Top consumer stocks that shined in 2021

Highlights

• Lowe's Companies, Inc. (NYSE:LOW) has a P/E ratio of 22.5. Its stock closed at US$258.15 on Dec 9, 2021. The stock gained 61.42% YTD.
• Houghton Mifflin Harcourt Company (NASDAQ:HMHC) provides an integrated solution to engage learners and empower educators. Its stock rose 368.77% YTD.
• Dillard's, Inc. (NYSE:DDS) has a market capitalization of US$5.15 billion and a P/E ratio of 9.17. The stock grew 337.85% YTD.

The consumer sector is vast, comprising consumer staples and consumer discretionary products and services. While the staple stocks are relatively steady, the discretionary stocks and services tend to get affected by external factors. Although the coronavirus pandemic has been a major disruptor of economic activities this year, the personal consumption expenditure on services increased at an annual rate of 12.4% on a seasonally adjusted basis in the third quarter.  

According to an industry estimate, consumer spending will rise 5.8% in 2021 and 5.5% in 2022. While the chip supply shortage is expected to stretch into 2023, the gaming and console market could reach US$81 billion by 2022, an increase of 10% from this year.  

Here we explore seven consumer stocks that saw a robust performance in 2021.

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Lowe's Companies, Inc. (NYSE:LOW)

52-week share price range - US$260.81 to US$150.84

The Mooresville, North Carolina-based Lowe's is a home improvement retailer. It has over 1,973 stores in the US and Canada. It offers home decorating products and maintenance, repair, and remodeling products and services.

For the nine months ended Oct 29, 2021, the company posted net sales of US$74.9 billion compared to US$69.2 billion for the same period in 2020. The net earnings were US$7.2 billion versus US$4.8 billion for the nine months in the previous year. Its earnings per share diluted also increased to US$10.21 from US$6.41 per share diluted in the same period of 2020. 

The company has a market capitalization of US$174.5 billion and a P/E ratio of 22.5.

The stock closed at US$258.15 on Dec 9, 2021.

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Costco Wholesale Corporation (NASDAQ:COST)

52-week share price range - US$560.78 US$307.00

The Washington-based Costco is a warehouse club and has over 828 stores worldwide. Around 7% of its global sales come from e-commerce. About 40% of sales come from food and sundries, 29% from non-food merchandise, 17% and 14% from warehouse ancillary and other businesses and fresh food, respectively.

For the first quarter of fiscal 2022, ended Nov 21, 2021, its revenue came in at US$49.42 billion compared to US$42.35 billion in the previous year. The net income was US$1,324 million, or US$2.98 per share diluted, compared to US$1,166 million, or US$2.62 per share diluted in the same period in 2020.

The company has a market capitalization of US$240 billion and a P/E ratio of 46.72.

The stock closed at US$524.33 on Dec 9, 2021.

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Houghton Mifflin Harcourt Company (NASDAQ:HMHC)

52-week share price range - US$17.93 to US$3.18

The Boston, Massachusetts-headquartered HMHC is a learning company that provides an integrated solution to engage learners and empower educators.

The company has two operating segments: the Education segment and Books & Media segment. It provides textbooks, digital courses, assessment, intervention solutions etc. and sells print & digital content and licenses book rights & electronic businesses. 

For the nine months ended Sept 30, 2021, the net sales of the company were US$872 million compared to US$699 million in the same period of the previous year. The net income was US$262 million against a net loss of US$397 million for the corresponding period of 2020.

The company has a market capitalization of US$2.0 billion and a P/E ratio of 11.77.

The stock closed at US$15.50 on Dec 9, 2021.

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GameStop Corporation (NYSE:GME)

52-week share price range - US$483.00 to US$12.14

The Grapevine, Texas-based retailer provides video games, consumer electronics and services. It sells new and second-hand video game hardware, software, and video game accessories. 

For the nine months ended Sept 30, 2021, its net sales were US$3.75 billion compared to US$2.97 billion for the same period of 2020. The net loss for the period was US$233.8 million against a net loss of US$296 million in nine months ended Sept 30 of 2020.

The company has a market capitalization of US$12.14 billion.

The stock closed at US$155.76 on Dec 9, 2021.

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Dillard's, Inc. (NYSE:DDS)

52-week share price range - US$416.71 to US$49.67

The Little Rock, Arkansas-based Dillard’s is a retailer of fashion apparel, cosmetics, and home furnishing products. It also operates a contracting construction company called CDI Contractors that carries out construction and remodeling work for Dillard’s stores.

Dillard’s posted net sales of US$4.38 billion for the nine months ended Oct 30, 2021, while the net sales were US$2.73 billion for the same period of 2020. Its net income was US$541 million compared to a net loss of US$139 million for the nine months of 2020. The EPS diluted also increased to US$25.76 against US$(6.05) in the corresponding period of 2020.

The company has a market capitalization of US$5.15 billion and a P/E ratio of 9.17.

The stock closed at US$264.62 on Dec 9, 2021.

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Hasbro, Inc. (NASDAQ:HAS)

52-week share price range - US$104.89 to US$86.05

The Pawtucket, Rhode Island-headquartered Hasbro is a play company. The company provides recreation to children and families worldwide through its games, motion pictures, television programming, etc. 

For the nine months ended Sept 26, 2021, the company posted net revenue of US$4.4 billion and net income of US$346.5 million. The revenue and net income in the corresponding period of 2020 were US$3.7 billion and US$117.3 million, respectively.

The company has a market capitalization of US$14.0 billion and a P/E ratio of 31.06.

The stock closed at US$100.41 on Dec 9, 2021.

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Source - pixabay

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Build-A-Bear Workshop, Inc. (NYSE:BBW)

52-week share price range - US$23.34 to US$3.90

The St. Louis, Missouri-based BBW is a specialty retailer of customized stuffed animals and related products. It operates in three segments: direct-to-consumer, international franchising, and commercial. 

For the 39 weeks ended Oct 30, 2021, its revenue and net income were US$281 million and US$23 million, respectively. In the same period of 2020, its revenue and net losses were US$161.6 million and US$33.5 million, respectively.

The company has a market capitalization of US$334 million and a P/E ratio of 10.33.

The stock closed at US$21.31 on Dec 9, 2021.

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Bottomline

The US consumer spending increased more than expected in October. But the rising energy cost might impact the CPI. Investors, however, must carefully analyze the stocks before investing.