Amazon, Tesla Lead 20 Stocks With A+ Profitability Grades

Amazon, Tesla and Airbnb are among 20 consumer discretionary companies with A+ profitability grades as investors examine spending, travel demand, retail activity and pricing trends during the third-quarter earnings season.

The list also includes Booking Holdings, Choice Hotels International, Deckers Outdoor, Domino’s Pizza, Expedia, Ford Motor, General Motors, Home Depot, Hilton Worldwide, H&R Block, Lowe’s, Marriott International, McDonald’s, O’Reilly Automotive, TJX Companies, Tapestry and Yum! Brands.

The grades come from a proprietary Quant system that evaluates gross, operating and net profit margins, return on equity, return on assets and efficiency measures against industry peers.

Strong profitability is likely to remain in focus as investors assess how consumer discretionary companies are navigating changes in spending patterns and consumer preferences during the earnings season.