What Does Consumer Discretionary Mean?
Consumer discretionary refers to goods and services that are not considered essential. This includes items like dining out, travel, and entertainment. While consumer discretionary spending can fluctuate depending on economic conditions, it typically accounts for a significant portion of total consumer spending. As a result, consumer discretionary plays an important role in the overall health of the economy.
When consumers feel confident and have disposable income, they are more likely to spend money on discretionary items. This, in turn, can lead to increased economic activity and job creation. Conversely, when consumers are feeling uncertain or tight on cash, they may cut back on their spending on discretionary items. This can have a negative ripple effect on the economy as a whole.
What Are Consumer Discretionary Stocks?
Consumer discretionary stocks are those that represent companies that produce goods and services that are considered non-essential. These include items such as apparel, automobiles, entertainment, and recreation. Historically, these stocks have been more volatile than other types of stocks, as they are more sensitive to economic conditions.
However, they also tend to outperform during periods of economic expansion. For this reason, many investors consider consumer discretionary stocks to be a good addition to their portfolio. With this in mind, let’s check out three large-cap consumer discretionary stocks in the stock market today.
Consumer Discretionary Stocks To Watch Today
- Starbucks Corporation (NASDAQ: SBUX)
- Tesla Inc. (NASDAQ: TSLA)
- Lowe’s Companies Inc. (NYSE: LOW)
1. Starbucks Corporation (SBUX Stock)
Starting us off, let’s take a look at Starbucks Corporation (SBUX). In short, Starbucks Corporation is an American coffee company and coffeehouse chain. For a sense of scale, as of the end of fiscal 2021, the company operates nearly 35,000 retail locations across more than 80 countries worldwide.
SBUX Recent Stock News
In recent news, this month, Starbucks announced that it will be releasing its fourth-quarter 2022 and fiscal 2022 financial results on Thursday, November 3, 2022. The company will hold its investors’ conference call after the stock market closes.
Aside from that, at the end of September, Starbucks also announced its Board of Directors have approved a quarterly cash dividend increase from $0.49 to $0.53 a share. As a result, this increases Starbuck’s annual dividend rate to $2.12 per share.
SBUX Stock Price
Meanwhile, during Thursday morning’s trading session Starbucks stock is trading down 0.93% at $85.10 a share.
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2. Tesla (TSLA Stock)
Next up, we have electric vehicle giant Tesla Inc. (TSLA). For starters, Tesla, Inc. is an American multinational corporation that specializes in electric vehicles, energy storage, and solar panel manufacturing. Tesla’s current products include electric cars, batteries, vehicle chargers, and home solar panels. The company also offers lease and purchase financing options for its electric vehicles.
TSLA Recent Stock News
Just this week, Tesla reported weaker-than-expected third-quarter 2022 financial results. In detail, the company posted Q3 2022 earnings of $1.09 per share, along with revenue of $21.5 billion. For context, Wall Street’s consensus estimates for the quarter were earnings of $1.01 per share and revenue of $22.5 billion.
Moreover, these revenue figures for Tesla in Q3 2022 represent a 55.9 increase during the same period, a year prior. In addition to that, the company also announced that it produced over 365,000 vehicles while delivering over 343,000 vehicles in the third quarter of 2022.
TSLA Stock Price
On Thursday morning, shares of Tesla stock are trading modestly higher up 0.63% at $226.15 per share.
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3. Lowe’s Companies (LOW Stock)
Last not but least, Lowe’s Companies, Inc. (LOW) is a publicly traded American company that operates a chain of retail home improvement and appliance stores in the United States, and Canada. Lowe’s is the second-largest home improvement chain in the United States behind rival Home Depot and ahead of Menard’s.
LOW Recent Stock News
Back in August, Lowe’s reported its second quarter 2022 financial results. Diving in, the company reported earnings of $4.67 a share, with revenue of $27.5 billion. This was versus the consensus estimates which were earnings of $4.63 per share, with revenue of $28.3 billion. In that report, Lowe’s also said that it estimates fiscal 2023 earnings of $13.10 to $13.60 per share, with revenue estimates of $97 billion to $99 billion.
LOW Stock Price
Meanwhile, on Thursday morning, LOW stock is trading up 0.66% at $194.93 a share.
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