10 Consumer Stocks With the Highest Earnings Growth Last Quarter

Now that retail stocks are largely done with quarterly earnings reports, which companies had the best growth in the second quarter?

It's no secret that consumers prefer to shop on online behemoth Amazon (AMZN) rather than heading to a store or the mall. But Amazon wasn't the only retailer to pick up share in the second quarter.

Those stores with the best reported same-store sales growth included Home Depot (HD)  , even though its SSS growth of 4.5% missed estimates of 4.8%, and TJX (TJX)  , which reported SSS growth of 4% vs. 3% consensus. Consumers are also choosing to spend their money at value stores and on experiences, for instance, according to Thomson Reuters I/B/E/S.

TJX is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio.

Thomson Reuters measured the earnings growth of stocks that have already reported earnings that trade in its Retail/Restaurant Index. The index comprises 169 consumer companies within the S&P 500, the S&P MidCap 400 and the S&P SmallCap 600.

Here are the 10 companies with the highest growth rates as of midday on Aug. 23.

10. Netflix
10. Netflix

Sector: Internet & Catalog Retail/Internet & Direct Marketing Retail
Market Cap: $41 billion

Netflix (NFLX) shares sank after the Internet streaming service said subscriber growth in the second quarter was below expectations -- but growth of its EPS is up 50% year over year.

Netflix reported on July 18 earnings of 9 cents a share, compared with 6 cents a share in the year-earlier period. Analysts estimated Netflix to report earnings of 7 cents a share, according to Thomson.

Shares of the company are down 16.5% in 2016.

9. Texas Roadhouse
9. Texas Roadhouse

Sector: Hotels, Restaurants & Leisure/Restaurants
Market Cap: $3.2 billion

In a tough environment for restaurants, Texas Roadhouse (TXRH) reported on Aug. 1 per-share earnings of 47 cents a share for the June-ending quarter, an increase of 56.7% over the year-earlier period, according to Thomson. The restaurant chain's results were 2 cents higher than analysts' estimates, Thomson said.

Texas Roadhouse said restaurant margin improved by 302 basis points to 19.2%, driven by lower food costs. However, the company's sales fell short of estimates. The slowdown left investors reeling.

While shares of the company are up 26% in 2016, the stock is down 4.6% month-to-date.

8. TopBuild
8. TopBuild

Sector: Household Durables/Homebuilding
Market Cap: $1.31 billion

TopBuild (BLD) reported on Aug. 4 adjusted quarterly earnings of 43 cents a share, up 59.3% year over year, though the earnings were 3 cents below analysts' average estimate, according to Thomson.

The Daytona Beach, Fla.-based insulation installer's revenue of $432 million, up 6.9% over last year, also missed quarterly estimates. Zacks Investment Research downgraded the stock to sell from hold on Aug. 9.

TopBuild sells and installs insulation to the construction industry and installs other building products, such as rain gutters, garage doors and fireplaces. The company was spun off from Masco (MAS) in July 2015.

Shares of the company are up nearly 10.7% this year.

7. Toll Brothers
7. Toll Brothers

Sector: Household Durables/Homebuilding
Market Cap: $5.2 billion

Toll Brothers (TOL) , the Horsham, Pa.-based homebuilder, reported on Tuesday second-quarter adjusted earnings of 61 cents a share, up 69.4% over last year's quarter and in line with analysts' estimates, according to Thomson.

Toll Brothers, the largest builder of luxury homes, said orders rose 18% in the most recent period, but average selling price came in at $831,000 down from $834,000 a year ago.

Shares of the company surged nearly 8% on its earnings news, though the stock is down approximately 6.3% this year.

6. KB Home
6. KB Home

Sector: Household Durables/Homebuilding
Market Cap: $1.35 billion

KB Home (KBH) reported on June 21 second-quarter adjusted earnings of 17 cents a share, up 70% from the year-earlier quarter. Results were ahead of estimates by 3 cents, according to Thomson.

KB Home's better-than-expected revenue of $811.1 million jumped 30% over last year's sales. KB Home's average selling price rose 2% to $346,700.

Shares of the company are up approximately 30% this year.

5. Tempur Sealy International
5. Tempur Sealy International

Sector: Household Durables/Home Furnishing
Market Cap: $4.7 billion

Tempur Sealy International's (TPX) quarterly earnings blew past Wall Street estimates and climbed 73.6% over last year's quarter. The Lexington, Ky.-based mattress company reported on July 28 adjusted earnings of 92 cents a share, exceeding expectations of 69 cents a share.

Tempur Sealy's results were boosted by higher consumer confidence and a healthy U.S. housing market, Bloomberg cited CEO Scott Thompson as saying. The stock surged 18% on its earnings day.

Shares of the company are up nearly 13.6% for 2016.

4. Carnival
4. Carnival

Sector: Hotels, Restaurants & Leisure/Hotels, Resorts & Cruise Lines
Market Cap: $35.3 billion

Carnival  (CCL) reported on June 28 better-than-expected adjusted earnings of 49 cents a share for the second quarter, up 96% over last year. Analysts were expecting the cruise ship operator to post earnings of 39 cents a share. Revenue of $3.71 billion also topped expectations.

"Our ongoing effort to drive demand for our brands in excess of our measured capacity growth has led to increased revenues and helped maintain the mid-point of our full year earnings guidance despite the recent currency movements and rises in fuel prices," CEO Arnold Donald said in a statement.

Shares of the company are down 13% for 2016.

3. Murphy USA
3. Murphy USA

Sector: Specialty Retail/Automotive Retail
Market Cap: $2.86 billion

Murphy USA (MUSA) reported on Aug. 3 quarterly earnings of $1.17 a share, surpassing Wall Street estimates and rising 98.3% from the previous year.

Analysts were expecting the gas station and convenience store operator to post earnings of 99 cents a share. Still, sales of about $3.01 billion fell short of estimates. Analysts were calling for the El Dorado, Ark.-based company to post revenue of $3.17 billion.

Shares of the company are up 20.4% for 2016.

2. Callaway Golf
2. Callaway Golf

Sector: Leisure Products
Market Cap: $1.1 billion

Callaway Golf (ELY) reported on July 27 quarterly earnings of 36 cents a share, surpassing Wall Street estimates and rising 140% from the previous year. Analysts were expecting the golf club and golf ball maker to post earnings of 30 cents a share for the June-ending quarter.

Shares of the Carlsbad, Calif.-based company are up 23% for 2016, helped by Nike's (NKE) decision to exit the golf club business earlier this month.

1. Amazon.com
1. Amazon.com

Sector: Internet & Catalog Retail
Market Cap: $360 billion

Amazon's (AMZN) quarterly earnings of $1.78 a share for the June-ending quarter not only surged past street estimates but had the highest growth of the consumer stocks Thomson tracks in the quarter.

Analysts estimated the online retailer to post earnings of $1.11 a share. Amazon's per-share earnings in the second quarter of 2015 were 19 cents.

Amazon said net sales rose 31% over the year-earlier period to $30.4 billion. The company projected third-quarter sales between $31 billion and $33.5 billion, up between 22% and 32% over the year-earlier period.

Shares of Amazon are up 12.3% this year.

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