Highlights:
The consumer products and services sector is expected to be impacted by several macro headwinds such as supply chain issues, inflation and other factors. Despite the macro concerns, several consumer stocks have given high returns to shareholders in the past year.
The UK is increasingly facing multiple headwinds on a macro level at that can impact the consumer sector. Ongoing supply chain woes could impact retail and consumer services companies ahead of Christmas, as the ongoing supply chain squeeze has continued to hit several industries.
Additionally, the country is also dealing with rising inflation and record high gas prices that can weigh on the sector.
According to asset management firm Bluebay Asset Management’s chief of information officer Mark Dowding, the UK is likely heading towards stagflation.
However, despite the macro concerns, several consumer stocks have given high returns to shareholders in the past year.
Let us take a look at the top 5 stocks in the consumer products and services sector on the LSE and explore their investment prospects:
Audioboom Group PLC (LON: BOOM) Audioboom Group is a leading podcasting and media company. It is a constituent of the FTSE AIM All-Share index.
The company’s revenue stood at a record US $7.0 million for the month of August 2021, up by 187 per cent from US$ 2.4 million for the same period in the previous year.
The group forecasts its FY 2021 revenue and adjusted EBITDA will be higher than earlier estimates.
The company’s market cap stands at £161.64 million, and it has a one-year return of 492.22 per cent as of 6 October 2021.
Warpaint London PLC (LON: W7L) Another FTSE AIM All-Share index listed firm Warpaint London is a colour cosmetics business.
The company’s H1 2021 sales increased by 36 per cent to £18.4 million, up from £13.5 million in H1 2020. The growth was due to the group’s focus on boosting sales in its branded products.
The company’s market cap stands at £ 136.24 million, and it has a one-year return of 166.79 per cent as of 6 October 2021.
John Lewis of Hungerford Plc (LON: JLH) FTSE AIM All-Share index listed firm, John Lewis of Hungerford Plc, is a specialist kitchen and bedroom retailer and manufacturer.
The company in its latest trading update for FY 2021, reported that its total value of dispatched sales and forward orders stood at £4.7 million.
The company’s market cap stands at £ 1.99 million, and it has a one-year return of 151.50 per cent as of 6 October 2021.
The Watches of Switzerland Group PLC (LON: WOSG) FTSE 250 index listed company, the Watches of Switzerland Group, is a UK based retailer of swiss watches.
The company’s Q1 2022 revenue rose by 101.9 per cent on a constant currency basis, reaching £297.5 million. It’s Q1 2021 revenue stood at £151.6 million.
The firm’s strong result is due to ongoing high conversion and firm domestic sales, in spite of lower levels of store traffic.
The company’s market cap stands at £ 2,442.45 million, and it has a one-year return of 201.05 per cent as of 6 October 2021.
CVS Group PLC (LON: CVS) FTSE AIM UK 50 index listed company CVS Group is among the UK’s biggest integrated veterinary services company.
The company’s FY 2021 revenue rose by 19.2 per cent to £510.1 million, compared to £427.8 million in FY 2020. The like-for-like sales growth stood at 17.4 per cent in FY 2021, compared to 0.7 per cent in the year before.
The strong growth was due to favourable market conditions and the group’s focus on offering high quality care to its customers.
The company’s market cap stands at £ 1,705.52 million, and it has a one-year return of 99.34 per cent as of 6 October 2021.