Expedia, Monster, Tyson Lead Consumer Sector Weekly Gains
Last week, consumer discretionary stocks outperformed staples as investors awaited the release of Tuesday’s inflation data. Among the top performers in the sector were Expedia, Monster Beverage, and Tyson Foods, which rallied on strong Q2 earnings and outlook hikes. As a result, the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 3.6%, its best performance since October 2023, while the Consumer Staples Select Sector SPDR Fund (XLP) rose 2.9%, its best showing in over nine months.
Expedia: Strong Earnings and Outlook Boost Shares
Expedia Group Inc. (EXPE) was one of the biggest winners in the consumer discretionary sector last week, with its shares surging 9.7% after the company reported strong Q2 earnings and raised its full-year outlook. The online travel booking platform reported a 22% year-over-year increase in revenue, driven by a 25% growth in bookings. Expedia also saw a significant increase in its gross book value, which measures the value of travel bookings, up 24% from the same period last year.
The company’s Q2 earnings per share (EPS) of $1.15 beat Wall Street estimates of $0.96, and its guidance for the full year 2023 was also higher than expected. Expedia’s management attributed the strong performance to its efforts to improve the user experience, increase its presence in the Asia-Pacific region, and expand its offerings in the corporate travel segment.
Monster Beverage: Robust Sales and Earnings Drive Gains
Monster Beverage Corporation (MNST) was another consumer discretionary stock that rallied last week, with its shares rising 9.6% after the company reported strong Q2 earnings and sales. The company’s revenue increased 12.4% year-over-year, driven by a 14.1% growth in its Monster Energy brand. Monster’s EPS of $0.44 also beat analyst estimates of $0.38.
Monster’s strong performance was attributed to its ability to increase its market share in the energy drink segment, as well as its efforts to expand its presence in new markets and product categories. The company’s management also highlighted the success of its strategic partnerships and its focus on innovation and product development.
Tyson Foods: Six-Day Winning Streak Extended
Tyson Foods, Inc. (TSN) was another consumer discretionary stock that extended its winning streak last week, with its shares rising 8.6% after the company reported strong Q2 earnings and boosted its sales growth guidance. Tyson’s revenue increased 6.4% year-over-year, driven by a 7.3% growth in its beef and pork segments. The company’s EPS of $1.83 also beat Wall Street estimates of $1.68.
Tyson’s strong performance was attributed to its ability to increase its market share in the poultry and beef segments, as well as its efforts to expand its presence in the international market. The company’s management also highlighted the success of its strategic partnerships and its focus on innovation and product development.
Consumer Discretionary Sector Outperforms Consumer Staples
The consumer discretionary sector outperformed the consumer staples sector last week, with XLY gaining 3.6% and XLP rising 2.9%. The consumer discretionary sector has been a bright spot in the market in recent months, driven by the recovery in consumer spending and the strength of the U.S. economy.
XLY, which tracks the performance of the consumer discretionary sector, has been a strong performer in recent months, driven by the strength of its constituent stocks. The fund has gained over 20% in the past year, outperforming the broader market.
XLP, on the other hand, has been a laggard in recent months, driven by the weakness in the consumer staples sector. The fund has gained over 5% in the past year, underperforming the broader market.
Conclusion
In conclusion, Expedia, Monster Beverage, and Tyson Foods were among the top performers in the consumer discretionary sector last week, driven by their strong Q2 earnings and outlook hikes. The sector outperformed the consumer staples sector, driven by the recovery in consumer spending and the strength of the U.S. economy. As investors await Tuesday’s inflation data, it will be important to monitor the performance of these stocks and the broader market.
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