Stocks are surging on Friday thanks to a better-than-expected non-farm payrolls report for July. As you’ve probably heard, 255,000 jobs were created vs. the 185,000 expected, blowing out the top estimate of 215,000. The unemployment rate held at 4.9% as well.
While this increases the odds of a Federal Reserve interest rate hikes in September, it’s also alleviated concerns about the health of the U.S. consumer.
No surprise then that this is fantastic news for a number of beleaguered consumer-focused stocks that look ready for a nice, oversold rebound rally.
Here are three to watch.
Consumer Stocks to Buy: GoPro Inc (GPRO)
GoPro Inc (NASDAQ:GPRO) is nudging up against its 200-day moving average for the first time since last summer as the recent product misfire with the HERO Session camera — and the price cuts and inventory write-downs associated with it — are largely behind the company.
Investors are now looking ahead to the coming launch of the HERO5 camera and the Karma drone.
The company will next report results on Oct. 27 after the close. Analysts are looking for a loss of 37 cents per share on revenues of $306 million.
Consumer Stocks to Buy: Fitbit Inc (FIT)
Wearables maker Fitbit Inc (NYSE:FIT) has languished in a long sideways consolidation range since February, but could be revving up for a possible breakout attempt thanks to some well received product introductions.
The company reported a top- and bottom-line beat on Q2 results on Aug. 2 with earnings of 12 cents per share on a 46.5% jump in revenues to $587 million.
The company will next report results on Nov. 2 after the close. Analysts are looking for earnings of 19 cents per share on revenues of $502 million.
Consumer Stocks to Buy: Fossil Group Inc (FOSL)
Fossil Group Inc (NASDAQ:FOSL) shares have been a disaster zone since 2013, losing 81% of their value as its business model was challenged by the rise of wearables and smartwatches.
But after recent success with its Skagen division (fashionable, euro-style watches) and the launch of a line of wearables, shares could be ready for a rally in anticipation of a strong holiday season performance.
The company will report results on Aug. 9 after the close. Analysts are looking for earnings of eight cents per share on revenues of $671 million.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.