $316.5 million, an increase of $32.5 million year over year. another thanks to strong take-out retail sales in the quarter. The company also reported net income of $38.8 million, down from $5.9 million in the same period. Following these upbeat numbers, the company also presents a positive outlook for the full fiscal year 2022. Namely, according to Simply Good Foods’ press release, it expects net sales to increase year over year. another 14% to 15%.
Another company investors might consider ahead of the holiday weekend is PepsiCo (NASDAQ: PEP). Recently, the company opened an $8.5 million facility nearly 70 miles from Atlanta. In short, the facility will help distribute more than 6 million cases of beverages across 28 counties in Georgia. These expansions came after Pepsi posted a net profit of $4.3 billion in the first quarter. Knowing all that, here are three more consumer stocks to watch in the stock market right now.
Consumer stocks to watch today
Constellation Brands Inc.
Starting today, we have Constellation Brands, a consumer company that produces spirits, beer and wine. In fact, it is one of the largest beer import companies in the United States and it does business all over the world. Its brand portfolio includes Corona Extra and Pacifico. With over 70 years of distillery experience, the company continues to embrace innovation and bold ideas to serve its customers.
Today the company released its first quarter financial statements for fiscal year 2023. Diving in, net sales for the quarter were $2.36 billion, a 17% increase from a year to year. It also posted an operating profit of $816 million. On top of that, Constellation also reported earnings per share of $2.06. Its beer business achieved double-digit growth in net sales and operating income with strong runout growth as well. This was driven by strong performance from its Corona Extra and Modelo Especial brands.
Additionally, Constellation updated its fiscal 2023 outlook to put its earnings per share in the range of $10.50 to $10.80. The company also confirms its operating cash flow target for fiscal year 2023 of $2.6 billion to $2.8 billion. It also returned $1.3 billion to shareholders in share buybacks through June 2022. This would include a previously announced $500 million accelerated share buyback. All things considered, is it worth investing in STZ stocks right now?
[Read More] Stock market today: Dow Jones, S&P 500 wavers; Walgreens shares slide despite strong quarter
Another consumer-focused company to consider in the stock market today is Nio. This well-known Chinese electric vehicle (EV) manufacturer has and continues to expand its business globally. This is evident from the ongoing construction of its electric vehicle battery exchange network in Europe. Couple that with its latest ES7 SUV launch earlier this month, and most would say the company remains as busy as ever.
All in all, while all of this might give investors reason to consider NIO shares, the company’s latest press release is grabbing some attention. In detail, the company’s shares continue to experience volatility in response to a recent report from short seller Grizzly Research. The likes of who released a report accusing Nio of inflating his earnings numbers through a venture. As a result, Nio was quick to respond with a statement stating that the report is “baseless and contains numerous errors, unsubstantiated speculations and misleading conclusions and interpretations.”
As a result of all of this, the company’s shares continue to experience a stock market deceleration currently. Despite the negative press, Morgan Stanley (NYSE: MS) Analyst Tim Hsiao appears bullish on NIO stock. The analyst is calling for tactical ideas from the Chinese electric vehicle company. This means that Morgan Stanley believes the stock price will post gains over the next 15 days. According to Hsiao, there are several main reasons for the update. In particular, he cites Nio’s optimistic sales in June, the current volume trajectory for 2H 2022 and “strong product pipeline.“With all of this in mind, do you consider NIO stocks to be the best consumer stocks to buy right now?
[Read More] The best long-term stocks to buy now? 5 Semiconductor Stocks You Should Know
Finally, we have the fast food giant McDonald’s. Essentially, the company has three main segments, its US branches, International Operated Markets (IOM) and International Licensed Development Markets and Enterprises (IDL). These divisions separate its operations by regions, with the US segment focusing on domestic markets and the IOM segment focusing on Australia, Canada, France, etc. Meanwhile, the IDL segment focuses on Latin America and Asia.
Last week, McDonald’s expanded its mobile app partnership with a fintech platform Adyen (OTCMKTS: ADYEY) in the US In short, Adyen delivers convenience and streamlines the customer experience. It accomplishes this by allowing customers to pay using their registered McDonald’s payment method using a four-digit code. In early 2020, the two companies began collaborating in the UK, and they are now expanding to other international markets.
Additionally, McDonald’s was upgraded by Atlantic Equities analyst Edward Lewis. The upgrade is from a neutral rating to an overweight rating. Additionally, Lewis raised the company’s price target from $245 to $278. This upgrade was made because Lewis noted that the “The quick-service restaurant demonstrates resilience during periods of economic weakness.” With the restoration of the US store base substantially complete, the priority for CAPEX will be to open additional units in the IOM segment. Given all this, is MCD stock on your watchlist?
If you enjoyed this article and want to learn how to trade so that you have the best chance of making a profit consistently, you need to check out this YouTube channel. CLICK HERE NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.