Top 2 Consumer Stocks with a Buy Now Potential

As of Q1 2024, Disney+ ranked first in gross media spend growth, up 210%, followed by Netflix, up 135%. In light of that, Saqib, a financial analyst at Trading.biz, thought about the consumer stocks that have supported these two companies through increased advertising revenue.

• Disney+ and Netflix saw major ad spend growth in Q1 2024.
• Despite poor Q1 earnings, Starbucks is still undervalued.
• Marriott has seen a great rise in one year and the trend can continue.

“I believe that the consumer stocks advertising on both of these ad-supported networks are worth considering for portfolios. If you’ve been spending a lot on ad-tier streaming platforms, you know their businesses are likely to be flourishing.”

Here are his top two stocks:

1. Starbucks (NASDAQ: SBUX)

Among the other well-known companies to sign up for advertisements on Disney’s ad-supported tier was Starbucks (NASDAQ: SBUX).
But during the past five years, Starbucks’ stock (SBUX) fluctuated a lot, and its most recent decline may have left investors uneasy.

In 2024, Starbucks’ stock price fell by 20%, most of the drop occurring following the company’s unimpressive April 30 earnings announcement.
The management of Starbucks has declared an updated plan in recognition of the challenges. Over the next three years, management thinks it can increase efficiency and save $3 billion.

According to Saqib, the stock of Starbucks is undervalued when compared to the long-term fair value projection of $96. Thus, this is a great time to buy low.

2. Marriott International (NASDAQ: MAR)

Marriott International (NASDAQ: MAR) was one of the first brands that ran advertisements on Disney+ when it started its service in December 2022.

With its vast network of hotels, homes, and resorts for vacation ownership, it provides services to both leisure and business tourists around the world.

Over the previous three months, Marriott International’s shares dropped by 2.4%. But, MAR has gained nearly 27% in one year and can be a good buy-and-hold stock.