best consumer discretionary stocks

Fundamentally, not every segment of the income or wealth spectrum experienced the Covid-19 disaster equally. Plus, some international regions’ post-pandemic recovery efforts may be more promising than others. Therefore, we shouldn’t just toss the idea of high-performing consumer cyclical stocks out the window. However, if speculation runs in your blood, consider these consumer stocks with high returns. When you’re looking for the best consumer discretionary stocks to buy, you want to find companies with strong growth prospects.

The remaining stocks in this Excel document are dividend-paying consumer discretionary stocks with price-to-earnings ratios below 20 and market capitalizations above $5 billion. The next screen that we’ll implement is for dividend-paying consumer discretionary stocks with price-to-earnings ratios below 20 and market capitalizations above $5 billion. If you choose a consumer discretionary stock with a strong customer base, sound financials and proven track record of revenue growth it will likely rebound and grow after a slowdown.

Consumer discretionary stocks are also called consumer cyclical stocks, as they’re sensitive to changes in disposable income caused by economic cycles of expansion and recession. Dividends represent one part of the company’s profits from the previous period. The method that is used to calculate the dividend is described in the company’s dividend policy or articles of association. The clearer and more transparent the calculation principle, the more investors love the company. The main ones are the need for financing by major shareholders and tax optimization.

#42 – Paramount Global

Some analysts have neglected to consider how popular its products are with celebrities and average consumers. Wedbush analyst Tom Nikic (Outperform, the equivalent of Buy) commented on LULU in his Jan. 27 report to clients. He labeled the Vancouver-based company as «the controversial play» in the footwear and apparel market. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analyst ratings courtesy of S&P Global Market Intelligence, unless otherwise noted. Stocks are listed by analysts’ consensus recommendation, from lowest to highest.

Discover dividend stocks matching your investment objectives with our advanced screening tools. AutoZone is the premier seller of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in the United States. AutoZone had 6,943 stores in the U.S. (6,168), Mexico (703), and Brazil (72) as of the end of fiscal 2022. When you invest in these stocks, you invest in the American consumer.

best consumer discretionary stocks

Both sales and earnings are critical factors in the success of a company. Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers. You can also buy a wide variety of consumer discretionary stocks at the same time through an ETF. This is often cheaper — both in dollars and in research time — than buying individual stocks. Below is a list of the five best-performing consumer discretionary stocks in the S&P 500 index, ordered by one-year returns.

The Zacks Consensus Estimate for current-year earnings has improved 9.9% over the last seven days. Royal Caribbean Cruises Ltd. (RCL Quick QuoteRCL – Free Report) has been benefiting from strong close-in bookings at higher prices and continued strength of onboard spending driving load factors. Considering the extension of the WAVE season and solid pent-up demand, RCL raised its 2023 guidance. RCL expects adjusted EPS to be $4.40-$4.80, up from the previously stated $3-$3.60. Zacks Rank #1 Skechers U.S.A.  has an expected revenue and earnings growth rate of 7.5% and 31.9%, respectively, for the current year.

Consumer Discretionary Dividends, Stocks, ETFs, Funds

That said, there are many well-managed companies in this sector with a proven track record of steady returns even in the worst economic climates. It develops the next generation of electric vehicle (EV) technologies. It is a vertically integrated company that designs, engineers, and builds electric vehicles, EV powertrains, and battery systems in-house using our own equipment and factory. With a whopping 52 week price range from 9.60 – 64.86 and current price of 24.73, Lucid Group has shown a jump in share price that very few companies have experienced. The company will continue to see growth as the EV industry stays red hot in the eyes of drivers and investors.

Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Fidelity’s Guided Portfolio Summary performanceLog In Required

Review current equity sector weights for your portfolio and see how they compare to the market. Our research team runs the industry’s toughest consumer discretionary dividend screening test and only picks from the top 5%. ETFs and funds that prioritize investments based on environmental, social and governance responsibility. Learn more about dividend stocks, including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center.

#49 – Vail Resorts

So, if you’re looking for the best consumer discretionary stocks to buy, here are a few things to keep in mind.Look for companies with strong brands. Home Depot benefits from a strong housing market, as more homeowners undertake projects during this time to improve their households. The company also sells large amounts of consumer staples, which may give its sales some cushioning during a downturn. However, there is not always a direct correlation between interest rates and stock prices. For example, if the economy is weak, then companies may be less likely to borrow money and invest in growth, even if interest rates are low.

best consumer discretionary stocks

The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last seven days. Zacks Rank #2 Las Vegas Sands has expected revenue and earnings growth rates of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 23% over the last 30 days. The non-essential business models of these companies mean that their financial performance is highly reliant on the state of the overall economy. The first screen we’ll apply is for stocks with dividend yields above 2%. Since the S&P 500 is trading at a dividend yield of approximately 2% right now, this screen will be called the “above-average dividend yield” screen.


Nordstrom’s largest merchandise categories are women’s apparel (28% of 2021 sales), shoes (25% of 2021 sales), men’s apparel (14% of 2021 sales), and women’s accessories (14% of 2021 sales). Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the Nordstrom family. Benzinga offers a list of the best consumer discretionary stocks on the list above. A consumer discretionary ETF is an ETF that invests in stocks of companies that produce goods and services that are not necessary for survival. While this may seem like a risky place to invest, the truth is that these companies often benefit the most from economic growth.

These companies are involved in a number of sectors, including retail, leisure and entertainment, media, and automotive industries. Having an Excel document containing the names, tickers, and financial data for all dividend-paying consumer cyclical stocks is extremely useful. Find Consumer Discretionary investments  Search stocks, ETFs, and mutual funds in this sector. This trading strategy invovles purchasing a stock just before the ex-dividend date in order to collect the dividend and then selling after the stock price has recovered.

These stocks tend to perform exceptionally well when Americans spend money. However, when people tighten their budgets, these stocks may not fare as well. AutoZone had 6,767 stores in the U.S. (6,051), Mexico (664), and Brazil (52) as of the end of fiscal 2021. CNBC’s Jim Cramer on Friday offered investors a list of seven stocks he believes could be great additions to investors’ portfolios. An exchange-traded fund (ETF) is an investment fund that tracks an index, a commodity, or a basket of assets like an index fund but trades like a stock on an exchange.

A company with strong top-line growth is typically able to generate more revenue, while a company with strong bottom-line growth is typically more profitable. Look for companies that have strong balance sheets and are profitable. These are the types of companies that are more likely to weather economic downturns and still be standing when the economy recovers.Look for companies with a history of dividend payments. Coffee is undeniably a luxury that people can’t live without – or alternatively, won’t die from lacking it. When the economy starts going bad, people on a tight budget start looking for an alternative for their caffeine fix, such as buying it from the supermarket instead of ordering out. Enter your email address below to receive the latest headlines and analysts’ recommendations for your stocks with our free daily email newsletter.

Then there’s the textiles, apparel and luxury goods industry, which includes jewelers like Brilliant Earth (BRLT) and clothing and footwear brands such as Nike (NKE) and Lululemon (LULU). With that in mind, some investors might be looking to buy stocks that benefit from higher disposable incomes. Las Vegas Sands Corp. (LVS Quick QuoteLVS – Free Report) has been benefiting from a solid business model, extensive non-gaming revenue opportunities, high-quality assets, and attractive property locations. LVS is optimistic about Macao’s recovery on the back of resilient customer demand and spending. The table below includes fund flow data for all U.S. listed Consumer Discretionary Equities ETFs. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period.

Advantages of Investing in Consumer Discretionary Stocks

You now have a strong fundamental understanding of how to use the consumer discretionary stocks list to find high-quality investment ideas. The consumer discretionary sector is one of the larger constituents of the broader stock market. Having exposure to this important S&P 500 component is important for any well-diversified investment strategy. Cyclical stocks are sensitive to economic movements and their prices and profits are impacted by business and the health of the economy. The stock of companies in the cyclical sector may suffer decreased profits and typically lose market value during an economic hardship as people try to reduce unnecessary expenses.

On the bottom line, it earned 89 cents a share in the fourth quarter, 14.1% higher than a year ago, while full-year earnings increased 9.1% to $3.11 a share. With that in mind, here are the nine best consumer discretionary stocks to buy now. This list includes equities highly beloved by Wall Street analysts, showing solid fundamentals and boasting attractive valuations.