Geoffrey Seiler, The Motley Fool
5 min read
In This Article:
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AI is an important driver of Amazon's business.
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JAKKS Pacific is an under-the-radar toy stock.
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e.l.f. Beauty is a broken stock that still has a big opportunity in front of it.
With the U.S.-China trade tensions easing, now could be a great time to add some consumer goods companies to your portfolio. Consumer goods stocks have been particularly hard hit with tariff worries, so this is a great sector to do some bargain hunting.
Let's look at three stocks to buy right now.
Amazon (NASDAQ: AMZN) is both the leading e-commerce company in the world as well as the largest cloud computing company. It's also become one of the world's largest digital advertisers on the planet. That's a powerful combination that sets the company apart from others in the space.
The company's fastest-growing and most profitable business segment is its cloud computing business, Amazon Web Services (AWS). Here, it benefits from customers looking to build artificial intelligence (AI) models and apps on its platform and then run them on its infrastructure. The business is currently capacity-constrained, and Amazon is investing heavily to build out its data center infrastructure.
AI is driving more than just one part of its business, though. The company is leveraging it across its warehousing and logistics networks to cut costs and improve efficiency. It's also using AI with its e-commerce platform to improve product recommendations and help third-party sellers more easily create listings. In addition, AI is powering its sponsored ads business by improving targeting and helping create higher-quality ad campaigns.
Best of all, the stock is still trading at a nice discount to historical levels.
With trade tensions easing, it looks like we could be back to 30 dolls for Christmas instead of just two. That's great news for toymaker JAKKS Pacific (NASDAQ: JAKK).
While lesser known than its peers Mattel and Hasbro, JAKKS has been transforming its business over the past few years since John L. Kimble took over as CFO following stints at Mattel and Walt Disney. The company has always had a strong licensed toy and costume business, but it has been focusing on increasing the size of its non-licensed business. It also signed a deal with Authentic Brands, owner of Roxy, Juicy Couture, Quiksilver, and other brands, to offer outdoor seasonal items such as beach accessories and skateboards. While still in the test-and-learn phase, it could help boost growth and decrease some seasonality.
