6 Investable Consumer Trends to Know Today for Earnings Season
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Below, the LikeFolio team has done all the hard work to create just such an “Earnings Cheat Sheet” for you.
It has all the trends that could lead to companies outperforming — or underperforming — analysts’ expectations for them this quarter:
The negative trends in this season’s Earnings Cheat Sheet largely relate to conditions created by the onset of the pandemic — like home renovations, used car sales, food delivery, streaming, and at–home fitness — but have had their bubbles pop or are starting to pop as things have normalized.
For restaurants, food inflation is still high, and when people are working with a stricter monthly budget, one of the first things that normally gets cut or scaled back is going out to eat. As for department stores, many just aren’t worthwhile to visit when you can do your shopping online.
Mainly, though, I want to take you through a quick tour of the positive trends — and the free reports LikeFolio has generated for you about those trends — to make sure you are fully prepared to profit this earnings season.
Makeup/SkincareEven though inflation may finally be “cooling,” you can just look toward your monthly bills to know that it still costs more money these days just to buy groceries and to pay for services.
And with the personal savings rate for Americans hitting a 17-year low in December 2022, people are undoubtedly scrutinizing their purchases more closely.
However, folks are still splurging on tiny luxuries. Specifically: They want to buy more makeup.
For the Spring 2023 season, LikeFolio saw through its proprietary data that makeup demand mentions are up 27% year-over-year (YoY).
Using this data, LikeFolio found two potential winners in the space: You can access the free Derby City Daily report about those two companies here.
Decentralized FinanceAfter the recent round of banking collapses, Bitcoin (BTC) and crypto had their moment to shine as an alternative to traditional finance.
And LikeFolio’s data shows that mentions for decentralized finance — a way to conduct financial transactions right on the blockchain, without a traditional brokerage or bank — skyrocketed:
Of course, it didn’t take long for some cold water to be thrown on crypto. Two exchanges are dealing with potential legal issues, which is part of what has paused the BTC rally from nearing $30,000.
But if you’re comfortable with a potentially high-risk, high-reward investment that benefits from more folks trading and investing in cryptocurrencies, the LikeFolio team has one for you.
Free access to the Derby City Daily high-risk, high-reward crypto investment is available here.
Artificial IntelligenceBill Gates was ahead of his time in 1995, when he said the internet was a “tidal wave” that would “change the rules.” People were skeptical then; now we all know how the internet changed commerce and business, relationships, and much more.
Fast forward to 2023 and Gates recently shared a seven-page manifesto where he predicts that AI is the next tidal wave to change the rules:
“The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the Internet, and the mobile phone. It will change the way people work, learn, travel, get health care, and communicate with each other. Entire industries will reorient around it. Businesses will distinguish themselves by how well they use it.”
One company, in particular, has just rolled AI into its services — and already seen its generally happy customers become even more so. LikeFolio found its Consumer Happiness Mentions have climbed 2% year-over-year (YoY).
Keeping people happy is one part of the battle, as it can keep reoccurring revenue on the books.
But you also need to bring in new users, and this company also has seen Purchase Intent Mentions — how many people are talking about downloading or planning to download the company’s app — increase 15% YoY. That is significantly higher than its competitors (company names revealed within the full free report):
While other AIs are busy telling a journalist that he was unhappy in his marriage and to leave his wife… This isn’t AI being used in a creepy or concerning way — it’s AI done right.
Check out the Derby City Daily report about this company for free at this link.
Luxury Goods/FashionAside from makeup as a more affordable luxury for those working on their monthly budgets… Those who previously bought luxury goods and high-end apparel still have the disposable income to keep shopping… and then some.
Mentions of high-end apparel are up 56% YoY.
Three stocks have been riding this trend higher over the past six months, with one up nearly 13%, one up over 32%, and one up 45%, respectively:
If these companies can keep customers happy and keep generating demand, they all could be long-term opportunities.
Free access to the names and tickers of each company is available here.
Sports BettingSports betting is growing in size and consumer interest, and more states are legalizing it — three ingredients for success for this industry.
Looking at the numbers, the sports betting market in the United States reached $74 billion in 2022, which is up 68% from $44 billion in 2021. And LikeFolio co-founder Andy Swan believes that three or four more states could also legalize sports betting this year.
But this is a cutthroat business, so before placing your own wager on any gambling stock, make sure you listen to Andy’s video report:
CruisesWhen you think about just the cost to feed a family for a week, the idea of a vacation feels more nerve-racking than exciting.
That’s why all-inclusive cruises are becoming attractive vacation options.
They aren’t cheap by any means, but when your food, lodging, transportation, AND entertainment costs are generally covered, it starts making you want to hit the “book” button.
But don’t take just my word for it: You can see in the chart below, mentions about booking a cruise are booming even more than they originally did as the world reopened from COVID:
There are three investable companies to consider in playing the cruise trend, but LikeFolio has one worth paying special attention to.
Everything you need to know is available here.
Bottom line: There’s always a place to make money in the stock market if you know where to look. First, you’ve got to know which events to look at — like earnings season — then which specific companies are likely to exceed expectations… and see their stocks soar accordingly. The six positive trends that could give a boost this earnings season are makeup/skincare, luxury goods and fashion, decentralized finance, artificial intelligence, and cruises.