4 trending stocks for the month of April

0


Here in the middle of the month, it might be worthwhile to stop and take a look at the ticker symbols that traders talk about more than others. Sometimes a story is brewing and other times it has already happened. If a business is driving the market, it’s just smart to know. After all, opportunities present themselves to investors willing to find them.

With that as a backdrop, here’s a look at the four consumer stocks people talk about the most. That doesn’t necessarily make them a buy or a sale, but it doesn’t mean they aren’t one of those two things, either.

Image source: Getty Images.

1. Restaurants Darden

Closures meant to curb the COVID-19 pandemic have been tough on most businesses, but it can be argued that no industry has suffered as much as the restaurant business. Drive-thru and deliveries just weren’t enough. The National Restaurant Association estimates that last year’s restaurant revenues in the United States were a disappointing $ 659 billion, down $ 240 billion from the industry’s initial forecast last year.

There is a light at the end of the tunnel, however, now that vaccines are more widely available. And while this is good news for all restaurant names, investors are particularly excited about the positive effect this rebound could have on Darden Restaurants (NYSE: DRI), parent of popular chains like Olive Garden, Cheddar’s and Longhorn, to name a few.

It makes sense. Casual so-called ‘sit-down’ restaurants were banned or severely restricted when the coronavirus contagion was at its worst, but drive-thru fast food chains were considerably more accessible. Now, having not been able to comfortably enjoy a good meal served for many months for the sake of coronavirus, consumers are ready for it. A recent survey carried out by Groupon says trying a new restaurant is second after kissing friends and family on consumer agendas once COVID-19 is placed in the rearview mirror.

2.fuboTV

Streaming cable TV company shares fuboTV (NYSE: FUBO) boomed higher in the latter part of last year, but it’s only been down, down, down so far in 2021. The stock’s recent new multi-month low is nearly 70% below its December high, and against the backdrop of further investor announcements, fuboTV shares look poised to drop even lower. Maybe they will.

Don’t read too much rhetoric, however. Virtual cable is a much more marketable and affordable alternative to traditional cable TV, and fubo has the growth in subscriber numbers to prove it. At the end of last year, it served 548,000 customers, nearly doubling its headcount compared to just a few quarters earlier.

Oddly enough, although stock prices continue to decline while analysts’ price targets have not wavered. They always say that this stock is worth around $ 45 per share, which is more than double the current value of the stock.

3. GameStop

It is not just a historical stock. GameStop (NYSE: GME) is the kid of the proverbial poster for the meme inventory mania that is making headlines this year. Shares climbed in January as part of a short coordinated tightening put in place by a handful of hedge funds betting against the video game retailer, only to lose most of that gain in ground days later. While not as volatile as it was back then, this name remains a pawn in the war between a few big bears and lots of little bulls.

The story is changing, however. Activist investor Ryan Cohen is poised to become the next president of the company, and GameStop announced on Monday that current CEO George Sherman will step down on July 31, or sooner if the company finds a replacement as soon as possible. deadlines. No candidate has yet been nominated, but a new approach is already being felt. Cohen says he would like to see the retailer rely less on physical activities and move into what some describe as “the Amazon of gaming.”

The move could be a much-needed change for the struggling company, although it remains to be seen whether the world needs this type of video game middleman.

4. AMC Entertainment

Finally, another major meme stock name from the start of the year – AMC Entertainment (NYSE: AMC) – always has the traders in a tizzy.

Like restaurants, the coronavirus pandemic has been particularly hard on cinemas. Studios withheld films from distributors who were not allowed to run at full capacity (although they were allowed to open at all). AMC’s revenue fell 77% last year, resulting in a net loss of $ 4.6 billion. Adjusted EBITDA and adjusted cash flow were both negative to the tune of $ 1 billion, pushing the company to the brink of bankruptcy. Without the brief pressure in January, stocks could easily have continued their march into record territory this year.

Maybe these buyers are on to something, though.

With COVID-19 vaccines now widely distributed and all of AMC Entertainment’s sites open for business – even if they are at limited capacity – the path to a full recovery is in sight.

Macquarie analyst Chad Beynon estimates that the US theater sector could rebound to more than 90% of its 2019 levels for the foreseeable future, and Warner recently published Godzilla vs. Kong generated an impressive $ 339 million in worldwide box office ticket sales in just a few weeks, according to Box Office Mojo figures. They are both encouraging signs that the film industry is far from dead, although investors should still be prepared for a lot of volatility.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.



Source link

Leave A Reply

Your email address will not be published.