Markets have been rallying as of late, and nothing seems to be getting in their way. The pandemic has been ravaging through many countries, as deaths are increasing in the US along with cases, but the Federal Reserve is providing plenty of support on the monetary side as the government provides fiscal stimulus as well. Although there has been some infighting, it does look like another stimulus package will be approved in the coming days or weeks. The consumer has been hit particularly hard during the pandemic, with over 30 million people now out of work in the U.S. alone. However, the side effect of stimulus is that some consumers have more money in their pockets than they would have from their jobs. Our deep learning algorithms have used Artificial Intelligence (“AI”) technology to identify the top trending consumer discretionary and consumer staple stocks below.
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Colgate-Palmolive Co (CL)
The first company on our list is Colgate-Palmolive Co. Our AI system has identified factor scores of B in Technical, C in Growth, A in Momentum Volatility, and B in Quality Value for the stock that is up 12.7% for the year. As far as the financials are concerned, the growth in revenue and operating income has been modest in the past three years. EPS, on the other hand, has seen a steady rise, growing by 8.73% in the last fiscal year to $2.75 and by 31.14% over the last three fiscal years from $2.28. ROE remains consistently high even though it has dropped to 669.4% in the last year from 1672.31% three years ago. The stock is trading with a Forward 12M P/E of 25.53.
Kimberly-Clark Corp (KMB)
Kimberly-Clark Corp, a company that manufactures and markets personal care and consumer tissue products is next on our list of top consumer stocks. Factor scores of B in Technical, B in Growth, B in Momentum Volatility, and B in Quality Value have been assigned to the stock that is already up 15.07% for the year. Financials have been strong with operating income growing by 12.05% in the last fiscal year and by 10.96% over the last three fiscal years. ROE saw a much sharper rise, reaching a level of 2968.92% in the last year compared to 464.26% three years ago. Forward 12M P/E of the stock is 21.14.
Mondelez International Inc (MDLZ)
Mondelez International Inc has been identified as a top consumer stock. The company manufactures, markets, and sells snack food and beverage products worldwide With factor scores of B in Technical, B in Growth, B in Momentum Volatility, and C in Quality Value, the stock is up 2.3% for the year. EPS for the company grew by 26.11% in the last three years from $1.85 to $2.65 in the last fiscal year. ROE also improved from 11.08% to 14.64% during this tenure. The revenue is projected to grow by 1.31% in the next 12 months and the stock trades with a Forward 12M P/E of 21.02.
Procter & Gamble Co (PG)
Procter & Gamble Co
Amazon.com Inc (AMZN)
Amazon.com Inc
McDonald’s Corp (MCD)
McDonald’s Corp
Netflix Inc (NFLX)
Netflix Inc is one of those companies that has benefitted from the lockdown. With scores of B in Technical, A in Growth, A in Momentum Volatility, and C in Quality Value the stock is up 54.53% for the year. Digging into the financials, we see impressive growth rates in its revenues and operating income over the years. Revenue grew by 93.52% and operating income grew by 347.72% in these three years. EPS increased to $4.13 in the last fiscal year compared to $1.25 three years ago. ROE also improved to 29.12% from 17.85% three years ago. Revenue is forecasted to grow by 8.64% in the next 12 months and the Forward 12M P/E of the stock is 67.77.
Tesla Inc (TSLA)
Tesla Inc is the last company on our list that has been given factor scores of A in Technical, B in Growth, C in Momentum Volatility, and C in Quality Value. The stock is up 245.6% for the year. The company has seen its revenue grow by 118.62% over the last three years and this performance is expected to continue with an expected growth rate of 28.24% in the next 12 months. While ROE has been negative, it has shown improvements, reaching (10.75%) in the last year from (38.85%) three years ago. Tesla trades with a Forward 12M P/E of 115.85.
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