Top Consumer Stocks For September

Apparently, the market does not only go up. After 5 straight weeks of gains, some cracks are appearing in the armour with markets selling off deeply on Thursday last week, and a wild session on Friday that saw a deep decline, followed by a rally, and selloff in the latter part of the day. After a massive rally from the March pandemic lows, markets may be signalling time for a breather. Of course, helping the economic rebound is the amount of jobs gains recently, as on Friday the Labor Department announced that August job gains were in the 1.37 million range, better than the 1.32 million estimate, and the unemployment rate dropped all the way to 8.4% in the last month. That last number was the most impressive, as the expectations were for an unemployment rate around 9.8%. The deep learning algorithms at Q.ai have used Artificial Intelligence (“AI”) technology to identify the Top U.S. Consumer Discretionary stocks for September.

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Aaron’s Inc (AAN)

First on the list as identified by our AI systems is Aaron’s Inc. Aaron’s Inc AAN is rated B in Technical, B in Growth, C in Momentum Volatility and A in Quality Value. Aaron’s Inc is rated Top Buy for September. The company is a retailer of furniture and consumer electronics. They operate retail stores that engage in the lease ownership and retail sale of televisions, computers, tablets, mobile phones, furniture, mattresses, washers, dryers, and refrigerators. The stock is down only 5.2% for the year, even as revenues grew by 3.83% in the last fiscal year to $3947.66M, a growth of 21.13% over the last three years from $3383.71M three years ago. Operating Income grew by 3.0% in the last fiscal year to $385.35M, which compares to $425.65M three years ago. EPS was $0.46 in the last fiscal year, versus $4.06 three years ago. ROE was 1.8% in the last year, which compares to 18.23% three years ago. Forward 12M Revenue is expected to grow by 3.17% and the stock is trading with a Forward 12M P/E of 13.09.

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Advance Auto Parts Inc (AAP)

Next on the Top Consumer Discretionary Stocks this month is Advance Auto Parts Inc AAP , as the stock is down 3.55% for the year so far. Advance Auto Parts Inc is rated D in Technical, B in Growth, B in Momentum Volatility and C in Quality Value. Advance Auto Parts Inc is rated Neutral for September. The company is one of the industry’s largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in North America. Revenue grew by 2.67% over the last three fiscal years to $9709.0M in the last fiscal, which compares to $9373.78M three years ago. Operating Income grew by 20.03% over the last three fiscal years to $756.78M in the last fiscal, which compares to $583.51M three years ago. EPS grew by 1.11% over the last three fiscal years to $6.84 in the last fiscal, compared to $6.42 three years ago. ROE was 13.72% in the last year, which compares to 15.02% three years ago. Forward 12M Revenue is expected to grow by 1.81% and the stock is trading with a Forward 12M P/E of 16.95.

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Amazon.com Inc (AMZN)

Another Top U.S. Consumer Discretionary stock you may recognize on the list this month is Amazon.com Inc AMZN . Amazon.com Inc is rated D in Technical, A in Growth, B in Momentum Volatility and C in Quality Value. Amazon.com Inc is rated Neutral for September. Obviously, this stock has done incredibly well this year and in the past, up 73.58% so far year-to-date. The company is an e-commerce giant with $281 billion in net sales and approximately $365 billion in estimated physical/digital gross merchandise volume (GMV) in 2019. Things have only gotten better in 2020 as more consumers have depended on their delivery services, as they expand other businesses at the same time. Revenue grew by 14.71% in the last fiscal year to $280522.0M, a growth of 80.91% over the last three fiscal years from $177866.0M three years ago. Operating Income grew by 16.16% in the last fiscal year to $14404.0M, a growth of 307.5% over the last three fiscal years from $4106.0M three years ago. EPS grew by 13.15% in the last fiscal year to $23.01, a growth of 323.36% over the last three fiscal years from $6.15 three years ago. ROE was 21.94% in the last year, which compares to 12.91% three years ago. Forward 12M Revenue is expected to grow by 7.25% and the stock is trading with a Forward 12M P/E of 95.26.

MORE FROM FORBESAmazon (AMZN)

Bed Bath & Beyond (BBBY)

Bed Bath & Beyond BBBY is another Top U.S. Consumer Discretionary stock this month, despite the stock losing 28.05% for the week. Bed Bath & Beyond is rated D in Technical, C in Growth, F in Momentum Volatility and F in Quality Value. Bed Bath & Beyond is rated Top Short for September. The company is a home furnishings retailer, operating around 1,500 stores in all 50 states, Puerto Rico, Canada, and Mexico. As for the financials, EPS shrank by -10.57% in the last fiscal year to $(4.94), which compares to $3.04 three years ago. Revenue was $11158.58M in the last fiscal year compared to $12349.3M three years ago. Operating Income was $(55.24)M in the last fiscal year, much worse than the $778.22M three years ago. ROE was (28.38%) in the last year, which compares to 15.15% three years ago. Forward 12M Revenue is expected to grow by 7.97%.

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Best Buy Co Inc (BBY)

Another Top U.S. Consumer Discretionary stock this month according to our deep learning algorithms is Best Buy Co Inc. Best Buy Co Inc BBY is rated C in Technical, C in Growth, C in Momentum Volatility and C in Quality Value. Best Buy Co Inc is rated Neutral for September. The company is one of the largest consumer electronics retailers in the U.S., with product and service sales representing 9.3% of the $450 billion-plus in personal consumer electronics and appliances expenditures in 2019, based on estimates from the U.S. Bureau of Economic Analysis. The stock has done extremely well, recovering all the pandemic losses and more, gaining 21.76% for the year alone. Revenue grew by 3.04% over the last three fiscal years to $43638.0M in the last fiscal, which compares to $42151.0M three years ago. Operating Income grew by 4.87% in the last fiscal year to $2053.0M, a growth of 16.19% over the last three fiscal years from $1853.0M three years ago. EPS grew by 7.54% in the last fiscal year to $5.75, a growth of 89.49% over the last three fiscal years from $3.26 three years ago. ROE was 45.42% in the last year, which compares to 24.01% three years ago. Forward 12M Revenue is expected to grow by 1.48% and the stock is trading with a Forward 12M P/E of 15.08.

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Booking Holdings Inc (BKNG)

Our AI-based systems have also identified Booking Holdings Inc as a Top U.S. Consumer Discretionary stock this month, after the stock has lost 7.56% for the year amid a travel clampdown across the globe. Booking Holdings Inc is rated A in Technical, F in Growth, C in Momentum Volatility and D in Quality Value. Booking Holdings Inc is rated Neutral for September. The company is the world’s largest online travel agency by revenue, offering booking services for hotel and vacation rooms, airline tickets, rental cars, restaurant reservations, cruises, experiences, and other vacation packages. As for the financials, EPS grew by 30.05% over the last three fiscal years to $111.82 in the last fiscal, which compares to $46.86 three years ago. Revenue was $15066.0M in the last fiscal year, which compares to $12681.0M three years ago. Operating Income was $5345.0M in the last fiscal year, compared to $4543.0M three years ago. ROE was 66.11% in the last year, versus 22.21% three years ago. Forward 12M Revenue is expected to grow by 22.66% and the stock is trading with a Forward 12M P/E of 47.34.

MORE FROM FORBESBooking Holdings (BKNG)

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