Top Consumer Discretionary Stocks for March 2020

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The consumer discretionary sector consists of companies selling goods and services that are considered non-essential, and are purchased if consumers have sufficient incomes. These products include automobiles, durable goods, apparel, and entertainment. Companies within the consumer discretionary sector are dependent on consumer incomes, making them sensitive to the business cycle. They include companies include Nike Inc. (NKE), Ford Motor Co. (F), and Hilton Worldwide Holdings Inc. (HLT). By contrast, the consumer staples sector includes companies that sell essential, non-cyclical items such as food and beverages. Consumer discretionary stocks, as represented by the Consumer Discretionary Select Sector SPDR ETF (XLY), have performed slightly better than the broader market, providing investors with a total return of 18.9% compared to the S&P 500’s total return of 18.4% over the past 12 months. These market performance numbers and the statistics in the tables below are as of February 24.

Here are the top 3 consumer discretionary stocks with the best value, the fastest earnings growth, and the most momentum.

Best Value Consumer Discretionary Stocks

These are the consumer discretionary stocks with the lowest 12-month trailing 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 less for each dollar of profit generated.

Best Value Consumer Discretionary Stocks
Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Macy’s Inc. (M 16.23 5.0 5.2
General Motors Co. (GM) 34.65 49.5 7.6
MGM Resorts International (MGM) 31.39 15.8 7.9
  • Macy’s Inc.: Macy’s is a department store retailer that sells a wide range of merchandise, including apparel, accessories, cosmetics, home furnishings, and other consumer goods. S&P Global Ratings downgraded Macy’s long-term credit rating last week to BB+ from B following the company’s announcement of a three-year plan to close 100 stores and cut about 2,000 corporate jobs. The agency said the downgrade reflects its view that Macy’s faces “considerable risks.”
  • General Motors Co.: GM designs, manufactures, and sells cars, trucks, crossovers, and automobile parts. The company also offers automotive financing. GM announced earlier this month that it would wind down sales, design and engineering operations in Australia and New Zealand. GM also announced plans to withdraw Chevrolet from Thailand by the end of 2020, planned to sell its Rayong manufacturing facility in the country to Chinese auto manufacturer Great Wall Motors.
  • MGM Resorts International: MGM is a holding company that, through its subsidiaries, owns and operates casino resorts. The company’s resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. MGM has been sued for a data breach that took place last year, which reportedly involved more than 10.6 million resort guests. The company recently confirmed a data breach that exposed the names and phone numbers of guests, but the company did not confirm the number of people affected.

Fastest Growing Consumer Discretionary Stocks

These are the consumer discretionary stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Fastest Growing Consumer Discretionary Stocks


Price ($) Market Cap ($B) EPS Growth (%)
Harley-Davidson Inc. (HOG 35.19 5.4 2,860
Hasbro Inc. (HAS) 89.97 12.3 2,770
Expedia Group Inc. (EXPE) 120.12 16.8 372.7
  • Harley-Davidson Inc.: Harley-Davidson engages in the manufacture and sale of custom, cruiser, and touring motorcycles. In addition to manufacturing motorcycles and related parts, and offering related services, the company also provides financing and insurance-related programs to Harley-Davidson dealers and their retail customers.
  • Hasbro Inc.: Hasbro designs, manufactures, and markets toys, games, interactive software, puzzles, and infant products. Some of the company’s brands include Monopoly, My Little Pony, Nerf, Play-Doh, and Transformers.
  • Expedia Group Inc.: Expedia provides online travel services for leisure and small business travelers. The company provides a range of travel shopping and reservation services, including real-time access to schedule, pricing, and availability information for airlines, hotels, and car rental companies. Expedia announced in December the resignations of Mark Okerstrom as Chief Executive Officer and a member of the Board of Directors and Alan Pickerill as Chief Financial Officer, both of which were effective immediately. Chairman of the Board Barry Diller and Vice Chairman Peter Kern were appointed to oversee the company’s executive leadership team until long-term replacements are determined.

Consumer Discretionary Stocks with the Most Momentum

These are the consumer discretionary stocks that had the highest total return over the last 12 months.

Consumer Discretionary Stocks with the Most Momentum






Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
PulteGroup Inc. (PHM) 46.41 12.5 70.5
CarMax Inc. (KMX) 101.21 16.5 64.5
D.R. Horton Inc. (DHI) 61.88 22.7 55.6
S&P 500 (SPY) N/A N/A 18.4
Consumer Discretionary Select Sector SPDR ETF (XLY) N/A N/A 18.9
  • PulteGroup Inc.: PulteGroup is involved in the development and construction of residential properties, as well as the purchase and development of residential land. The company offers mortgage financing, title insurance, and other services to home buyers. PulteGroup announced in late January that it had acquired Innovative Construction Group, an off-site solutions provider focused on wood framed construction for both single family and multifamily dwellings.
  • CarMax Inc.: CarMax is a holding company that operates as a retailer of used vehicles. The company sells used vehicles, purchases used vehicles for customers, sells related products and services, and arranges financing options for customers. Its products and services include retail merchandising, wholesale auctions, extended protection plans, reconditioning and service, and customer credit.
  • D.R. Horton Inc.: D.R. Horton is a national homebuilder engaged in the construction and sale of single-family housing. The company also provides mortgage financing and title agency services to homebuyers.

Source: Investopedia

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