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Recently, Japanese banking behemoth Mizuho hoisted the sails of optimism for consumer stocks, aligning with the winds of my own bullish sentiment in the sector. The bank’s melody sang harmoniously with the chorus of “healthy employment and real wage growth,” setting the stage for a virtuoso performance by consumer-driven stocks. Indeed, the crescendo of U.S. retail sales in February hit a harmonious crescendo, climbing 0.6% month-over-month and soaring to $700 billion, an impressive 2.1% uptick compared to the previous February. The symphony of consumer spending is reaching a fever pitch, with the forecasted interest rate decline poised to serenade consumers, making autos and houses more alluringly affordable. This peppy rhythm should free up a crescendo of funds for other ventures. Here are three consumer stocks that strike a chord.
The Roadster Maven: O’Reilly Automotive (ORLY)
Auto parts virtuoso O’Reilly Automotive (NASDAQ:ORLY) is riding high on the surging wave of aging American vehicles, a trend that shows no sign of hitting the brakes soon. With new vehicles sporting jaw-dropping price tags, the orchestra of ORLY’s top and bottom lines jubilantly conducted a 5% year-over-year revenue surge to $3.8 billion last quarter. Meanwhile, its earnings per share joyfully soared 11% year-over-year to $9.26. Notably, the maestros at Mizuho tipped their hat to ORLY, featuring it among their “Buy” rated stocks in the consumer realm.
The E-commerce Virtuoso: Amazon (AMZN)
Amazon (NASDAQ:AMZN) orchestrated a crescendo of applause when pharmaceutical giant Eli Lilly (NYSE:LLY) chose to unlock the pharmacy door with them. This harmonious duet beckons a bright future, as Amazon’s prowess in slashing unnecessary costs and bypassing middlemen promises an opus of affordable drug prices for consumers. The stage is set for Amazon to seize the high notes in the pharmacy space, as signaled by February’s 7.7% leap in revenue for non-store retailers, a domain where AMZN reigns supreme. With these symphonic catalysts, Amazon sweetly sings as one of the top consumer stocks to consider.
The Streaming Sorcerer: Netflix (NFLX)
Netflix (NASDAQ:NFLX) weaves an enchanting spell as the undisputed sovereign of the streaming realm. The stage is awash with adoration from Street analysts, with investment banks like Evercore and Oppenheimer singing its praises. Evercore’s composition on March 13 prophesied an influx of new patrons in America and beyond, applauding NFLX’s ad tier and visionary schemes to monetize shared accounts. Meanwhile, Oppenheimer’s ballad foretells a rise in average revenue per customer, as NFLX harmonizes a strategy to thwart freeloaders and beckon users to lucrative ad tiers. With a crescendo of support from analysts serenading NFLX, the streaming maestro is poised to hit all the right notes in the market orchestra.
On the date of publication, Larry Ramer held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer, a seasoned financial maestro with a forte in U.S. stocks, has composed symphonies of research and articles for 15 years. From his days at The Fly to his performance at Israel’s premier financial tabloid, Globes, Larry has been hitting all the right notes since stepping onto the financial stage. Among his many acclaimed solos are his contrarian picks on SMCI, INTC, and MGM. You can catch his performance on Stocktwits at @larryramer.
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