TOP 9 Companies' Stocks - Wish List Gift

The festive season is around the corner. We will soon need presents under our Christmas tree. Here are the top 9 companies’ stocks from our wish list gift.

1. Mattel Inc

Almost every house will once have a Barbie doll or a Hot Wheels car – and Mattel Inc. (NYSE:MAT) is the maker of the most well-known toy brands. With a presence in 35 countries and selling products in more than 150 countries, Mattel remains relevant despite with increasing of gadgets and digital toys.

Dolls are an important part of Mattel as they generate ⅔ of their profit for Q4 compared to other segments. Plus, its strongest player – Barbie and Hot Wheels was crowned as the No 1 toy globally in 2020 and 2021 by The NPD Group and expects the momentum to continue for Christmas 2022.

Under a new management umbrella, Mattel is moving forward on its long-term initiative to expand beyond physical toys. The company had 14 films in production since the beginning of 2022. Next, Mattel adds digital games into its company’s portfolio, which includes a collaboration with Chinese mobile game developer NetEase.

Even with the pandemic hitting the whole world in 2020, Mattel had constant revenue growth. For its revenue circle ending September 30 – Mattel reported $5.82B revenue in 2022 with a 10.19% increase from 2021 to 2021, Mattel had another rise of 18.95% from 2020 with $5.458B.

According to Statista, total sales of toys and games are expected to rise to $492 B by 2026.

The company reported Q3 2022 net sales of $1,756 M and quarterly earnings of $0.82 per share beating analyst expectations of $0.73, yet the toy maker’s stock still slides of 13.07% since the earnings announcement.

Mattel Inc has been around since 1945 and continues in bringing joy and smiles to kids as well as to grown adults. After finding great success with toys and games, it’s branching out into entertainment, too. With the yearly trend of price rises as Christmas approaches, the go-to Christmas gift choice company is a good company to consider.

2. Bath & Body Works

The company formerly known as L Brand was founded in 1963 and specialized in fragrances, body care, home scents, soaps, and sanitizer products. As of January 2022, Bath & Body Works operated 1,755 company-operated retail and 338 international partner-operated stores.

The price of Bath & Body Works Inc (NYSE: BBWI) was trading higher in Wednesday’s November 16, 2022 after-hours session as the company’s financial results report turned out to be better-than-expected and raised its full-year earnings outlook. The stock after-hours trade has seen an increase of 22.58% at $38.49.

The company reported Q3 2022 earnings of $0.40 per share, doubling estimates of $0.20 per share. Bath & Body Works expects Q4 earnings to be valued between $1.45 and $1.65 per share versus average estimates of $1.55 per share. BBWI also highlighted and raise its full-year earnings estimation range of $2.70 to $3 per share to a new range of $3 to $3.20 per share.

Bath & Body Works Inc share YTD price had dropped 55% from its $70.45 on January 4, 2022. The company reported net sales of $1.60B for the Q3 that ended October 29, 2022. It is safe to say that it had been traded at discounted.

“Looking forward through the remainder of the year and beyond, we are pleased with our assortment – a great mix of returning holiday favorites and new giftable offerings. We are continuing to stay close to our customers, and we remain disciplined in our expense and inventory management.” – Sarah Nash, Executive Chair and Interim Chief Executive Officer.

3. Sonos

Sonos, Inc (NYSE:SONO) with its subsidiaries designs, develops, manufactures, and sells multi-room audio products all around the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Formerly known as Rincon Audio before changing its name in 2004 is well known for its wireless speakers, home theater speakers, components, and accessories.

The multi-room audio systems maker shares are trading higher on November 16, 2022, Wednesday’s after-hours session with a 5.34% increase to $17.74 after the company reported better-than-expected financial results.

The company said its fiscal fourth-quarter revenue of $316.3 million beat the average analyst estimation of $291.54 million. Sonos Inc. added 2.3% per-share earnings and revenue to its Q4 earning forecast.

From a product standpoint, 2022 was an exciting year. Sonos Inc. had launched 5 products and services and completed 3 acquisitions. The company also expects a full-year 2023 revenue to be between $1.7 billion and $1.8 billion.

4. Apple

Apple (NYSE:AAPL) is one of the most well-known brands in the world thanks to its electronic product that completes a whole ecosystem of user experience. It covers phone, laptop, watches, apple home system, smart car play, music range, and many more with the brand badge of iPhone, iPad, and iTunes. Apple also is the first company to hit a market cap of $2 trillion.

Along with millions of brand loyalists, Apple’s product range makes an excellent gift.

The company’s demand had been increasing beyond the holiday season. After the coronavirus pandemic outbreak, the working nature changed significantly. Many companies employed hybrid systems shifting from traditional to digital office space and contribute to Apple’s products and services moving skyward.

According to Statista, the global revenue (in billion U.S. dollars) of Apple had been in the constant increase since 2004.

The company’s YTD stock price had been on a red note. However, the price had increased by almost $100 since last March 2020 as it was traded at $57.31. Not only that, for a long-term investor, the stock had an increase of 249.76% of 5 years projection.

5. Pandora

The Denmark-based jewelry maker also had been on the constant gift list for Christmas. Pandora is known for its customizable charm bracelets, designer rings, earrings, necklaces, and watches. With a presence at 2,700 stores, as well as more than 4,000 distribution points from retail partners. According to its management, ⅓ of all Google searches for branded jewelry are for Pandora (CPH: PNDORA). It shows that the brand had become a mindshare leader in the jewelry segment. Certainly, the company’s investment in personalization, brand reach, and expanding its core markets in the U.S. and China had paid off.

The brand reported last September of its quarterly revenue of $5.26B, an increase of 11.32% from the last quarter. Along with its earnings of $7.80 per share. However, the significant revenue had yet to be reflected in its shares, as its price had been constantly dropping.

6. Movado Group

Movado (NYSE:MOV) is one of the brands that benefitted from the pandemic and soared in 2021. The brand is a strong American luxury watchmaker. It is best known for its Museum watch range and is the designer and distributor of its high-end timepieces such as Lacoste, Hugo Boss, and Coach. Watches under Movado are known for their signature metallic dot at 12 o’clock and minimalist style.

During the coronavirus timeframe, Movado invested in the omnichannel infrastructure. This is due to the watch demand of the past years. It had been a challenging year for every watchmaker due to smartphones, and the influx of demand for smartwatches added another level of complexity to the market. Thus, the company finds it necessary to step into the game for consumers looking for more high-tech features. Nevertheless, Movado places its presence in the smartwatch game with luxury pieces that retail for $1,000 and up.

The company revenue (fiscal year ended January 31, 2022) of $732.39M, an increase of 44.63% from the previous year. Nevertheless, its share is still stagnant, ranging from $30-40 throughout 2022. It is climbing slowly after its crash to $9.18 on March 20, 2020.

** Movado will announce its fiscal 2023 earnings results on Tuesday, November 22, 2022.

7. Estee Lauder

The home of high-end skincare and makeup products had always been a top performer. The strong brand behind major names such as Estee Lauder (NYSE:EL), La Mer, Bumble and Bumble, and Aveda. Even when the COVID-19 pandemic hammered the beauty industry, the brand remains strong. Its range serves as a great gift during any festive season and even birthdays.

Unlike other brands that slumped after the pandemic announcement, Estee Lauder’s stock price continues climbing. It was traded at $151 on March 20, 2020 and jumped to $222.91 on November 17, 2022 – a total of 47% increase. Not only that, Estee Lauder’s revenue for 12 months ending September 30, 2022 was $17.275B, a 1.35% increase from 2021.

8. Starbucks

The largest coffee chain is not only serving great coffee but also has a wonderful range of merchandise. Starbucks (NYSE:SBUX) continues to serve the European cafe experience to the US, along with affordable luxury caffeinated beverages with millions of loyal customers all over the world.

Although its sales numbers fell sharply during the pandemic, the company’s success in its comparable-store sales and online presence had steadily grown after the pandemic. Along with the rise of TikTok after covid, the brand benefited from it.

In September 2022, the company announced a “reinvention plan”. The main purpose of the plan is to drive their sales growth rate of 7%-9% and net sales growth of 10%-12% over the next three years. It is by reinventing the whole corner of Starbucks – Investing in employee engagement, store efficiency, digital programs, Starbucks Rewards membership, product innovation, and new stores.

Read <Starbucks – The Dividend Pick>

Starbucks previously announced its quarterly dividend increase from $0.49 to $0.53 per share. The increase of 0.8% will take effect on November 25, 2022, to shareholders following the record on November 11, 2022. The company’s dividend had been constantly increasing for the past 12 years.

Starbucks recorded revenue of $ 32.25B, an increase of 10.98% from the previous year. Approaching its dividend day, the stock price had an increase of 3.18% for the last 5 days.

The company’s majority of sales come from beverages. The revenue is also generated mainly from its North American segment, consisting of the U.S. and Canada. Starbucks is currently focusing on international expansion and new products for future growth. Their expansion in China had surpassed 6,000 Stores, pushing the global store count to 35,711.

“We saw accelerating demand for Starbucks coffee around the world in Q4 and throughout the year,” said Howard Schultz, interim chief executive officer.

9. Bassett Furniture Industries

Bassett Furniture Industries, Inc. (NYSE:BSET) is a leading manufacturer and marketer of high-quality, mid-priced home furnishings. New furniture during Christmas is always a better Christmas. With 92 company-and licensee-owned stores, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores.

Focusing on providing consumers with a friendly and professional environment for buying furniture and accessories. Bassett comes with a retail strategy that offers affordable custom-built furniture that is ready for delivery to the home within thirty days.

One of the oldest American furniture companies announced its consolidated revenue for Q3 2022 of $118.0M, a 12.5% increase compared to the same quarter last year. The ongoing increase of high inflation, rising mortgage rates, and a slowdown housing market have certainly taken a toll on the company’s performance. On the other hand, Bassett managed and also acquired a Montreal- based online furniture retailer, Noa Home Inc on September 6, 2022.

“we do plan to continue our aggressive marketing spending as long as we can see corresponding upticks in business as a result”.

The stocks had seen a 7.65% increase over the beginning of the year and another leap of 10.60% in a span of 6 months period. Their stock is still in a recovering period after falling to below $4.5 during the pandemic outbreak.

Bottom Line

In this recession period, it might be sensitive to overall consumer spending as people tend to spend more on gifts when the economy is strong. Aside from luxury brands with their loyal ultra-high net worth customers, it’s difficult for most companies to build a competitive advantage, but even with forecasting slower growth in the industry after the non-stop inflation, crypto outbreak, and more. It is still a possibility of a bright upside in the market.

The key-takeaways/market update is a new series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.

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