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Best Consumer Discretionary Stocks for August 2020

AMZN is at the top of momentum, and MGM is at the peak of valuation and progress

Best Consumer Discretionary Stocks for August 2020
Yazar: Tom Roberts

Yayınlanma: 19 Ağustos 2020 23:35

Güncellenme: 21 Aralık 2024 05:27

Best Consumer Discretionary Stocks for August 2020

Market consumption businesses offer products and services that are deemed non-essential, such as furniture, vehicles and shows. Popular cases include Home Depot Inc. (HD), McDonald's Corp. (MCD) and Nike Inc. (NKE). Consumer discretionary firms continue to be more responsive to the broader market cycle as customers are more inclined to limit or delay their spending transactions when times become tough. On the other side, market product firms concentrate on important products such as food and drinks. Consumer discretionary stocks, as represented by the Consumer Discretionary Select Sector SPDR ETF (XLY), have surpassed the broader market, presenting shareholders with a total return of 12.7% relative to the S&P 500 with a total return of 9.7% over the last 12 months. Such business activity estimates and the data in the tables below are as of July 30 before post-market results. Since we are in the middle of the earnings season, certain businesses can announce their current quarterly earnings after that date. Below are the top three consumer discretionary companies with the highest valuation, the quickest sales development and the best momentum. These are consumer discretionary stocks at the lowest 12-month trailing price-to - earnings (P / E) ratio. Since earnings may be distributed to owners in the form of dividends and buybacks, the low P / E ratio indicates that you pay less for each dollar of income produced. Best Value Consumer Discretionary Stocks These are consumer discretionary stocks at the lowest 12-month trailing price-to - earnings (P / E) ratio. Since earnings may be distributed to owners in the form of dividends and buybacks, the low P / E ratio indicates that you pay less for each dollar of income produced.
Best Value Consumer Discretionary Stocks
Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
MGM Resorts International (MGM) 16.25 8.0 2.9
eBay Inc. (EBAY) 54.53 38.3 8.2
Mohawk Industries Inc. (MHK) 86.01 6.1 8.5
  *MGM Resorts International: MGM is a holding firm that manages and runs casino resorts through its subsidiaries. Group resorts provide sports, hotel, conference, shopping , entertainment, store and other resort facilities. After the date on which the data for our screen was obtained, the organization announced its new Q2 2020 performance, which were impacted by safety guidelines and travel restrictions linked to COVID-19. *EBay Inc.: eBay is a multinational e-commerce company that brings buyers and sellers from various countries across the world. The business provides web trading marketplaces and classified advertising. Due to COVID-19, eBay reported at the beginning of May that its markets were having rising traffic, but that classified advertising were dropping. EBay announced a rise in operating sales and net profits in the last period of Q2 2020. The business acknowledged that the results were higher than anticipated and offered expectations for the year. *Mohawk Industries Inc.: Mohawk Industries produces and manufactures residential and industrial flooring goods. The company's products include carpet, ceramic tiles, laminate, wood , stone, vinyl, rugs and more. Fastest Growing Consumer Discretionary Stocks Those are consumer goods companies with the fastest year-over-year (YOY) earnings per share (EPS) increases over the last year. Rising results demonstrate that the company's profit is increasing and produces more revenue than can be reinvested or distributed to shareholders.
Fastest Growing Consumer Discretionary Stocks
Price ($) Market Cap ($B) EPS Growth (%)
MGM Resorts International (MGM) 16.25 8.0 3,180
Aptiv PLC (APTV) 83.67 22.6 567.4
eBay Inc. (EBAY) 54.53 38.3 128.3
  *MGM Resorts International: See the description of the company above. *Aptiv PLC: Aptiv PLC is an Irish-based designer and supplier of automotive parts concentrating on protection equipment and electrical systems. *eBay Inc.: See the description of the company above. Consumer Discretionary Stocks with the Most Momentum These are consumer discretionary stocks with the highest overall return over the last 12 months.
Consumer Discretionary Stocks with the Most Momentum
Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Amazon.com Inc. (AMZN) 3033.53 1,513 58.6
Domino's Pizza Inc. (DPZ) 385.15 15.2 54.0
D.R. Horton Inc. (DHI) 66.60 24.2 53.3
S&P 500 N/A N/A 9.7
Consumer Discretionary Select Sector SPDR ETF (XLY) N/A N/A 12.7
  *Amazon.com Inc.: Internet marketplace Amazon.com provides a broad variety of items in a large spectrum of markets, as well as a forum for customers and vendors to interact. The business also delivers streaming entertainment, cloud storage, and other facilities. Amazon has gained from growing e-commerce traffic as domestic customers across the world have steadily shopped digitally despite the COVID-19 health crisis. The business announced a net revenue rise of 99.7 per cent on net sales development of 40.2 per cent for Q2 2020, which ended on 30 June 2020. *Domino's Pizza Inc.: Domino's Pizza, a food distribution service with a network of over 17,000 locations, experienced the same demand increase of 16.1 percent in Q2 2020 when consumers shifted their behaviour in COVID-19. The company reported a net revenue increase of 28.5 per cent on revenue growth of 13.4 per cent for Q2, which ended on 14 June 2020. On July 16, Domino reported that Jeffrey D. Lawrence will resign as Executive Vice President and Chief Financial Officer (CFO). The company said Lawrence would remain as CFO until a successor has been found. *D.R. Horton Inc.: D.R. Horton is a regional homebuilder involved in the building and selling of single-family houses. The company also provides mortgage financing and financial advisory to homebuyers. Given the devastation of the coronavirus pandemic, record low mortgage levels fuelled demand for housing. D.R. Horton announced a net sales rise of 33.6 per cent on revenue development of 9.9 per cent for fiscal year Q3 2020, which concluded on 30 June 2020.
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