As investors bunker down for the 2021 third-quarter earnings season, consumer discretionary stocks are on the move. After all, this part of the stock market today is home to companies that mainly focus on, well, consumers. Why would this be relevant now might you ask? Against the current backdrop of rising inflation and supply chain pressures, this would be a valid question. Nevertheless, there are numerous ongoing efforts across the board to deal with these issues now.
Namely, President Joe Biden is set to unveil plans to bolster U.S. port operations today. In detail, this will likely see notable ports across the West Coast get the green light to operate 24/7. At the same time, some of the largest retailers in the U.S. will also be working in tandem with the White House. This includes the likes of FedEx (NYSE: FDX), UPS (NYSE: UPS), Walmart (NYSE: WMT), and Home Depot (NYSE: HD). By and large, this would ideally serve to alleviate supply chain bottlenecks ahead of the upcoming holiday season.
Not to mention, September’s consumer price index changes are mostly in line with consensus estimates. This is evident with a month-to-month increase of 0.4% versus projections of 0.3%. Even so, there appear to be signs of the economy holding strong on its recovery path now. Arguably, this is evident as JPMorgan (NYSE: JPM), the largest U.S. bank, reported better-than-expected earnings earlier today. Overall, with the current strength in the economy, I could see investors watching the top consumer discretionary stocks now. With that said, here are three to consider in the stock market now.Top Consumer Discretionary Stocks To Buy [Or Sell] This WeekDelta Air Lines Inc.
First up on this list, we have Delta Air Lines, a global airline leader with headquarters in Atlanta. The company was named as the No. 1 airline by J.D. Power & Associates in its 2021 North American Satisfaction Study. This would be a testament to its decade-long airline industry leadership in operational excellence and award-winning customer service. DAL stock currently trades at $40.95 as of 2:21 p.m. ET.
Today, Delta posted a remarkable September quarter, with its first quarterly profit since the start of the pandemic. Its revenues reached two-thirds of pre-pandemic levels and the company attributes it to the industry-leading operational performance of its people. Diving in, total revenue for the quarter was $8.28 billion and it also posted an adjusted pre-tax income of $216 million. It also ended the quarter with $15.8 billion in liquidity. “While demand continues to improve, the recent rise in fuel prices will pressure our ability to remain profitable for the December quarter. As the recovery progresses, I am confident in our path to sustained profitability as we continue to provide best-in-class service to our customers, strengthen preference for our brand, while creating a simpler, more efficient airline.”
Its revenue recovery has shown strong progression through the course of the year as customers return to flying. Furthermore, this is fueled by robust holiday demand and Delta also expects an improvement in corporate and international demand. For its upcoming quarter, it also expects fourth-quarter revenue to recover to the low 70s percentage relative to 2019. Given this exciting piece of news, should investors be on the lookout for DAL stock?Source: TD Ameritrade TOS
Read MoreFuboTV Inc.
Following that, we will be taking a look at Fubo. In brief, it is a leading presence in the sports content streaming market today. Through its platform, consumers have access to a wide array of live sports content. Unlike most names in the streaming industry, Fubo is also looking to bring a layer of interactivity to its offerings. In essence, this is evident given its plans to bring integrated live sports wagering solutions to its platform. As FUBO stock currently trades at $27.19 as of 2:22 p.m. ET, could it be worth investing in?
While that remains to be seen, Fubo is hard at work growing its operations. Notably, it is now working with AT&T (NYSE: T) subsidiary, AT&T SportsNet. Through this carriage agreement, Fubo will soon be streaming AT&T’s regional sports content. This would be a timely move by Fubo given the upcoming 2021-2022 NBA and NHL seasons. On top of covering these highly anticipated annual sports leagues, Fubo will also stream related and behind-the-scenes content. These notable additions to the company’s massive library of sports offerings serve to offer subscribers a more holistic sports streaming service. In theory, this could significantly bolster Fubo’s market presence in the Rocky Mountain region.
All in all, Fubo appears to be kicking into high gear across the board. In fact, it is doing so after reporting record figures in its latest fiscal quarter report. Simply put, the company posted a record revenue of $130.9 million and grew its total paid subscribers by 138% year-over-year. With all this in mind, would FUBO stock be a top buy for you?Source: TD Ameritrade TOS Coinbase Global Inc.
Most may not think of Coinbase as a consumer discretionary company. But this may change following its announcement on Tuesday that non-fungible tokens (NFT) will be coming soon to its platform. For the uninitiated, Coinbase is a cryptocurrency exchange platform. It strives to build the cryptoeconomy with an accessible and transparent financial system. With over 68 million verified users and a quarterly volume traded of over $400 billion, the company is a major player in the crypto landscape. COIN stock currently trades at $245.74 as of 2:22 p.m. ET.
The company’s announcement on Tuesday relates to the Coinbase NFT, a peer-to-peer marketplace that will make minting, purchasing, and discovering NFTs easier than ever. NFTs are unique digital assets designed to represent ownership of online items like rare art or collectible trading cards. Coinbase says that similar to how it helped millions of people to access Bitcoin, it will strive to do the same with NFTs. This move could help the company find new streams of revenue given that it currently relies on exchange fees.
Today, it also announced a unified developer docs experience to help the next generation of developers use the APIs powering Coinbase. Coinbase Cloud would empower crypto developers by making it easier and faster for them to build their applications. All things considered, is COIN stock a top consumer discretionary stock to consider investing in right now?Source: TD Ameritrade TOS