7 Consumer Stocks Ready to Rally Hard

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consumer stocks - 7 Consumer Stocks Ready to Rally Hard

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U.S. equities continue to tread water as investors contend with a cross current of catalysts. From worries about the inter-bank lending market to the ongoing threat of war with Iran, concerns are being offset by the continued strength of the U.S. job market and recent interest rate cuts by the Federal Reserve.

Given this dynamic, it’s not surprising that the bulls are thus focusing on consumer stocks heading into the pivotal holiday shopping season. The Consumer Discretionary Select Sector SPDR Fund (XLY) is bouncing nicely off of its 50-day moving average and looks set for a challenge of double-top resistance.

Here are seven key consumer stocks that are pushing higher:

Target (TGT)

Image previewTarget (NYSE:TGT) shares are on the verge of pushing to new highs, threatening to break above the $110-a-share level. Last week, management announced a new $5 billion share repurchase program. This led to positive analyst comments from Credit Suisse this morning.

The company will next report results on Nov. 20 before the bell. Analysts are looking for earnings of $1.18 per share on revenues of $18.5 billion.

Nike (NKE)

Image previewNike (NYSE:NKE) shares are continuing to contend with triple-top resistance from a trading range going back to March. Watch for an upside breakout here as Needham analysts were recently out with a positive report after conducting a data analysis of some 4,500 Nike products sold online. Their findings were that pricing power remains strong which will bolster margins.

Nike will next report results on Sept. 24 after the close. Analysts are looking for earnings of 71 cents per share on revenues of $10.4 billion.

Phillip Morris (PM)

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Cigarette maker Philip Morris International (NYSE:PM) is set to benefit from the Trump Administration’s decision to explore the outlawing of non-tobacco flavor vaping liquid after the rise of scores of lung problems in users. Not only will this limit market availability, but it casts a cloud of risk and uncertainty across the industry — with many turning thus to traditional cigarettes to fill their nicotine needs.

VFCorp (VFC)

Image previewVFCorp (NYSE:VFC), maker of apparel brands including The North Face and Vans among others, will next report results on Oct. 18 before the bell.

Analysts are looking for earnings of $1.30 per share on revenues of $3.4 billion. Pivotal Research Group analysts recently raised their price target to $90 per share on better results for Vans.

Ulta Beauty (ULTA)

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Shares of Ulta Beauty (NASDAQ:ULTA) gain of roughly 30% from here. This would mark a recovery from a big post-earnings decline after the company lowered its full-year earnings guidance.

The company will next report results on Dec. 5 after the close. Analysts are looking for earnings of $2.20 per share on revenues of $1.7 billion.

Advance Auto Parts (AAP)

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Shares of Advance Auto Parts (NYSE:AAP) are pushing up and over their 200-day moving average, setting the stage for a return to the prior highs seen in April and May. Watch for another challenge of the upper end of its two-year consolidation range with a return to the $180-a-share level, which would be worth a gain of some 13% from here.

AAP will next report results on Nov. 12 before the bell. Analysts are looking for earnings of $2.06 per share on revenues of $2.3 billion.

Amazon (AMZN)

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We couldn’t have a list of consumer stocks without mentioning Amazon (NASDAQ:AMZN), the king daddy of all retailers, which looks ready for another share price bounce off of its 200-day moving average. The company looks set to once again dominate the holiday shopping season with its popular line of smart devices and Prime deals.

Amazon will next report results on Oct. 24 after the close. Analysts are looking for earnings of $4.50 per share on revenues of $68.7 billion.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/09/7-consumer-stocks-ready-to-rally-hard/.

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