Do You Have These Hot Consumer Discretionary Stocks On Your July Watchlist?
With the June jobs report showing better than expected figures, consumer discretionary stocks could be worth watching now. After all, this sector of the stock market would be in focus as more consumers secure jobs and possibly increase their spending power. In fact, even President Joe Biden believes that these figures indicate that the U.S. economy continues to gain momentum. Overall, President Biden said, “More jobs, better wages — that’s a good combination. Put simply, our economy is on the move, and we have Covid-19 on the run.” Considering all this, I could understand if investors are looking at the top consumer discretionary stocks in the market now.
Now, there is a wide selection of stocks to choose from in the sector today. This is evident given the recent attention around airline stocks and cruise line stocks on the reopening trade. Elsewhere, investors also appear bullish on conventional retail players such as Gap (NYSE: GPS) and Bed Bath & Beyond (NASDAQ: BBBY). On one hand, Gap’s recent Yeezy brand collaboration with celebrity Kanye West continues to turn heads. Namely, analysts from Wells Fargo (NYSE: WFC) believe that the deal could bring in almost $1 billion for the company. On the other hand, investment firm B. Riley (NASDAQ: RILY) recently hit BBBY stock with a buy rating and a $44 price target. Analysts cite the company’s new management and cost-cutting strategies as mid-term growth drivers. As it stands, both companies’ shares are currently sitting on gains of over 490% since their pandemic-era lows.
All in all, most consumer discretionary stocks will likely benefit from the economy’s reopening. Matching this trajectory, the consumer-focused industry seems to be making moves in anticipation of this. With all that said, here are three consumer discretionary companies making headlines in the stock market today.
Top Consumer Discretionary Stocks To Watch
- Royal Caribbean Cruises Ltd. (NYSE: RCL)
- Tilray Inc. (NASDAQ: TLRY)
- United Airline Holdings Inc. (NASDAQ: UAL)
Royal Caribbean Cruises Ltd.
Royal Caribbean is a global cruise holding company that is based in Miami, Florida. It is the world’s second-largest cruise line operator, after Carnival Corporation (NYSE: CCL). The company is the owner and operator of three global cruise vacation brands. Namely, Royal Caribbean International, Celebrity Cruises, and Silversea. It boasts 59 ships with an additional 14 on the way. RCL stock currently trades at $86.04 as of Friday’s closing and has been up by over 70% in the last year.
On June 26, 2021, the company together with local officials commemorated an important milestone on the cruise company’s journey to resume operations with its state-of-the-art luxury ship, Celebrity Edge. Richard Fain, Chairman and CEO of Royal Caribbean, had this to say, “Today is a day that brings momentum to our industry and to countless individuals and port communities around the world that are part of our travel and hospitality network.“
Last Tuesday, the company announced that it will require guests over the age of 16 sailing from U.S. ports to be fully vaccinated. Starting on August 1, 2021, the rule will apply to all guests over 12. This is part of the efforts that the company has taken to ensure the safety of its passengers and crew. Royal Caribbean’s Freedom of the Seas received a conditional sailing certificate from the CDC, which allows it to start sailing Friday. The ship completed its simulation cruise on June 20 from Port Miami. Given all of this reopening news, is RCL stock worth adding to your portfolio?
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Tilray Inc.
Tilray is a leading global cannabis lifestyle and consumer packaged goods company. It has operations all over the world and aims to be a trusted partner for its patients and consumers by providing them with a wide portfolio of high-quality products. Impressively, its production platform supports over 20 brands in over 20 countries, which includes comprehensive cannabis offerings and alcoholic beverages. TLRY stock has more than doubled in valuation over the last year.
Last week, the company announced its SweetWater Brewing Company has launched a new product collaboration with Canada’s leading craft cannabis brand, Broken Coast Cannabis Ltd. The Broken Coast BC Lager is the first cross-brand product developed in partnership with leading craft brands and will be Tilray’s first Canadian cannabis brand introduction into the U.S.
On June 8, 2021, the company also announced the launch of Symbios. Symbios is a medical cannabis brand that will complement the company’s existing medical brand portfolio in Canada. The new brand provides a broader spectrum of formats and unique cannabinoid ratios at a better price point. It will also offer medical patients a full comprehensive assortment of products, including flowers, oils, and pre-rolls for their health and wellness regiment. All things considered, is TLRY stock a top consumer discretionary stock to watch right now?
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United Airline Holdings Inc.
Another top name in the consumer discretionary space to consider now would be United Airlines Holdings Inc. For the most part, the Illinois-based airline operator would be a hot pick in the current reopening trade. Understandably, this would be the case because United operates one of the world’s largest airline networks. As more consumers get vaccinated by the day, demand for travel services would logically rise as well. With this in mind, UAL stock could be worth watching in the stock market now. The company’s shares are already looking at gains of over 160% since its pandemic era low.
Like most of its peers, the company continues to bolster its operations by increasing its manpower. In fact, the company recently informed its over 40,000 employees that their jobs would be safe. United seems to be holding strong even as pandemic aid for the sector expires this fall. Senior VP of inflight services, John Slater, cited the rebound in travel demands as a core factor for this optimistic update.
Not to mention, United is also making massive improvements in terms of its current aircraft fleet. As of last week, the company is currently ordering 270 Boeing (NYSE: BA) and Airbus jets. Notably, this marks United’s largest aircraft order to date. By and large, United appears to be firing on all cylinders, to say the least. Would all of this make UAL stock a top watch for you?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
