Good shares to invest in now? 3 consumer stocks to watch

The consumer sector, also called the consumer goods or basic consumption sector, includes companies that produce or sell goods and services directly to ordinary people. This sector is closely linked to the overall health of the economy because it reflects how freely people spend their money on non-essentials like entertainment, luxury goods and dining out, or on essentials like food, drinks and household products. . In a booming economy, consumers tend to spend more on luxury items, while in a recession, spending may be limited to just the essentials.

Invest in consumer stocks can be both exciting and challenging. Given the direct correlation to consumer spending habits, these stocks can give investors an indication of the health of the economy. When people feel confident about their financial future, they are more likely to spend money, increasing revenues for companies in this sector.

However, it’s worth noting that consumer stocks can be volatile, especially discretionary stocks, because they are sensitive to economic cycles. Proper research and understanding of market trends are critical for anyone looking to invest in this dynamic segment of the market scholarship. Considering this, here are three consumer stocks to watch in the stock market today.

Consumer stocks to invest in [Or Avoid] Today

McDonald’s Corporation (MCD shares)

To start, McDonald’s Corporation (MCD) is a global leader in the fast food industry, operating thousands of restaurants in numerous countries. The company is recognized by its iconic golden arches and offers a menu with favorites such as the Big Mac, Happy Meals and various breakfast items.

In July, McDonald’s reported better-than-expected financial results for the second quarter of 2023. To cut to the chase, McDonald’s posted earnings per share of $3.17 on revenue of $6.50 billion for the second quarter of 2023. For context, this is versus Wall Street consensus estimates, which were earnings of $2.77 per share with revenue estimates of $6.23 billion. Moreover, sales increased by 13.62% compared to the same period last year.

In the last six months of trading, shares of MCD stock have risen 3.28%. Meanwhile, shares of McDonald’s opened modestly up 0.52% to $279.68 per share during Monday morning’s trading session.

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Walmart (WMT stock)

Next one, Walmart Inc. (WMT) is one of the largest retail chains in the world. The company has an extensive network of stores and supercenters offering a wide range of products at competitive prices.

Last month, Walmart reported earnings for its most recent quarterly financial results. In detail, the retail giant posted a profit of $1.84 per share for the second quarter of 2024, on revenue of $161.63 billion. This is compared to analyst consensus estimates for the quarter, which were for earnings of $1.69 per share, along with revenue expectations of $159.51 billion. Moreover, turnover grew by 5.74% compared to the same period last year.

Looking at the last six months of trading, Walmart shares are up 16.78%. While during Monday morning’s trading session, shares of WMT stock opened flat on the day so far at $164.63 per share.

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Costco Wholesale Corporation (COST Stock)

Finally, Costco Wholesale Corporation (COST) operates membership warehouses and offers its members discounts on a limited selection of branded products. The company is known for its bulk products and unique finds.

Late last month, Costco Wholesale Corporation announced its August 2023 sales results. The company reported net sales of $18.42 billion for the month, up 5.0 percent from $17.55 billion in the same period last year. Additionally, for most of the fiscal year, which spanned 52 of 53 weeks ending August 27, 2023, Costco reported net sales of $232.95 billion, up 4.6 percent from $222.70 billion in the corresponding time frame of the previous year.

In the last six months of trading action, Costco shares are trading 14.49% higher. Additionally, COST shares opened slightly higher by 0.64% during Monday morning’s trading session, trading at $559.90 per share.

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