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Raise a Toast to These 5 Consumer Discretionary Stocks in 2024
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Waning inflation and strength in the labor market bolstered confidence among consumers, with many having optimistic views about their income prospects in the upcoming six-month period.
The Fed’s monetary tightening measures for quite a while have successfully tamed relentless price pressures. The central bank’s favored gauge of inflation, the personal consumption expenditures (PCE) price index declined 0.1% month over month in November for the first time since 2020. The PCE index’s annual rate may have increased in November, but that’s less than the prior month’s yearly uptick.
Both retail and wholesale price pressures have begun to show signs of cooling down in recent times. The consumer price index advanced 3.1% year over year in November, less than October’s yearly increase of 3.2%. Similarly, the producer price index increased a meager 0.9% in November from a year ago, but that’s far less than the jump above 11.5% in March 2022, a tell-tale sign that inflation is decelerating (read more: 5 Top Stocks to Gain From Lower Interest Rates in 2024).
Americans Feel Much Better About the Economy
Americans have grown more optimistic about inflation and the labor market. They are upbeat about the present and future business circumstances and expect the economy to evade a recession this year.
The Conference Board’s consumer confidence index increased to 110.7 in December, its highest level since July. Additionally, the present situation index increased to 148.5 last month from 136.5 in the prior month. The expectations index too climbed above the 80 mark in December, indicating that recession is unlikely soon.
Consumers are now willing to purchase more household appliances and intend to go on vacations. They are more self-assured about their well-being, with confidence increasing the most among households aged 35 to 54.
Consumer Discretionary Stocks to Gain
Now, with consumers becoming confident about their financial situations and prices of indispensable commodities falling, consumer outlays are widely expected to pick up at least in the first half of this year.
And with more consumers willing to open up their purses, companies that provide nonobligatory products and services are most likely to benefit. Thus, it’s prudent for astute investors to place their bets on five such consumer discretionary stocks for solid gains in the new year.
These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also boast a VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
JAKKS Pacific designs a broad range of toys and consumer products. JAKKS Pacific has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for JAKK’s current-year earnings has moved up 16.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 23.4%.
Hooker Furniture is a leading manufacturer and importer of residential furniture. Hooker Furniture has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for HOFT’s current-year earnings has moved up 76.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.4%.
Netflix is considered a pioneer in the streaming space. Netflix has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for NFLX’s current-year earnings has moved up 0.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 21.4%.
Skillz provides a mobile games platform. Skillz has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for SKLZ’s current-year earnings has moved up 4.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 49.9%.
Acushnet designs, develops, manufactures and distributes golf products. Acushnet has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for GOLF’s current-year earnings has moved up 0.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.6%.
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Raise a Toast to These 5 Consumer Discretionary Stocks in 2024
Waning inflation and strength in the labor market bolstered confidence among consumers, with many having optimistic views about their income prospects in the upcoming six-month period.
This will surely boost consumer spending, which bodes well for consumer discretionary stocks such as JAKKS Pacific (JAKK - Free Report) , Hooker Furniture (HOFT - Free Report) , Netflix (NFLX - Free Report) , Skillz (SKLZ - Free Report) and Acushnet (GOLF - Free Report) .
Inflation is Slowing
The Fed’s monetary tightening measures for quite a while have successfully tamed relentless price pressures. The central bank’s favored gauge of inflation, the personal consumption expenditures (PCE) price index declined 0.1% month over month in November for the first time since 2020. The PCE index’s annual rate may have increased in November, but that’s less than the prior month’s yearly uptick.
Both retail and wholesale price pressures have begun to show signs of cooling down in recent times. The consumer price index advanced 3.1% year over year in November, less than October’s yearly increase of 3.2%. Similarly, the producer price index increased a meager 0.9% in November from a year ago, but that’s far less than the jump above 11.5% in March 2022, a tell-tale sign that inflation is decelerating (read more: 5 Top Stocks to Gain From Lower Interest Rates in 2024).
Americans Feel Much Better About the Economy
Americans have grown more optimistic about inflation and the labor market. They are upbeat about the present and future business circumstances and expect the economy to evade a recession this year.
The Conference Board’s consumer confidence index increased to 110.7 in December, its highest level since July. Additionally, the present situation index increased to 148.5 last month from 136.5 in the prior month. The expectations index too climbed above the 80 mark in December, indicating that recession is unlikely soon.
Consumers are now willing to purchase more household appliances and intend to go on vacations. They are more self-assured about their well-being, with confidence increasing the most among households aged 35 to 54.
Consumer Discretionary Stocks to Gain
Now, with consumers becoming confident about their financial situations and prices of indispensable commodities falling, consumer outlays are widely expected to pick up at least in the first half of this year.
And with more consumers willing to open up their purses, companies that provide nonobligatory products and services are most likely to benefit. Thus, it’s prudent for astute investors to place their bets on five such consumer discretionary stocks for solid gains in the new year.
These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also boast a VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
JAKKS Pacific designs a broad range of toys and consumer products. JAKKS Pacific has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for JAKK’s current-year earnings has moved up 16.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 23.4%.
Hooker Furniture is a leading manufacturer and importer of residential furniture. Hooker Furniture has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for HOFT’s current-year earnings has moved up 76.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.4%.
Netflix is considered a pioneer in the streaming space. Netflix has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for NFLX’s current-year earnings has moved up 0.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 21.4%.
Skillz provides a mobile games platform. Skillz has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for SKLZ’s current-year earnings has moved up 4.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 49.9%.
Acushnet designs, develops, manufactures and distributes golf products. Acushnet has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for GOLF’s current-year earnings has moved up 0.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.6%.