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Yahoo
3 days ago
- Business
- Yahoo
Pick 5 Buyer-Focused Stocks as Consumer Confidence Rebounds in May
On May 27, the Conference Board reported that the U.S. Consumer Confidence Index has rebounded this month after five consecutive months of decline. The final reading for May came in at 98, significantly above the Zacks Consensus Estimate of 86. The metric for April was revised marginally downward to 85.7 from 86 reported earlier. May's consumer optimism was primarily driven by expectations of a U.S.-China trade deal, the delay by the Trump administration to impose 50% tariffs on the European Union and the ongoing negotiations related to tariff and trade policies with several other major trading partners of the United States. At this stage, investment in consumer discretionary stocks should be fruitful. Five such stocks with a favorable Zacks Rank are: Netflix Inc. NFLX, The Walt Disney Co. DIS, Charter Communications Inc. CHTR, Roku Inc. ROKU and Roblox Corp. RBLX. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Present Situation Index—based on consumers' assessment of current business and labor market conditions — rose to 135.9 in May from 131.1 in April. The Expectations Index — based on consumers' short-term outlook for income, business, and labor market conditions — climbed to 72.8 in May from 55.4 in April. However, this sub-index remained below the threshold of 80, which typically signals a recession ahead. In May, 44% of respondents expect stocks to be higher over the next 12 months, compared with 37.6% in April. With respect to the labor market, 19.2% of respondents expect more jobs to be available in the next six months compared with 13.9% in April. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Netflix handsomely beat the Zacks Consensus Estimate for bottom line while the top line was mostly in line with the consensus mark in first-quarter 2025. Despite trade and tariff-related doldrums, NFLX seems to have maintained healthy engagement levels. NFLX reaffirmed its 2025 guidance irrespective of the possibility of a near-term recession. On April 1, Netflix launched its Ad Suite in the United States. NFLX will ramp up this Ad Suite in international markets in the ensuing second quarter. The ad-supported offerings will enable management to witness impressive subscribers and ARPU (average revenue per user) growth. Netflix's policies of offering an ad-supported lower-priced tier, abolishing password sharing and effective price increase, should help it to become a defensive play ahead of a possible economic downturn. Furthermore, Netflix uses artificial intelligence (AI), data science and machine language extensively to provide consumers with more appropriate and intuitive suggestions. Netflix's AI platform takes into account an individual's viewing habits and hobbies and accordingly provides recommendations. NFLX's AI model compiles subscriber information and recommends content based on their preferences, which can be customized by end users. AI applications enable NFLX to offer a high-quality streaming service at reduced bandwidths. Netflix has an expected revenue and earnings growth rate of 14% and 27.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 60 days. The Walt Disney reported steady second-quarter fiscal 2025 results wherein revenues and earnings increased year-over-year. Domestic Parks & Experiences saw growth at domestic parks, Disney Vacation Club and Disney Cruise Line, partially offset by the decline at international locations including Shanghai Disney Resort and Hong Kong Disneyland Resort. In Entertainment, DIS expects double-digit percentage operating income growth in fiscal 2025. ESPN continues to reinforce its position as a sports-dominant platform, with the second quarter delivering its most-watched primetime ever and 32% viewership growth in the key 18-49 demographic. DIS has successfully transformed its streaming business from a loss-leader to a profitable growth engine. After reporting its first-ever Direct-to-Consumer (DTC) operating profit in fiscal year 2024, the momentum has accelerated in fiscal year 2025 with second-quarter DTC operating income reaching $336 million. The Walt Disney has an expected revenue and earnings growth rate of 3.8% and 15.1%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.6% in the last 30 days. Charter Communications' first-quarter performance benefited from continued growth in mobile service revenues, which surged 33.5% year over year, adding 514K new mobile lines. CHTR's Internet revenues grew 1.8%, driven by promotional rate step-ups and rate adjustments. Spectrum Mobile's competitive pricing & expanded 5G coverage remain the key growth drivers. In March 2025, Spectrum Mobile launched satellite-based services through a collaboration with Skylo, a non-terrestrial network service provider. CHTR's Spectrum One continues to win market share with its differentiated offerings like Mobile Speed Boost and Spectrum Mobile Network, each of which runs on its advanced Spectrum WiFi. Spectrum WiFi provides unlimited Internet access to residential customers even when they are outdoors. It will also help CHTR fend off competition. Charter Communications has an expected revenue and earnings growth rate of 0.3% and 13.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.1% in the last 30 days. Roku benefits from increased user engagement on The Roku Channel and the popularity of the Roku TV program. The Roku OS is the #1 selling TV OS in the United States, with TV unit sales greater than the next two TV operating systems combined. The Roku Channel reached U.S. households with approximately 145 million people and remained the #3 app on its platform by both reach and engagement, with streaming hours up 82% year over year. More than 80% of streaming hours on The Roku Channel originates from the Roku Experience. Roku continued to expand penetration in the United States, surpassing half of the broadband households. Roku has an expected revenue and earnings growth rate of 10.5% and 80.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 39.3% in the last 30 days. Roblox develops and operates an online entertainment platform. RBLX offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that allows developers and creators to build, publish and operate 3D experiences and other content. RBLX also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform. Roblox has an expected revenue and earnings growth rate of 22.5% and 2.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.1% in the last 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report Roblox Corporation (RBLX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
UPI
3 days ago
- Business
- UPI
May American consumer confidence rebounds after five months of decline
Traders work on the floor of the New York Stock Exchange on Wall Street in February. File Photo by John Angelillo/UPI | License Photo May 27 (UPI) -- The nonprofit research organization The Conference Board announced Tuesday that the confidence of American consumers in regard to current business and labor market conditions is on the rise, but notes a recession could be on the horizon. According to a press release, the Board's Consumer Confidence Index increased in May by 12.3 points to 98, up from 85.7 in April. Its Present Situation Index, which is based on the assessment of American consumers on current business and labor market conditions, also went up 4.8 points to 135.9. The Board's Expectations Index, which measures the short-term outlook of American consumers in relation to business, income and labor market conditions also rose 17.4 points to 72.8. Global Indicators at The Conference Board Senior Economist Stephanie Guichard said that consumer confidence "improved in May after five consecutive months of decline." However, as per The Conference Board, when the Expectations Index stays below 80, it often signals an imminent recession. Even so, the data indicates that consumers were more confident about potential job availability and business conditions over the next six months and had increased optimism about future income prospects. Guichard also said that consumers' outlook on stock prices improved as the market showed a positive direction in May "with 44% expecting stock prices to increase over the next 12 months," an increase from 37.6% in April, "and 37.7% expecting stock prices to decline," which is down from 47.2% in April. "This was one of the survey questions with the strongest improvement after the May 12 trade deal," she added. The reported cutoff date for the data taken in for these scales was May 19, but around half were received after the May 12 announcement by the Trump administration that it had paused tariffs on Chinese imports. "The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards," Guichard also explained, but while Expectations Index had risen from April, "their appraisal of current job availability weakened for the fifth consecutive month."
AU Financial Review
4 days ago
- Business
- AU Financial Review
ASX to rise, Wall St lifts on EU-US trade hopes, consumer data
Australian shares are set to open higher, tracking gains in Europe and the US on hopes that the EU and the US are on a path towards resolving US President Donald Trump's trade demands. In a social media post, Trump said he was encouraged to hear that EU negotiators were accelerating talks with their US counterparts. Separately, Wall Street's mood was lifted by a Conference Board report showing renewed optimism among US consumers. All 11 of the S&P 500 industry groups were higher in early afternoon trade. The board's Consumer Confidence Index increased by 12.3 points in May to 98.0, up from 85.7 in April – well above a consensus estimate for 87. The Present Situation Index —based on consumers' assessment of current business and labour market conditions—rose 4.8 points to 135.9. The Expectations Index —based on consumers' short-term outlook for income, business, and labour market conditions—surged 17.4 points to 72.8. 'The rebound is striking, and tempered only partially by the fact that the survey window, which closed on May 19, will have picked up the improvement in sentiment due to the trade truce with China,' Pantheon Macroeconomics' Oliver Allen said. Santander's Stephen Stanley said that while the book is far from closed on tariffs, financial markets seem ready to move past it, and the latest Conference Board data 'suggest that households may be moving in that direction as well'. Market highlights ASX futures are pointing up 40 points or 0.5 per cent to 8477. All US prices are as of 1.30pm New York time. Today's Agenda Goodman Group is scheduled to report quarterly results, while Web Travel is on deck for full-year results. Fisher & Paykel Healthcare and Infratil also are set to report annual financials. Local investors will be focused on the April CPI indicator. eToro's Josh Gilbert said the indicator has remained stable at 2.4 per cent for the past two months, and :we're likely to see the CPI for April remain stable or even slow down to 2.3 per cent (which is the consensus estimate), despite Trump's 'Liberation Day' tariffs temporarily reigniting inflation concerns. 'If April's CPI does come in at 2.3 per cent, it's a sign that disinflation is once again resuming after a stable few months and that Trump's tariffs have had minimal impact on local consumers.' Across the Tasman, the RBNZ is widely expected to cut its key rate by 25 basis points at Wednesday's policy meeting. The decision will be announced at 12pm. Top stories 'No data centre strategy': Industry slams NSW's Macquarie Park ban | The decision to prohibit new data centres at Macquarie Park is the latest flashpoint as governments and regulators try to manage sector's runaway growth. | Woodside and Santos bosses have warned that ideological opposition to gas projects is scaring off investment and risks undermining Asia's energy transition. | The future of the failed private hospital giant is partly in the hands of five Chinese state-owned banks and asset managers which control a fifth of its debt.
Miami Herald
4 days ago
- Business
- Miami Herald
May American consumer confidence rebounds after five monts of decline
May 27 (UPI) -- The nonprofit research organization The Conference Board announced Tuesday that the confidence of American consumers in regard to current business and labor market conditions is on the rise but notes a recession could be on the horizon. According to a press release, the Board's Consumer Confidence Index increased in May by 12.3 points to 98, up from 85.7 in April. Its Present Situation Index, which is based on the assessment of American consumers on current business and labor market conditions, also went up 4.8 points to 135.9. The Board's Expectations Index, which measures the short-term outlook of American consumers in relation to business, income and labor market conditions also rose 17.4 points to 72.8. Global Indicators at The Conference Board Senior Economist Stephanie Guichard said that consumer confidence "improved in May after five consecutive months of decline." However, as per The Conference Board, when the Expectations Index stays below 80, it often signals an imminent recession. Even so, the data indicates that consumers were more confident about potential job availability and business conditions over the next six months and had increased optimism about future income prospects. Guichard also said that consumers' outlook on stock prices improved as the market showed a positive direction in May "with 44% expecting stock prices to increase over the next 12 months," an increase from 37.6% in April, "and 37.7% expecting stock prices to decline," which is down from 47.2% in April. "This was one of the survey questions with the strongest improvement after the May 12 trade deal," she added. The reported cutoff date for the data taken in for these scales was May 19, but around half were received after the May 12 announcement by the Trump administration that it had paused tariffs on Chinese imports. "The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards," Guichard also explained, but while Expectations Index had risen from April, "their appraisal of current job availability weakened for the fifth consecutive month." Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
4 days ago
- Business
- UPI
May American consumer confidence rebounds after five monts of decline
Traders work on the floor of the New York Stock Exchange on Wall Street in February. File Photo by John Angelillo/UPI | License Photo May 27 (UPI) -- The nonprofit research organization The Conference Board announced Tuesday that the confidence of American consumers in regard to current business and labor market conditions is on the rise but notes a recession could be on the horizon. According to a press release, the Board's Consumer Confidence Index increased in May by 12.3 points to 98, up from 85.7 in April. Its Present Situation Index, which is based on the assessment of American consumers on current business and labor market conditions, also went up 4.8 points to 135.9. The Board's Expectations Index, which measures the short-term outlook of American consumers in relation to business, income and labor market conditions also rose 17.4 points to 72.8. Global Indicators at The Conference Board Senior Economist Stephanie Guichard said that consumer confidence "improved in May after five consecutive months of decline." However, as per The Conference Board, when the Expectations Index stays below 80, it often signals an imminent recession. Even so, the data indicates that consumers were more confident about potential job availability and business conditions over the next six months and had increased optimism about future income prospects. Guichard also said that consumers' outlook on stock prices improved as the market showed a positive direction in May "with 44% expecting stock prices to increase over the next 12 months," an increase from 37.6% in April, "and 37.7% expecting stock prices to decline," which is down from 47.2% in April. "This was one of the survey questions with the strongest improvement after the May 12 trade deal," she added. The reported cutoff date for the data taken in for these scales was May 19, but around half were received after the May 12 announcement by the Trump administration that it had paused tariffs on Chinese imports. "The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards," Guichard also explained, but while Expectations Index had risen from April, "their appraisal of current job availability weakened for the fifth consecutive month."
