According to data released Wednesday by the U.S. Commerce Department, U.S. GDP expanded at a seasonally adjusted annual rate of 4% during the second quarter of 2014, surpassing consensus estimates of 3%. The strong growth came on the back of improved consumer spending which grew 2.5% during the quarter. The first quarter GDP was revised upward and is now reported to have declined 2.1% as against a 2.9% decline reported earlier. The U.S. consumer spending which contributes over two-thirds to total economic activity grew to $10.9 trillion in the second quarter from $10.84 trillion in the first quarter of 2014. Spending on cars and home furnishings drove personal consumption during the period while healthcare spending returned to growth. Business spending increased by 14%, as businesses restocked inventories.
Today we have picked 11 U.S. consumer goods and services stocks which are likely to benefit from the improved consumer spending. These stocks are likely to register robust growth in sales and EPS during 2014 following strong growth in 2013. Moreover, we note that the profit margins of these stocks are expected to increase during 2014. A majority of these stocks have recorded gains during the past month with average traded volume of above 100,000.
| Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
Sales Growth |
Sales Growth |
EPS Growth |
EPS Growth |
Net Profit Margin |
Net Profit Margin |
Return On Equity |
|
Dunkin’ Brands Group Inc |
NASDAQ |
DNKN |
4.6 |
43.29 |
1,317,049 |
-4.9% |
8.5% |
6.4% |
46.8% |
15.4% |
20.6% |
24.9% |
42.1% |
|
Spirit Airlines Inc |
NASDAQ |
SAVE |
4.9 |
67.12 |
927,894 |
18.1% |
25.5% |
18.8% |
62.7% |
27.7% |
10.7% |
11.6% |
27.0% |
|
Gentex Corp/MI |
NASDAQ |
GNTX |
4.2 |
29.05 |
768,662 |
1.3% |
6.6% |
16.8% |
31.4% |
25.4% |
19.0% |
20.7% |
20.4% |
|
Bitauto Holdings Ltd |
NYSE |
BITA |
2.5 |
56.03 |
909,465 |
56.4% |
36.2% |
38.7% |
78.5% |
65.1% |
16.8% |
21.1% |
20.4% |
|
Buffalo Wild Wings Inc |
NASDAQ |
BWLD |
2.7 |
145.17 |
477,575 |
-0.7% |
21.7% |
18.4% |
23.7% |
33.2% |
5.6% |
6.4% |
19.1% |
|
Gentherm Inc |
NASDAQ |
THRM |
1.5 |
42.69 |
625,182 |
17.4% |
19.3% |
18.2% |
146.2% |
76.6% |
5.1% |
7.8% |
19.1% |
|
Carter’s Inc |
NYSE |
CRI |
4.2 |
78.56 |
670,810 |
6.7% |
10.8% |
9.5% |
1.8% |
15.7% |
6.1% |
7.2% |
18.3% |
|
Sotheby’s |
NYSE |
BID |
2.8 |
40.18 |
1,098,097 |
-4.5% |
11.1% |
10.0% |
19.5% |
26.1% |
15.2% |
17.5% |
16.8% |
|
Iconix Brand Group Inc |
NASDAQ |
ICON |
2.0 |
42.83 |
515,152 |
0.8% |
22.3% |
6.6% |
45.2% |
12.0% |
29.6% |
31.0% |
15.1% |
|
Hain Celestial Group Inc |
NASDAQ |
HAIN |
4.3 |
86.35 |
542,917 |
0.4% |
25.9% |
23.7% |
22.2% |
24.8% |
6.6% |
7.4% |
9.8% |
|
TRI Pointe Homes Inc |
NYSE |
TPH |
2.2 |
13.73 |
2,762,354 |
-14.6% |
228.4% |
444.1% |
316.7% |
96.0% |
6.0% |
8.1% |
6.1% |
Source: Bloomberg
Company Description:
Dunkin’ Brands Group Inc (NASDAQ: DNKN)
Dunkin’ Brands Group Inc. franchises quick service restaurants (“QSRs”) serving hot and cold coffee and baked goods, as well as ice cream. The company operates primarily in the breakfast part of the day within the QSR segment of the restaurant industry. Dunkin’ Brands Group Inc. operates worldwide.
Spirit Airlines Inc (NASDAQ: SAVE)
Spirit Airlines Inc. is a low-fare airline based in Miramar, Florida. The Airline provides low-cost travel opportunities principally to and from South Florida, the Caribbean and Latin America. Spirit Airlines basic service combines with a range of optional services for additional fees, targets price sensitive leisure travelers and travelers visiting friends and relatives.
Gentex Corp/MI (NASDAQ: GNTX)
Gentex Corporation designs, manufactures, and markets products that use electro-optic technology. The company’s product lines include automatic-dimming rearview mirrors and fire protection products. Gentex’s Night Vision Safety Mirror automatically darkens to the degree required to eliminate rearview headlight glare. The company sells its products around the world.
Bitauto Holdings Ltd (NYSE: BITA)
Bitauto Holdings Ltd. operates Internet websites. The websites offer consumers new and used automobile pricing information, specifications, reviews, and consumer feedback. The company also places data from its dealer customers on partner websites.
Buffalo Wild Wings Inc (NASDAQ: BWLD)
Buffalo Wild Wings Inc. owns, operates, and franchises casual dining restaurants. The restaurants feature made to order menu items including New York style chicken wings. The company operates restaurants in multiple states.
Gentherm Inc (NASDAQ: THRM)
Gentherm Inc. designs, develops, and manufactures heating, cooling, and ventilating devices for diverse global markets. The company offers heated seating, climate seating, electronics, and cables. for the automotive markets.
Carter’s Inc (NYSE: CRI)
Carter’s, Inc. markets baby and young children’s apparel in the United States. The company’s brands are sold to national department stores, chain and specialty stores, discount retailers, and its own retail stores.
Sotheby’s (NYSE: BID)
Sotheby’s auctions fine arts, antiques and collectibles, offer property in a wide variety of collecting categories. The company conducts auctions in the United States and other countries. Sotheby’s also purchases and resells art, brokers art, markets and brokers luxury residential real estate, provides art-related financing, and restores art.
Iconix Brand Group Inc (NASDAQ: ICON)
Iconix Brand Group, Inc. manages brands. The company licenses its brand names to retailers and manufacturers throughout the world.
Hain Celestial Group Inc (NASDAQ: HAIN)
The Hain Celestial Group, Inc. is a natural and organic beverage, snack, specialty food, and personal care products company. The company’s product line include grocery store foods such as organic cookies, cooking oils, sugar free products, kosher foods, snacks, and frozen foods, as well as organic skin, hair, and body products. Hain Celestial sells and markets in North America and Europe.
TRI Pointe Homes Inc (NYSE: TPH)
TRI Pointe Homes, Inc. provides homebuilding services. The company designs, builds, develops, and constructs homes. TRI Pointe Homes serves customers throughout the Western United States.
