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Highlights
- Goods and services that are non-essential to customers are known as consumer discretionary
- The S&P/ASX 200 Consumer Discretionary index has lost 23.11% on a year-to-date basis
- Earlier this month, ATA completed the acquisition of Hayes Information Systems, further bolstering its position in the enterprise content management (ECM) segment
Consumer discretionary are non-essential needs (goods and services) of consumers. However, they might be desirable if incomes of consumers are sufficient to buy them. Consumer discretionary stocks are highly volatile and are mostly dependent on change in economic cycles.
The sector has two segments:
Manufacturing: Household durable goods, automotive, leisure equipment, textiles and apparel.
Services: hotels, restaurants and other leisure facilities, consumer retailing and services and media production and services
The S&P/ASX 200 Consumer Discretionary index is down 23.11% on a year-to-date basis. Let us look at the four stocks from the ASX that are performing well despite the plummeting index.
Data source: EODHD/Others as of 29 June 2022
MyDeal.com.au Limited (ASX:MYD)
MyDeal is an online retail marketplace. Focusing on home and lifestyle goods, the platform has currently more than 1,911 sellers. The company’s YTD performance is up nearly 29.6%.
Recently, MyDeal entered into a binding Scheme Implementation Agreement (SIA) with Woolworths Group Limited (ASX:WOW). On the accomplishment of the agreement, 80.2% of the shares outstanding in MyDeal will be owned by Woolworths Group.
Brisbane Broncos Limited (ASX:BBL)
A sporting franchise company, Brisbane Broncos, is one of the most popular sporting brands of the country. It is involved in managing and operating Brisbane Broncos Rugby League Football teams. On a YTD basis, BBL shares have gained about 20%.
In the fiscal year FY21 ended 31 December 2021, BBL reported:
- A net profit after tax of AU$2,897,260 versus a net loss after tax of AU$376,227 in 2020.
- Earnings Before Interest, Tax and Depreciation (EBITDA) surged from AU$693,160 in 2020 to AU$5,473,440 in 2021.
Atturra Limited (ASX:ATA)
Atturra offers IT services, solutions, and different types of enterprise advisory consulting services to a diversified industry and sector. Shares of the company have rallied about 15.8% on a YTD basis.
Earlier this month, ATA acquired Hayes Information Systems and Communications Pty Ltd. The acquisition was accomplished through ATA’s subsidiary, Anatas Pty Ltd. The acquisition strengthens Atturra’s position in the enterprise content management (ECM) segment.
