#7 - Nintendo (OTCMKTS:NTDOY)
Nintendo Co. Ltd. (OTCMKTS: NTDOY) is the last on our list of consumer discretionary stocks to consider before interest rates move lower. Like Electronic Arts, Nintendo has a catalyst coming, but investors will have to be patient.
As gamers know, Nintendo is the company behind the popular Nintendo Switch console. The company has delayed the launch of the next generation Switch until 2025. That’s not going to be great for holiday sales and will likely keep revenue muted for much of the year. However, a seven-year refresh cycle is a long time, and there are likely to be many pre-orders of the device.
That said, a key reason for the delay is to ensure the company has enough product to meet demand without being subject to the scalping market, which was an issue during the launch of the Switch console in 2017.
That’s the opinion of analysts who have a $58.77 price target for NTDOY stock, a whopping 324% gain from the stock’s price on July 2, 2024. And with 11 out of 22 analysts rating the stock a Strong Buy, there’s more than enough conviction for investors to follow suit.
About Nintendo
Nintendo Co, Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software.
Read More - Current Price
- $14.70
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 2 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
Now that you've identified what stocks to buy, you may be wondering when you should buy them. Timing the market is a fool's errand. However, if you pay attention to the FedWatch Tool, you'll see there's a 63.25% chance for a 25 basis points rate cut in September. If you're really bullish, you'll note that this also forecasts a 45% chance that rates may be down by 50 basis points from their current level by December.
A lot can still happen, but the takeaway remains the same. When interest rates go down, consumer discretionary stocks will go up.
That's why the time to prepare is now. To help you find consumer discretionary stocks that fit your investment style, MarketBeat offers a Stock Screener tool that allows you to sort by dividend-paying stocks, stocks that analysts favor, and more.
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