Consumer stocks can relate to anything that people consume. This includes stuff such as retail, food, e-commerce, and more. The market for consumer stocks has been down due to the ongoing pandemic occurring. Retail stores closed, many restaurants closed, but e-commerce stocks like Alibaba (BABA Stock Report), and Walmart (WMT Stock Report) rose. So retail stocks have been rather volatile in the stock market in 2020.
Companies able to stay afloat during the current state of the world have seen great benefits from it. Even with reopening going on, many top consumer stocks are still struggling to survive. It seems like as of October, many consumer stocks have been able to increase in the stock price in the last few months. While this sector will not see a great full recovery until the economy does, it has still piqued the interest of many investors. Now let’s take a look at three under-the-radar consumer stocks that are performing well or rebounding in the market.
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First up on this list of consumer stocks to watch is Mattel Inc. (MAT Stock Report). Mattel manufactures toys under many well-known brands. This includes Barbie, Fisher-Price, Hot Wheels, Matchbox, and many more. This makes Mattel Inc. a massive corporation operating some of the most recognizable toy companies in the world. So it is no surprise that MAT stock was affected by the coronavirus pandemic. MAT stock price was at $14 a share on average when 2020 started off. Then from February to March MAT stock fell as low as $7.20 a share on average. MAT stock has not yet been able to recover quite yet. Let’s talk about some recent news from this consumer company.
Mattel reported net sales of $732 million in its second quarter reports, down 15% year over year. Its gross sales were down 15% to $815 million as well.
The CEO and Chairman of Mattel, Ynon Kreiz stated this about the issues, “We entered the second quarter with extensive retail closures and distribution challenges and had to absorb a full quarter of COVID-19 impact, but we demonstrated our execution capabilities and the resilience of our brands. While revenues were down, they exceeded our expectations, particularly in North America, Barbie, and Games, where we saw sales increases. Total company POS improved significantly and was positive in the quarter, and e-commerce continued to grow strongly in all regions.”
It will be interesting to see if MAT stock will be able to make a full recovery. As of October 8th, this consumer stock is at $12.60 a share on average. Due to its potential as an already large corporation, that is why it’s on this list of consumer stocks to watch.Top Consumer Stocks To Watch In October 2020: The Clorox Company
Next up on this list of consumer stocks to watch is The Clorox Company (CLX Stock Report). The Clorox Company is a consumer company that produces health and wellness, household, lifestyle, and international products. Clorox produces laundry additives like bleach, as well as a stain remover and color boosters. In addition to this, Clorox sells many cleaning products. The Clorox Company also owns Kingsford, Match Light, RenewLife, Rainbow Life, Hidden Valley, and many more brands as well. In total, the corporation owns 360 brands. That is why it is such a massive company, and why it is on this list. So let’s look at the company’s recent history.
In the company’s second quarter reports, its sales decreased by 2%. Obviously the pandemic had a negative effect on most companies.
But the CEO of Clorox, Benno Dorer said, “I feel good about the progress we’re making, which is reflected in our second-quarter results, particularly the fifth consecutive quarter of gross margin expansion and sequential improvement in organic sales. We have confidence we’re taking the right steps as we expect to return to growth in the back half of the fiscal year behind strong investments in our robust innovation plans to support distribution. Importantly, we remain committed to strong execution behind our IGNITE strategy to deliver long-term shareholder value.”
Clorox did report a 4% increase in diluted earnings per share. As of October 8th, CLX stock price is at $212 a share on average. At the start of 2020, it was at $152 a share on average. So despite some troubles, CLX stock has been able to perform well throughout 2020. Hence why CLX stock is on this list of consumer stocks to watch.
[Read More] Top Tech Stocks To Watch In Q4 2020Top Consumer Stocks To Watch In October 2020: Hasbro Inc.
The final consumer stock to watch on this list is Hasbro Inc. (HAS Stock Report). Hasbro Inc. primarily produces toys under many popular brands. Some of the company’s popular toy brands include Nerf, My Little Pony, Monopoly, Transformers, and plenty more. Hasbro has been known to make some notable acquisitions as well. Back in August 2019, Hasbro purchased the Canadian entertainment company Entertainment One for $4 billion. But what has Hasbro been up to, and how is it performing in 2020? Well, just like many other consumer stocks the economic crisis did not treat HAS stock very well.
HAS stock is still yet to recover in the market. At the start of 2020 HAS stock price was at $97 a share on average. Then March came around and HAS stock fell as low as $44 a share. As of October 8th, HAS stock price is at $87.96 a share. This doesn’t place it ridiculously far from its former price, but it is still down. Hasbro reported net revenue of $860.3 million vs. $1.2 billion in its second quarter reports, a decrease of 29%. If the economy returns to a normal state, Hasbro’s financials have the potential to perform better. This could directly affect HAS stock price.
The CEO of the company, Brian Goldner said, “The second quarter was much as we expected: strong point of sale for Hasbro brands countered by a very challenging revenue period due to global closures in our supply chain, across retailers as well as in entertainment production.”
The potential for Hasbro is the reason why it is the final company on this list of consumer stocks to watch.