We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Stocks to Gain as Americans Go on a Spending Spree
Read MoreHide Full Article
A relentless increase in consumer outlays has fueled America’s economic growth in recent times and squashed concerns about an impending recession.
Despite geopolitical issues, rising interest rates, and higher gasoline prices consumers felt self-assured to open up their wallets, consequently benefiting consumer discretionary stocks such as GIII Apparel Group (GIII - Free Report) , American Woodmark (AMWD - Free Report) , lululemon athletica (LULU - Free Report) , Skechers (SKX - Free Report) and Carrols Restaurant Group .
Holiday Spending to Rise
American consumers are expected to splurge on discretionary items through the busy holiday shopping season. The National Retail Federation (NRF) stated that consumers are estimated to shell out between $957.3 billion to $966.6 billion during November and December. Thus, spending will increase between 3% and 4% over the same period last year.
The growth may be slightly lower compared to recent years, but it’s still in line with the growth rate from 2010 to 2019, when the average annual holiday outlays jumped 3.6%. Nonetheless, post-COVID, online sales have picked up, and a greater number of shoppers started to make purchases before November.
In an October survey, NRF found out that consumers plan to spend around $875, on average, on holiday items including decorations, gifts, and food, to name a few. Such spending is surely expected to boost jobs at retail outlets as well.
Consumer Spending Bouy GDP Growth
Consumers, in reality, have already begun to spend significantly, helping the broader economy to accelerate in the third quarter. Economic growth in the United States galloped at an annualized pace of 4.9% in the quarter ending in September, and the growth rate was double the growth in the first six months of 2023.
Undoubtedly, the economic growth was propelled by a big burst of consumer spending as households spent on food, beverages, recreational items, motor vehicles, and travel. According to the Commerce Department, consumer outlays increased 0.7% in September, following a rise of 0.4% in August.
5 Big Winners
Courtesy of an uptick in household outlays, consumer discretionary companies are poised to benefit as spending plays an important role in shaping their revenues. We have, thus, selected five consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GIII Apparel Group is a manufacturer, designer and distributor of apparel and accessories. GIII, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 6.5% over the past 60 days. GIII’s expected earnings growth rate for the current year is 14.7%.
American Woodmark is a manufacturer of kitchen and bath cabinets. AMWD, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 13.3% over the past 60 days. AMWD’s expected earnings growth rate for the current year is 4.9%.
lululemon athletica is a yoga-inspired athletic apparel company. LULU, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. LULU’s expected earnings growth rate for the current year is 20.5%.
Skechers designs, develops, markets and distributes footwear for men, women and children. SKX, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 1.5% over the past 60 days. SKX’s expected earnings growth rate for the current year is 44.1%.
Carrols Restaurant Group is the largest BURGER KING franchisee in the United States. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up more than 100% over the past 90 days. TAST’s expected earnings growth rate for the current year is 152.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
5 Stocks to Gain as Americans Go on a Spending Spree
A relentless increase in consumer outlays has fueled America’s economic growth in recent times and squashed concerns about an impending recession.
Despite geopolitical issues, rising interest rates, and higher gasoline prices consumers felt self-assured to open up their wallets, consequently benefiting consumer discretionary stocks such as GIII Apparel Group (GIII - Free Report) , American Woodmark (AMWD - Free Report) , lululemon athletica (LULU - Free Report) , Skechers (SKX - Free Report) and Carrols Restaurant Group .
Holiday Spending to Rise
American consumers are expected to splurge on discretionary items through the busy holiday shopping season. The National Retail Federation (NRF) stated that consumers are estimated to shell out between $957.3 billion to $966.6 billion during November and December. Thus, spending will increase between 3% and 4% over the same period last year.
The growth may be slightly lower compared to recent years, but it’s still in line with the growth rate from 2010 to 2019, when the average annual holiday outlays jumped 3.6%. Nonetheless, post-COVID, online sales have picked up, and a greater number of shoppers started to make purchases before November.
In an October survey, NRF found out that consumers plan to spend around $875, on average, on holiday items including decorations, gifts, and food, to name a few. Such spending is surely expected to boost jobs at retail outlets as well.
Consumer Spending Bouy GDP Growth
Consumers, in reality, have already begun to spend significantly, helping the broader economy to accelerate in the third quarter. Economic growth in the United States galloped at an annualized pace of 4.9% in the quarter ending in September, and the growth rate was double the growth in the first six months of 2023.
Undoubtedly, the economic growth was propelled by a big burst of consumer spending as households spent on food, beverages, recreational items, motor vehicles, and travel. According to the Commerce Department, consumer outlays increased 0.7% in September, following a rise of 0.4% in August.
5 Big Winners
Courtesy of an uptick in household outlays, consumer discretionary companies are poised to benefit as spending plays an important role in shaping their revenues. We have, thus, selected five consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GIII Apparel Group is a manufacturer, designer and distributor of apparel and accessories. GIII, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 6.5% over the past 60 days. GIII’s expected earnings growth rate for the current year is 14.7%.
American Woodmark is a manufacturer of kitchen and bath cabinets. AMWD, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 13.3% over the past 60 days. AMWD’s expected earnings growth rate for the current year is 4.9%.
lululemon athletica is a yoga-inspired athletic apparel company. LULU, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. LULU’s expected earnings growth rate for the current year is 20.5%.
Skechers designs, develops, markets and distributes footwear for men, women and children. SKX, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 1.5% over the past 60 days. SKX’s expected earnings growth rate for the current year is 44.1%.
Carrols Restaurant Group is the largest BURGER KING franchisee in the United States. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up more than 100% over the past 90 days. TAST’s expected earnings growth rate for the current year is 152.9%.