Sep 30, 2022 (StockMarket.com via COMTEX) -- Consumer stocks are a type of equity that represents ownership in a company that produces goods and services for consumers. Generally, consumer stocks fall into one of three categories: discretionary, staples, and cyclical. In addition, consumer stocks can be found in a variety of industries, including food and beverage, retail, and healthcare. For example, top companies like Walgreens Boots Alliance ( NASDAQ: WBA ) and General Mills Inc. ( NYSE: GIS ) can be categorized as consumer companies.
Many investors view consumer stocks as a safe and reliable investment, as consumer demand is typically less volatile than other economic indicators. Also, consumer stocks also tend to perform well during periods of inflation, as rising prices often lead to increased spending on goods and services.
However, consumer stocks can also be susceptible to economic downturns, as consumers may cut back on spending during tough economic times. When considering an investment in consumer stocks, it is important to carefully consider the risks and potential rewards of each individual stock before making a purchase. With this in mind, check out these three trending consumer stocks to watch in the stock market now.
Consumer Stocks To Watch Now
1. Walmart (WMT Stock)
Kicking off this list today, Walmart Inc. (WMT) is an American multinational retail corporation. The company operates a chain of supercenters, hypermarkets, warehouse clubs, supermarkets, and more. For a sense of scale, every week, nearly 230 million customers visit more than 10,500 retail stores throughout 24 countries worldwide. With the fiscal year 2022 revenue of $573 billion, Walmart employs approximately 2.3 million associates worldwide. Today, Walmart shareholders receive an annual dividend yield of 1.69%.
Moving along, In August Walmart announced its second-quarter 2022 financial and operating results. Diving in, the company reported Q2 2022 earnings of $1.77 per share along with revenue of $152.9 billion. This is versus, analysts' consensus estimates for the second quarter of 2022, which was earnings of $1.60 per share and revenue of $150.5 billion.
Additionally, Walmart reported that its U.S. comp sales and e-commerce growth advanced by 6.5%, and 12% respectively. Furthermore, the company said it estimates third-quarter 2022 earnings in the range of $1.29 to $1.32 per share, and revenue estimates of $147.55 billion.
Doug McMillon, President & CEO at Walmart said this about the quarter, "We're pleased to see more customers choosing Walmart during this inflationary period, and we're working hard to support them as they prioritize their spending. The actions we've taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year."
As of Friday morning's trading session, shares of Walmart stock are trading down modestly 0.79% at $131.16 per share.
2. Nike (NKE Stock)
Next up, we have Nike Inc. (NKE). Nike is an American multinational corporation. The company is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. In addition, Nike is the largest athletic footwear and apparel brand in the world.
After the market closed on Thursday, Nike reported its fiscal 2023 first-quarter financial results. In the report, Nike reported first-quarter 2023 earnings of $0.93 per share with revenue of $12.7 billion. For context, Wall Street's consensus earnings estimate was $0.91 per share and revenue of $12.3 billion for Q1 2023. Additionally, Nike reported a revenue increase of 3.6% during the same period, a year prior.
However, on the company's conference call they said it now estimates fiscal 2023 revenue of approximately $47.18 billion to $49.75 billion. This forecast is lower than what the company reported previously of full-year 2023 revenue of approximately $51.38 billion.