Sep 22, 2022 (StockMarket.com via COMTEX) -- Consumer discretionary stocks are those that relate to consumer spending on non-essential goods and services. These can include items like automobiles, clothing, entertainment, and restaurants. For example, some of the more popular consumer discretionary stocks are names like The Walt Disney Company ( NYSE: DIS ), and Nike Inc. ( NYSE: NKE ). In addition to that, consumer discretionary stocks tend to be more volatile than other types of stocks, as they are sensitive to changes in consumer spending patterns. For example, during an economic recession, consumers may cut back on spending on discretionary items in order to save money.
As a result, the stock prices of companies in the consumer discretionary sector may decline. However, when the economy is doing well, consumer discretionary stocks can perform very well. Companies in this sector often benefit from increased consumer spending power and rising disposable incomes. For investors looking for growth potential, consumer discretionary stocks can be an attractive option among stock market investors. . If this has you keen on investing in the consumer discretionary sector, here are three companies to check out today.
Consumer Discretionary Stocks To Watch Now
The TJX Companies Inc. ( NYSE: TJX )
Target Corporation ( NYSE: TGT )
Starbucks Corporation ( NASDAQ: SBUX )
1. The TJX Companies Inc. (TJX Stock)
First up, we have TJX Companies Inc. (TJX). In short, TJX Companies is an American multinational off-price department store chain. Some of the company's brands include names like TJ Maxx, Marshalls, HomeGoods, and Sierra Trading Post. In reference to scale, as of January of this year, TJX operated approximately 4,700 stores globally, as well as five e-commerce businesses.
In August, TJX Companies reported its second quarter 2022 financial results. Diving in, the company reported earnings of $0.69 per share, along with revenue of $11.8 billion for Q2 2022. Meanwhile, Wall Street's consensus estimates for the quarter were earnings of $0.67 per share and revenue of $12.1 billion. Additionally, TJX said in the release that it estimates 3rd quarter earnings of $0.77 to $0.81 per share. They also said they now project full-year fiscal 2023 earnings between $3.05 to $3.13 per share.
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, "I am very pleased that our second quarter pretax profit margin exceeded our plan and earnings per share were at the high end of our guidance. We believe our strong profitability speaks to the strength and flexibility of our off-price business model, sharp execution of our teams, and expense discipline."
Separate from that, earlier this week, the company's Board of Directors declared a quarterly dividend on its common stock of $0.295 per share. This results in an annual dividend yield for TJX of 1.90%.
Meanwhile, TJX stock is still down just under 18% so far this year. Though, shares of TJX company's stock have rebounded by over 4% in the last 6 months of trading. On Thursday, the stock closed at $62.01 per share. All in all, will you be keeping TJX stock on watch right now?
2. Target Corporation (TGT Stock)
Following up, let's dive into retail giant Target Corporation (TGT). For starters, Target operates over 1,900 stores across the United States. As of the end of 2021, Target Corporation is the seventh largest retailer in the United States, behind Walgreens Boots Alliance Inc. ( NASDAQ: WBA ). In addition, the company offers a variety of products and services, including apparel, home decor, and health and beauty products. Target also offers a wide range of digital services, such as online shopping and mobile apps. For a sense of scale, today Target has nearly 2,000 retail locations. Currently, investors who own Target stock enjoy an annual dividend yield of 2.67%.
Last month, Target announced weaker-than-expected second-quarter 2022 results. Diving in, the company reported earnings of $0.39 per share, along with revenue for the quarter of $26.0 billion. This fell short of analysts' consensus estimates which were earnings of $0.71 per share, on revenue of $26.1 billion. Moreover, Target reaffirmed its fiscal 2023 revenue estimates of $107.1 billion to $112.4 billion.
Moving along, just today the company announced its Board of Directors has declared a quarterly dividend of $1.08 per common share. This announcement represents the 221st consecutive quarterly dividend paid by Target since October 1967.
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