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  • Three Top Consumer Stocks for long-term Investment

    Three Top Consumer Stocks for long-term Investment

    Let’s see the best possible investment options in the consumer market during the pandemic crisis.

    The consumer market has been a bit shaky in most of the sectors due to uneconomical circumstances amid the COVID-19 pandemic. Still, many of the consumer stocks have performed remarkably well.

    Among the consumer stocks, there are two most prominent segments including consumer discretionary business and consumer staples. Both of these consumer segments have their pros and cons.

    As we move ahead into 2021, investors would be keen on what stocks they’re putting in their shopping carts. Consumer stocks are usually slow growth stocks and investors with the Buffet mindset are the perfect match for the long-term investment—in consumer stocks. So, let’s have a look at the three top consumer stocks for investment in the long-term.

    Qurate Retail (QRTEA)

    Qurate Retail (QRTEA) is an e-commerce service provider. The company partners with TV networks and e-commerce sites, mobile applications, social media, and similar outlets to provide video and digital commerce services worldwide.

    In the last quarterly reports, the company came up with strong and promising results. Qurate generated net retail revenue of $3.4 billion, jumping by 10% year-over-year. While the online sales grew 15% to $2.1 billion, which were almost 62% of the total revenue. The diluted earnings were $0.80per share.

    Moreover, the company delivered special dividends to its shareholders. The cash dividend of $1.50 per share was distributed on Sep. 14, 2020. Qurate also issued the newly preferred stock dividend of $3.00 per share. Following that, the company’s QVC has issued$500 million of 4.375% senior notes due 2028, and the proceeds will be used to tender for outstanding $500 million 5.125% senior notes due 2022.

    Looking into the long-term, Qurate Retail (QRTEA) can be a solid bet. The company will be taking part in the Morgan Stanley Technology, Media, and Telecom Conference on Monday, March 1st. So, keep an eye on that event, there might be some exciting news coming.

    Altria Group (MO)

    One of the largest producers and markers of tobacco, Altria Group (MO) is one of the promising long-term bets in the consumer segment. For this year, the company has plans of investment to expand the availability and awareness of Altria’s non-combustible products.

    Based on different investments in 2021, the company has updated the outlook for this year. The company has reaffirmed its full-year guidance and expects the adjusted diluted earnings to be between $4.49 to $4.62 per share, which means a growth of 3% to 6% compared to that in 2020. Altria Group (MO) is working on some key projects and anticipates 2021 to be a good year. So, MO is one of the potential investment options from the consumer segment.

    General Mills (GIS)

    General Mills (GIS) is well-positioned to move forward and has some solid plans to make things look good for the company.

    During the first fiscal quarter of 2021, the demand for at-home food was on a rise. The company expects the demand to increase in the current and upcoming quarters, as the situations unfold. The CFO of General Mills, Kofi Bruce on Yahoo Finance Live told they are expecting high demand for the next quarter. He stated:

    “We are continuing to make investments in capabilities that will help us when we come out on the other side of COVID. So higher operating costs, but offset by higher leverage as we’re getting a lot more operating leverage out of our assets. We certainly feel confident that demand will remain elevated for at least the next quarter.”

    General Mills (GIS) has been one of the top-performing stocks in 2020 and seems to continue the bullish run this year.

  • Is pandemic favoring the Internet Retail Sector?

    New retail data showed that e-commerce continues to be the most popular form of purchase by consumers. Those statistics triggered a rally on Wednesday for shares of e-commerce companies.

    According to a US Census Bureau report, e-commerce purchases were up 29% in November compared to the same period of the previous year. Retail Metrics analyst Ken Perkins said it represented the biggest monthly increase for e-commerce since 2010 and was the seventh consecutive month of growth exceeding 20%. Shopify Inc. has risen as much as 8.4%, while eBay has risen by 5.4%. Etsy Inc. and Amazon.com Inc. both had gains of at least 2%.

    Perkins wrote in a report that e-commerce is still “dominant in the retail landscape.” He stated that the Centers for Disease Control and Prevention’s recommendation to avoid enclosed shopping areas and the record number of deaths related to Covid-19 have “driven consumers to use contactless payments in record amounts.”

    Jumia Technologies AG (NYSE:JMIA) shares were trading up 8.27% at $39.29 at the time of writing on Wednesday. The company on December 3, 2020 declared the completion of its At The Market offering.

    Jumia Technologies AG (NYSE:JMIA) share price went from a low point around $2.15 to briefly over $40.90 in the past 52 weeks, though shares have since pulled back to $39.29. JMIA market cap has remained high, hitting $3.16B at the time of writing, giving it price-to-sales ratio of more than 10.

    If we look at the recent analyst rating JMIA, Stifel downgraded coverage on JMIA shares with a Hold rating and a $16.71 price target, which implies room for -22.58% downside momentum this year.

    Alibaba Group Holding Limited (BABA) last closed at $261.89, in a 52-week range of $169.95 to $319.32. Analysts have a consensus price target of $338.48.

    eBay Inc. (EBAY) stock soar by 3.01% to $53.65. On December 8, 2020, the company announced that it is introducing a low cost way for sellers to securely ship trading cards. The most recent rating by Piper Sandler, on September 25, 2020, is at an Overweight.

    JD.com Inc. (NASDAQ:JD) Shares headed rising, higher as much as 2.86%. The most recent rating by Barclays, on August 24, 2020, is at an Overweight.

    Vipshop Holdings Limited (NYSE:VIPS) fall -1.16% after losing more than -$0.29 on Wednesday.

    Farfetch Limited (FTCH) last closed at $60.91, in a 52-week range of $5.99 to $61.65. Analysts have a consensus price target of $54.56.

    Chewy Inc. (CHWY) stock soar by 3.28% to $94.12. The most recent rating by Piper Sandler, on November 13, 2020, is at an Overweight. The firm on December 9, 2020 released its financial results for the third quarter of fiscal year 2020 ended November 1, 2020.

    Overstock.com Inc. (NASDAQ:OSTK) Shares headed rising, higher as much as 5.09%. The company declared on December 14, 2020, that it was recently recognized in the seventh annual Loyalty360 Awards for its innovation in technology and for its employee engagement with customers and with associates throughout the company. The most recent rating by Wedbush, on September 16, 2020, is at an Outperform.

    Amazon.com Inc. (NASDAQ:AMZN) rose 2.40% after gaining more than $75.84 on Wednesday. The company today reported that it’s here to help make buying – and returning – even more stress-free and convenient as possible this holiday season.

    Etsy Inc. (ETSY) last closed at $182.34, in a 52-week range of $29.95 to $179.93. Analysts have a consensus price target of $163.29.

    Pinduoduo Inc. (PDD) stock soar by 2.42% to $145.47. On December 15, 2020, the firm reported that it was named a pioneer in digital agriculture at a major conference, with its “cloud agriculture” model recognized as one of the top 10 achievements in digital agriculture in the world. The most recent rating by Nomura, on November 16, 2020, is at a Buy.

    CarParts.com Inc. (NASDAQ:PRTS) Shares headed falling, lower as much as -4.44%. The company recently announced that CEO Lev Peker and CFO/COO David Meniane have been named silver medal winners in the Executive of the Year and Operations Executive of the Year for mid-sized companies categories in the Best in Biz Awards. The most recent rating by ROTH Capital, on September 09, 2020, is at a Buy.

    Dada Nexus Limited (NASDAQ:DADA) rose 4.02% after gaining more than $1.49 on Wednesday. DADA recently announced the launch of “Warm Winter Plan” across China to ensure delivery riders’ safety and health during the winter season.

    Mercurity Fintech Holding Inc. (MFH) last closed at $3.05, in a 52-week range of $1.00 to $5.20. The company on November 27, 2020 declared its unaudited financial results for the third quarter ended September 30, 2020.

    Qurate Retail Inc. (QRTEA) stock soar by 1.35% to $10.52. The company on November 20, 2020 declared special cash dividend of $1.50 per common share and announced commencement of share buyback program. The most recent rating by Citigroup, on December 15, 2020, is at a Neutral.