Apr 22, 2022 (StockMarket.com via COMTEX) -- Are These The Best Consumer Discretionary Stocks To Invest In Today?
As investors continue to ride the wave of positive earnings, for now, consumer discretionary stocks are in focus. For the most part, this area of the stock market today has not had the best year so far. Across the board, consumer discretionaries alongside other cyclical sectors has come under fire due to growing macro headwinds. This ranges from surging inflation and supply chain issues to the global supply shortages stemming from the geopolitical conflict in Eastern Europe. All of which would, in theory, weigh in on the industry.
Despite all this, the latest batch of earnings and outlooks seem to be fueling investor interest in the area again. Take Tesla ( NASDAQ: TSLA ) for example. The electric vehicle (EV) goliath is surging after posting stellar results in its latest quarterly update on Wednesday. In it, Tesla saw its automotive sales surge by 87% year-over-year, totaling $16.86 billion. At the same time, banking firms such as Bank of America ( NYSE: BAC ) also note that consumer spending remains healthy despite inflation. According to BofA CEO Brian Moynihan, this is thanks to greater spending capacity resulting from lower loan balances. After considering all this, could one of these consumer discretionary stocks be worth noting in the stock market now?
Consumer Discretionary Stocks To Buy [Or Sell] Ahead Of May 2022
American Airlines Inc. ( NASDAQ: AAL )
Amazon.com Inc. ( NASDAQ: AMZN )
United Airlines Holdings Inc. ( NASDAQ: UAL )
Shopify Inc. ( NYSE: SHOP )
AT&T Inc. ( NYSE: T )
American Airlines Inc.
For starters, we have American Airlines, or AAL, for short. In essence, AAL is a leading name among airline operators now. Like most of its airline peers, the company has and continues to recover from its pandemic era lows. Through its portfolio, AAL facilitates almost 6,700 daily flights to nearly 350 destinations across more than 50 countries. Following its latest quarterly earnings release, AAL stock is gaining plenty of attention now.
Getting straight to it, the company is looking at a loss per share of $2.32 on a revenue of $8.9 billion. This would top Wall Street forecasts of a $2.40 loss and revenue of $8.826 billion for the quarter. In terms of year-over-year comparisons, AAL's revenue has more than doubled. For the current quarter, the company is expecting a turn to profit, citing strong bookings mitigating rising fuel costs. As such, would you consider AAL stock a top buy now?
Amazon is a consumer tech company that focuses on e-commerce, digital streaming, and cloud computing. In fact, it is one of the most valuable companies in the world and also one of the most influential economic and cultural forces as well. This week, the company announced that it will let other online merchants piggyback on its Prime service to deliver goods quickly to their customers. The company recently launched its Buy with Prime service, allowing third-party merchants to use Amazon's vast shipping and logistics network to fulfill orders on their own sites.
It also announced 37 new renewable energy projects around the world, marking yet another significant milestone for its path to power 100% of its operations with renewable energy by 2025. The new projects increase the capacity of Amazon's renewable energy portfolio by nearly 30%, from 12.2 GW to 15.7 GW, and bring the total number of renewable energy projects to 310 across 19 countries. "Our commitment to protecting the planet and limiting Amazon's impact on the environment has led us to become the largest corporate buyer of renewable energy in the world in both 2020 and 2021. Given the growth of our business, and our mission to run 100% of Amazon's operations on renewable energy, we aren't slowing our renewable investments down," said Andy Jassy, CEO of Amazon. Given this piece of news, should investors consider AMZN stock?
United Airlines Holdings Inc.
Another cyclical firm to consider in the stock market now would be United Airlines or UAL, for short. Similar to AAL, the company is also actively working towards its pre-pandemic operational proficiency. As it stands, UAL is on schedule to fly 87% of its 2019 levels in the current quarter. With this upward momentum in mind, investors could also be tuning in to UAL stock now.