Top S&P 500 consumer discretionary stocks to explore

Highlights

• Amazon.com, Inc (NASDAQ:AMZN) net sales increased by 9% YoY in Q4, FY21.
  
  
• Home Depot, Inc. (NYSE:HD) stock returned over 30% gains in the past 12 months.
  
  
• Lowe's Companies, Inc. (NYSE:LOW) expects sales to be between US$94 billion and US$97 billion in fiscal 2022.

Consumer discretionary stocks are in the spotlight as the apparel, home improvement, and other consumer durable goods segment has seen increased consumer spending lately. Amazon.com, Inc's fourth-quarter solid results have further energized the sector.

Here we explore the top S&P 500 consumer discretionary stocks.

Also Read: Is Meta Platforms’ (FB) US$250-bn loss biggest wipeout in US history?

Amazon.com, Inc. (NASDAQ:AMZN)

Price close on February 3, 2022: US$2776.91

Market Cap: US$1.62 trillion

One year return: -17.16%

Amazon is one of the world’s leading e-commerce companies. It also provides cloud computing, digital streaming, and other related services. It is based in Seattle, Washington.

The company's net sales rose 9% YoY to US$137.4 billion in Q4, FY21, while its net income came in at US$14.3 billion, or US$27.75 per diluted share. For fiscal 2021, the company's net sales surged 22% YoY to US$469.8 billion.

Its P/E ratio is 49.35, the forward P/E for one year is 56.27, and the EPS is US$64.78.

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Source: Pixabay

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Tesla, Inc. (NASDAQ:TSLA)

Price close on February 3, 2022: US$891.14

Market Cap: US$928.83 billion

One year return: 4.57%

Tesla is among the leading electric vehicle manufacturers based in Austin, Texas. It also has interests in clean energy battery technology.

In the fourth quarter of fiscal 2021, the company's total revenue rose 65% YoY to US$17.71 billion, while its GAAP net income came in at US$2.32 billion, or US$2.05 per diluted share. For fiscal 2021, the company's revenue jumped 71% YoY to US$53.82 billion.

Its P/E ratio is 188.75, the forward P/E for one year is 125.16, and the EPS is US$4.90.

Also Read: Top 10 Nasdaq semiconductor stocks to explore

Home Depot, Inc. (NYSE:HD)

Price close on February 3, 2022: US$364.81

Market Cap: US$375.47 billion

One year return: 30.82%

Home Depot is an Atlanta, Georgia-based home improvement retail firm. It offers customers a range of products like household power tools, appliances, etc.

In the third quarter of fiscal 2021, the company reported sales of US$36.8 billion, an increase of 9.8% YoY. Its net earnings came in at US$4.12 billion, or US$3.92 per diluted share.

Its P/E ratio is 24.04, the forward P/E for one year is 23.58, the dividend yield is 1.77%, and the annualized dividend is US$6.60.

Also Read: Top 50 stocks on S&P 500 index (Part I)

Nike, Inc. (NYSE:NKE)

Price close on February 3, 2022: US$145.31

Market Cap: US$229.98 billion

One year return: 0.14%

Nike is a Beaverton, Oregon-based company that designs and manufacturers footwear, apparel, and other related products.

The company's revenue ticked up 1% YoY to US$11.35 billion for the quarter ended November 30, 2021, while its net income came in at US$1.33 billion, or US$0.83 per diluted share.

Its P/E ratio is 38.07, the forward P/E for one year is 39.38, the dividend yield is 0.82%, and the annualized dividend is US$1.22.

Also Read: Top 50 stocks on S&P 500 Index (Part II)

McDonald's Corporation (NYSE:MCD)

Price close on February 3, 2022: US$260.64

Market Cap: US$194.76 billion

One year return: 22.61%

McDonald's is a fast-food company that operates and franchises restaurants. It is based in Chicago, Illinois, and works in various global markets.

In the fourth quarter of fiscal 2021, the company reported revenue of US$6.00 billion, up 13% YoY, while its net income came in at US$1.63 billion, or US$2.18 per diluted share. For fiscal 2021, the company's total revenue soared 21% YoY to US$23.22 billion.

Its P/E ratio is 25.96, the forward P/E for one year is 25.58, the dividend yield is 2.1%, and the annualized dividend is US$5.52.

Also Read: Top 30 stocks on Dow Jones (Part 1)

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

Price close on February 3, 2022: US$234.11

Market Cap: US$154.91 billion

One year return: 33.75%

Lowe's is a retail company based in Mooresville, North Carolina. It sells home improvement products.

In the third quarter of fiscal 2021, the company reported total sales of US$22.9 billion, while its net earnings came in at US$1.9 billion, or US$2.73 per diluted share.

For fiscal 2021, the company expects total sales of around US$95 billion. In fiscal 2022, the company anticipates sales in the range of US$94 billion to US$97 billion.

Its P/E ratio is 19.98, the forward P/E for one year is 19.59, the dividend yield is 1.34%, and the annualized dividend is US$3.20.

Starbucks Corporation (NASDAQ:SBUX)

Price close on February 3, 2022: US$95.94

Market Cap: US$109.95 billion

One year return: -9.9%

Starbucks is a coffeehouse company and operates coffeehouses and roastery reserves. It is based in Seattle, Washington.

In the first quarter of fiscal 2022, the company reported revenue of US$8.05 billion, up 19% YoY, while its attributable net income was US$815.9 million, or US$0.69 per diluted share.

Its P/E ratio is 25.77, the forward P/E for one year is 28.64, the dividend yield is 2.01%, and the annualized dividend is US$1.96.

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Bottomline

The S&P 500 consumer discretionary sector rose around 23% in 2021 but declined 12.84% YTD. However, investors should carefully evaluate the companies before investing in stocks.