3 Consumer Centric Stocks That Could Rise Sharply in December
The trend of rising earnings estimate revisions is very compelling for several consumer-centric stocks with now looking like an ideal time to buy.
Appearing to receive a boost from the busy holiday shopping season, here are three of these stocks that investors and traders may want to consider in December.
GIII Apparel Group GIII: One of the hottest consumer staples stocks in 2023 has been GIII Apparel Group which is a New York-based manufacturer, designer, and distributor of apparel and accessories under licensed brands.
With operations geared toward a broad range of popular women’s clothing items, GIII shares have skyrocketed +140% in 2023 as annual earnings are now forecasted to climb 33% to $3.79 per share versus $2.85 a share last year. Plus, earnings are expected to rise another 1% next year and EPS estimates for both FY23 and FY24 have remained noticeably higher over the last 60 days. More reassuring is that despite this year’s impeccable rally, GIII Apparel’s stock still trades at 8.3X forward earnings and at a very intriguing discount to the S&P 500’s 21.5X and the Zacks Textile-Apparel Industry’s 15.8X.
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GameStop GME: For traders, GameStop’s stock will certainly be one to keep an eye on over the next few weeks. The stock market phenomenon back in 2021 sent GameStop’s stock soaring to insane all-time highs of over $483 a share as an organized group of retail investors continued to buy GME shares while short sellers including hedge funds scrambled to cover their losses.
Fast forward to 2023, and GameStop’s 4-1 stock split last year is making more sense as the company strives to provide flexibility for future corporate needs and make shares more accessible to retail investors again. In an attempt to innovate and transform its business, GameStop Reboot has been a plan to use Microsoft’s MSFT Azure cloud to enhance in-store engagement with customers while using blockchain technology to create an integrated ecosystem where players can move their assets across games.
With its stock currently at $15 a share, GameStop is not turning a profit but has seen positive earnings estimate revisions over the last quarter that show it is on the cusp of doing so and a holiday push could get investors and traders very interested again.
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JAKKS Pacific JAKK: Rounding out the list the trend of upward EPS revisions has been very compelling for JAKKS Pacific which is a multi-brand company that markets a broad range of toys and consumer products including dolls, action figures, and play sets among others.
JAKKS Pacific’s stock is up +81% in 2023 and has now soared over +500% in the last three years as the company’s road to profitability took off. Fiscal 2023 earnings are projected to be up 21% to $5.17 per share compared to $4.28 a share last year. While FY24 EPS is expected to dip -12%, projections of $4.53 per share would still represent remarkable growth over the last five years with earnings at an adjusted loss of -$1.72 a share in 2020. Even better, FY23 EPS estimates have soared 37% in the last 60 days and FY24 estimates have climbed 26%.
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Takeaway
In correlation with the very appealing trend of rising earnings estimates, GIII Apparel Group, GameStop, and JAAKS Pacific’s stock all land a Zacks Rank #1 (Strong Buy). This is a great sign that these consumer-focused companies could see their stocks rise as we progress through December and round out this year’s holiday shopping season.
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Original: MSFT Feed: 3 Consumer Centric Stocks That Could Rise Sharply in December