3 Top Consumer Discretionary Stocks to Buy on the TSX Today The Motley Fool Canada

Still, there are reasons to be optimistic toward the best stocks to buy from the consumer discretionary sector. For one, “discretionary spending could remain strong among higher-income consumers who feel less squeezed by rising costs,” says Jordan Michaels, sector portfolio manager at Fidelity. 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. Some causes of volatility for consumer discretionary stocks can include changes in interest rates.

• That makes it one of the best consumer discretionary stocks to buy now.
• Nike has built a strong digital ecosystem around apps such as SNKRS and the Nike Training Club, which has buffered much of the impact.
• The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months.
• The report states that over 50% of the consumers, including millennials, plan to spend extra on beauty products, electronics, and apparel.

The chart below shows the price performance of our five picks in the past three months. Nike’s innovation prowess is evident in its cutting-edge footwear and apparel designs, constantly pushing the boundaries of performance and style. Its flagship footwear technologies, such as https://forex-reviews.org/ Air and Zoom Air, have revolutionized athletic performance, while its apparel designs seamlessly transition from the field to the streets. This ability to bridge the gap between athleticism and everyday wear has expanded Nike’s reach beyond traditional sporting boundaries.

Should you invest in consumer discretionary stocks?

AutoZone is the premier seller of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in the United States. AutoZone had 6,767 stores in the U.S. (6,051), Mexico (664), and Brazil (52) as of the end of fiscal 2021. NKE’s digital business has been gaining from robust consumer trends, including momentum in the NIKE mobile app led by improved traffic and increased member buying frequency. Backed by solid consumer momentum, a robust innovation pipeline and strong inventory, management provided a solid outlook for fiscal 2024. In the near to medium term, however, there could be more downside if economic data doesn’t meet expectations. Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors.

• Brunswick is Cantillon’s 18th largest position out of its 40-stock portfolio.
• 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.
• The sector is considered a leading indicator of economic activity, as consumer spending accounts for a significant portion of gross domestic product (GDP).
• The consumer discretionary stocks sector shows promise in the near term, yet investors are advised to weigh these risks against their risk tolerance before making investment decisions.
• We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.

The consumer discretionary sector comprises businesses that sell goods and services that are considered non-essential by consumers. These are the products that consumers can https://forexbroker-listing.com/ avoid without any major consequences to their well-being. In fact, these goods are desirable only if the available income of an individual is sufficient to purchase them.

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It also saw a 29.4% jump in adjusted operating income to $202 million. For all of 2022, the company’s revenues were 16.5% higher, to $6.81 billion, while its adjusted operating earnings were $1.05 billion, 18.3% more than in 2021. “When vendors and other https://forex-review.net/ retailers are overstocked, the merchants at TJX have the opportunity to scoop up great items that enhance the treasure hunt atmosphere that drives traffic and sales.” As a result of this success, Tapestry launched a new program to build on its momentum.

What’s the best way to invest in consumer discretionary stocks?

Best Buy announced second-quarter results (July end) for fiscal 2022 in late August. Net income came in at $734 million, or $2.90 per diluted share, compared to net income of $432 million, or $1.65 per diluted share, in the prior-year period. The company has an earnings yield of 8.4% and a 2.2% dividend yield, relatively rare for consumer discretionary firms. An unexpected economic shock can see a company’s business and share value drop quickly. This is where the sturdiness of the company’s fundamentals come into play. Many great stocks in Canada fall under the consumer discretionary sector.

Consider Investing in Consumer Discretionaries

In addition, the company saw double-digit percentage sales increases in each of its four geographical reporting segments, suggesting an extensive recovery in worldwide consumer spending. These are the consumer discretionary stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated. Factors to consider when evaluating consumer discretionary stocks include company financials, industry trends, competition and consumer behavior. If your horizon is long enough, you might wait, pick up additional shares when prices are down, and see them rebound. If you’re close to retirement, reducing the percentage of consumer discretionary stocks in your portfolio might make sense as a way to control risk near when you might want your money.

Invest in the best consumer discretionary stocks with Interactive Brokers for fast and easy execution. EBay operates one of the largest e-commerce marketplaces in the world, with $85 billion in 2020 gross merchandise volume, or GMV, rendering the firm the fifth-largest global e-commerce company. EBay generates roughly 56% of its GMV in international markets (versus 44% in the U.S.), with a large presence in the U.K., Germany, and Australia. In this article, we will take a look at 12 of the best consumer discretionary stocks to buy. If you want to see more of the best consumer discretionary stocks to buy, go directly to 5 Best Consumer Discretionary Stocks to Buy. Coca-Cola is actively expanding its global footprint, reaching new markets and establishing itself as a ubiquitous beverage destination.

Restaurant Brands International Inc. (NYSE:QSR)

Its stores are packed with merchandise, offering a sense of discovery and the thrill of finding unexpected deals. This treasure hunt atmosphere has cultivated a loyal customer base who enjoy the thrill of the hunt and the satisfaction of finding great deals. Starbucks excels in creating a welcoming and engaging customer experience. Its cozy atmosphere, friendly baristas and inviting ambiance have transformed its stores into community hubs where people gather to connect, work, or simply enjoy a moment of respite. This focus on customer experience has fostered a strong emotional connection with its patrons.

Costco’s unique business model revolves around offering a curated selection of high-quality merchandise at consistently low prices. By limiting its product offerings and negotiating favorable deals with suppliers, Costco can pass on significant savings to its members, who pay an annual membership fee to access these benefits. This value proposition has attracted loyal customers who appreciate Costco’s commitment to quality and affordability. TJX Companies creates a unique shopping experience that appeals to treasure hunters and bargain enthusiasts.