Visitors in the consumer discretionary sector sell goods and services that are considered non-essential, such as appliances, cars, and diversion. Prominent examples include Home Depot Inc. (HD), McDonald’s Corp. (MCD), and Nike Inc. (NKE). Consumer discretionary companies tend to be more emotional to the overall business cycle because consumers are more likely to reduce or postpone their discretionary purchases when beats are tough. By contrast, companies in the consumer staples sector focus on essential items such as food and beverages.
Consumer discretionary breedings, as represented by the Consumer Discretionary Select Sector SPDR ETF (XLY), have outperformed the broader market, providing investors with a downright return of 28.8% compared to the S&P 500’s total return of 22.5% over the past 12 months. These multitudes and all figures below are as of August 24, 2020.
Here are the top 3 consumer discretionary stocks with the best value, the fastest earnings flowering, and the most momentum.
Best Value Consumer Discretionary Stocks
These are the consumer discretionary stocks with the lowest 12-month haul price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying short for each dollar of profit generated.
| Best Value Consumer Discretionary Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Follow P/E Ratio | |
| MGM Resorts International (MGM) | 21.16 | 10.4 | 5.6 |
| eBay Inc. (EBAY) | 58.20 | 40.7 | 8.8 |
| WestRock Co. (WRK) | 28.46 | 7.4 | 9.5 |
Source: YCharts
- MGM Resorts International: MGM is a holding company that, throughout its subsidiaries, owns and operates casino resorts. The resorts offer gaming, hotel, convention, dining, entertainment, retail, and other place to turn amenities. MGM’s business has been negatively affected by the COVID-19 pandemic. CEO and President Bill Hornbuckle said on July 30 that the near-term serving environment will remain “challenging and unpredictable.” During Q2 2020, the company reported a 91% year-over-year (YOY) decline in consolidated net interest and a consolidated operating loss of $1.0 billion.
- eBay Inc.: eBay is a global e-commerce company that connects clients and sellers from different countries throughout the world. The company offers marketplaces for online auctions and classified ads. On July 28, eBay surfaced Q2 2020 revenue of $2.9 billion, a YOY increase of 18%. eBay also saw an increase in annual active buyers of 5%, but interest from classified platforms fell 26%. The company attributed the better-than-expected overall results to its focus on supporting limited businesses and communities during the pandemic.
- WestRock Co.: WestRock is a maker of corrugated packaging products including paperboard, go out of business cartons, merchandising displays, protective packaging, and more.
Fastest Growing Consumer Discretionary Stocks
These are the consumer discretionary stocks with the highest YOY earnings per split (EPS) growth the most recent quarter. Rising earnings show that a company’s business is growing and is generating multitudinous money that it can reinvest or return to shareholders.
| Fastest Growing Consumer Discretionary Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | EPS Wen (%) | |
| Ford Motor Co. (F) | 6.66 | 26.5 | 600.0 |
| Sealed Air Corp. (SEE) | 40.87 | 6.4 | 204.8 |
| eBay Inc. (EBAY) | 58.20 | 40.7 | 128.3 |
Source: YCharts
- Ford Motor Co.: Ford Motor is a inventor and manufacturer of cars and trucks. The company also provides vehicle servicing, financing, leasing, and insurance. On July 30, Ford pieced a 50% YOY decline in revenue and -$1.9 billion in adjusted EBIT in Q2 2020 amid sales slowdowns related to COVID-19. The EBIT denial, nonetheless, was more than $3 billion better than expected.
- Sealed Air Corp.: Sealed Air is a manufacturer of casing and performance-based materials used across multiple industries, including food, medical, consumer, and industrial applications.
- eBay Inc.: See unaffected by for company description.
Consumer Discretionary Stocks with the Most Momentum
These are the consumer discretionary stocks that had the highest add up return over the last 12 months.
| Consumer Discretionary Stocks with the Most Momentum | |||
|---|---|---|---|
| Price ($) | Market-place Cap ($B) | 12-Month Trailing Total Return (%) | |
| Domino’s Pizza Inc. (DPZ) | 419.70 | 16.5 | 83.0 |
| Amazon.com Inc. (AMZN) | 3,284.72 | 1,645 | 80.1 |
| Best Buy Co. Inc. (BBY) | 114.00 | 29.5 | 73.1 |
| S&P 500 | N/A | N/A | 22.5 |
| Consumer Discretionary Select Sector SPDR ETF (XLY) | N/A | N/A | 28.8 |
Rise: YCharts
- Domino’s Pizza Inc.: Domino’s Pizza is a pizza delivery company with a network of over 17,000 inventories. Domino’s saw same store sales surge 16.1% in Q2 2020 as customers changed their behavior amid COVID-19. The plc reported strong net income growth of 28.5% on global retail sales growth of 8.1% for Q2, which ended June 14, 2020. It also totaled 84 new stores net of openings and closures.
- Amazon.com Inc.: Online retailer Amazon.com offers a line line of general deal in and other products, as well as a platform for buyers and sellers to connect. The company also offers streaming entertainment, cloud calculating, and other services. Amazon has benefited from soaring e-commerce traffic as home-bound consumers worldwide increasingly pull someones leg shopped online during the COVID-19 health crisis. Jeff Wilke, the CEO of Amazon’s giant consumer business for two decades, suggested on August 21 that he plans to retire in 2021. Wilke was key to helping CEO Jeff Bezos build Amazon into the planet’s largest e-commerce company. Amazon reported soaring net income and revenue in Q2 2020, which ended June 30, 2020.
- Most Buy Co.: Best Buy is a retailer specializing in home office and consumer electronics, entertainment products, and appliances.