Consumer-centric brands often focus, and thrive, off of one thing–the amount of money or time (depending on the business model used) users spend on it. As consumers, we can agree that when we find a brand we like, we stick with it until something changes. This may include skincare, personal finance, or even investing! While there are many such companies out there, what’s important is that we single out companies. We do so based on future viability, current status, and the potential to make great returns for readers. As for our readers, they want to hear about the top stocks to buy, which is where this list comes in handy.
Here are three companies that I believe will offer you a great starting off point.
Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) is one of the world’s most recognizable coffee joints. Starting from a humble store in Pike’s Place Market, in Seattle, this giant is now the world’s third-largest restaurant chain. It is trading at a valuation of $77.95 as of market close on Wednesday, July 31st. Analyst expectations suggest an implied upside of over 10% at this price point.
SBUX has met revenue estimates for the last quarter, which is a positive sign given the fact that it had missed estimates for the two quarters preceding this one. However, revenue and earnings have fallen year-over-year. While this can be attributed to many factors, inflationary pressure and public backlash over the situation in Gaza, and how management handled it, are key concerns.
As inflationary pressures and the conflict subside, I expect a significant uptick in total revenue and a growth in same-store sales. This will likely propel SBUX stock to new heights, making early investors proud. This is definitely a consumer-centric brand to invest in, and one of the top stocks to buy.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is a global technology company known for its e-commerce platform, cloud computing (AWS), Prime membership, consumer electronics (like Kindle and Echo), digital content, logistics and delivery services, and physical stores such as Amazon Go and Whole Foods Market.
AMZN stock is currently trading at $186.98 as of the market close on 07/31/24 with a market cap of $1.94 trillion. The company’s business model is profitable. The stock saw profit and operating margins of 6.38% and 10.68% respectively. The company’s revenue has grown by $60.8 billion over the past year. Furthermore, the company has a year-on-year (YOY) quarterly revenue growth rate of 12.50%. Amazon Prime’s membership base has surpassed 200 million subscribers globally, contributing significantly to revenue growth.
Amazon’s earnings report is due to come out today (08/01/2024), and analysts are predicting sales to reach $148.7 billion, marking a 10.7% increase over the same period last year. A significant focus of this earnings report will be AI, since its central to Amazon Web Services (AWS), Amazon’s cloud computing unit. AWS has been a major growth driver for Amazon, with almost 16% of the company’s revenue coming from AWS. Given these factors, Amazon’s strong fundamentals and growth potential make it a compelling stock to buy.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) formerly known as Facebook, Inc., is a global tech company operating social media platforms like Facebook, Instagram, WhatsApp, and Messenger. It also invests heavily in VR and AR through Oculus and the development of the metaverse for immersive digital experiences.
META stock has been up 3% since yesterday after a positive earnings report and is predicted to rise even more today. The company has reported an earnings per share (EPS) of $5.16, which was 9.3% higher than the consensus estimate of $4.72. The company has seen a YOY quarterly earnings growth rate of 116%, which is impressive considering that revenue only grew by 27% in the same period. Meta has a target price estimate of $523.30, which suggests a growth potential of 10.2% over the next year.
The company has an operating cash flow of $76.36 billion, suggesting that Meta generates substantial cash from its core business operations and that it can invest in growth opportunities or return value to shareholders through dividends or share buyback. Overall, it’s the company’s strong fundamentals and high profitability, which make META stock one of the definite consumer stocks to buy
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Achintya Pasricha did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
