The most recent jobs report came in this morning and once again, workers are the winners.
The economy added 201,000 new jobs, while the June-July number was revised down by 50,000 to 147,000. All that said, unemployment is still down to levels not seen since the 1960s.
And while wage growth rose as well, it’s still just keeping up with inflation. And most of the jobs that are created are on the lower end of the pay scale. There’s no doubt we’re still shaking off the Great Recession, but things continue to look up.
All this means that consumers are in a better position to spend. And we’ve seen a number of big retailers post some impressive numbers in recent quarters. That’s likely to continue.
That’s why it’s a good time to check out these 7 straight-A consumer stocks to buy, those which are highly-rated by Navellier Ratings. They’re in perfect position right now and have plenty of legs left.
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Consumer Stocks to Buy: MCBC Holdings (MCFT)
MCBC Holdings (NASDAQ:MCFT) is a holding company for two boat building companies. Its line of MasterCraft boats are designed for sports like water skiing, wakeboarding and wake surfing. Its Hydra-Sports lines are focused on recreational fishing boats.
Water-based recreation is a fast-growing segment of the U.S. recreational market. According to Statista.com, there were about $4 billion in recreational boats sold in the U.S. last year.
MCFT is a big player in the industry and its numbers speak for themselves. It just reported its fiscal year and Q4 earnings this week and they were impressive. Q4 sales were up 63% and sales were up 45% for the year. Q4 net income doubled. FY gross profits were up 42%.
Expect this sector to continue this growth, and expect MCFT to be one of the leaders.
Consumer Stocks to Buy: Cal-Maine Foods (CALM)
Cal-Maine Foods (NASDAQ:CALM) is the largest shell egg producer in the U.S. In fiscal 2018, it shipped over 1 billion dozen shell eggs, which is about 20% of the entire U.S. production.
Suffice it to say that pricing is a key consideration in this business. It’s a commodity, just like other agricultural products. But there is a twist. There are different levels of eggs, i.e., organic, free range, cageless, etc. Each different designation comes at a different price point since the birds have to meet certain specifications.
CALM brands its specialty eggs under the names Egg-Land’s Best, Land o’ Lakes, Farmhouse and 4-Grain. As demand for specialty eggs rises, so do CALM’s margins. Also, egg prices were very low for a while because there was a glut in the market. That’s over now and prices are rising quickly, all to CALM’s benefit.
Consumer Stocks to Buy: Callaway Golf (ELY)
Callaway Golf (NYSE:ELY) was founded by Ely Callaway in 1982. His famous line about getting into the business is, “I’m not a good enough salesman to sell a mediocre product.”
His goal was always to make products that not only performed at the elite level but also made the sport more enjoyable for the recreational golfer. Using the latest technologies, his products were built to help players hit longer and straighter as well as to score better.
Since the early days, ELY has been a game-changer in a traditionally buttoned-up sport. Its oversized drivers drew mild shock when they arrived. And now everyone builds them.
ELY hasn’t lost that edge and continues to keeps its reputation as cutting-edge brand. Now it is expanding into clothing lines and travel bags as well. ELY is well positioned for the next generations of golfers.
Consumer Stocks to Buy: Netflix (NFLX)
Netflix (NASDAQ:NFLX) has gone from a disruptor of the video rental age to a disruptor in the streaming age.
It’s not an overstatement to say that without NFLX, video streaming and cable cutting wouldn’t be as mainstream as they are at this point. And while most people were expecting some traditional content providers to be the ones to dominate this space, there’s little doubt now that NFLX is the king of streaming.
By aggressively expanding globally into the content side, NFLX is the one everyone is chasing. Its simple, fee-based subscription model has been a big help. Also, the mobile revolution certainly helped bring along new generations of viewers that get a lot of original and archived content bang for their bucks.
It’s still growing rapidly, and that’s reflected in the stock price’s rise. That will continue for some years to come, but eventually it will slow and NFLX will have to adapt its model. But for now, it has proven that its model is very scalable, which will help as it goes after markets in Asia like India and China.
Consumer Stocks to Buy: World Wrestling Entertainment (WWE)
World Wrestling Entertainment (NYSE:WWE) has a nearly $7 billion market cap and a price-to-earnings ratio of almost 140. That may sound a bit rich for an entertainment enterprise that focuses on live and televised professional wrestling events and merchandise.
But understand that WWE stock is up over 180% year to date and almost 300% in the past 12 months. That kind of run signifies that WWE was on the mat but is in the midst of making an astounding comeback.
There’s another subtle piece to this that is good to know. Founder and CEO Vince McMahon’s wife Linda McMahon, who was also an executive of WWE, became the secretary of the Small Business Administration last year. A cabinet-level position in a presidential administration that’s pro-business is a very good place to be.
The fact is, more money in people’s pockets means more money to go to events and buy merchandise.
Consumer Stocks to Buy: Planet Fitness (PLNT)
Planet Fitness (NASDAQ:PLNT) is the next iteration of subscription-based fitness facilities.
It operates and franchises its new style of fitness membership across the U.S. Basically, there two types of membership.
For $10 a month, you get unlimited access to your “home” Planet Fitness club and can use the equipment seven days a week, 24 hours a day. For $21.99 a month, you get the works. Unlimited hydromassage and massage chairs, discounts on clothes and drinks, reciprocal use of any of the 1500 Planet Fitness clubs around the country and other benefits.
Every member gets free fitness training as well.
The model is working, especially as Gen Xers and millennials start to get a bit older and are giving up their more aggressive sporting activities for more fitness-based ones, but don’t want to spend huge money on a gym.
PLNT stock is up 45% year to date and 102% in the past 12 months.
Source: Hillary via Flickr
Consumer Stocks to Buy: Gravity (GRVY)
Gravity (NASDAQ:GRVY) is a South-Korea-based online gaming company that was established in 2000.
It has three lines of games that have launched over the years in its home market and then expanded across Asia and then globally. It owns Ragnarok, Requiem and Pucca Racing franchises and has done a very good job distributing the properties, given its market cap of $122 million.
Bear in mind, its competition is orders of magnitude larger, yet GRVY has found a way to compete in its niche. That’s an encouraging sign that the bigger players haven’t found a way to destroy this 18-year-old upstart.
It also means that at some point it’s likely one of the bigger players in the sector will make a move for GRVY. And making a quick move means buying it a significant premium since other gaming companies would jump into the fray if it was a low-ball bid.
And until then, GRVY will continue to grow its base around the world.
Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.