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5 Stocks to Gain as Consumers Feel Confident About the Economy
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Americans are at the moment upbeat about economic growth as the jobs market looks firm and inflation continues to cool down. Consumers now expect better business conditions to prevail in the near term and are willing to open up their wallets as they remain confident about their well-being.
Consumers’ sentiments brightened across all age groups as steady economic progress squashed recession fearmongering.
The Conference Board stated that the consumer confidence index has recently jumped to its highest level in two years. The gauge of confidence increased to 114.8 in January from December’s revised figure of 108. Consumer sentiment improved across all ages, but it was maximum among consumers 55 and above.
The survey further conveyed that the gauge of the present business scenario soared to its highest level since March 2020, and the future measure of business conditions rose to a six-month high.
Additionally, the consumer sentiment index of the University of Michigan came in at 78.8 last month, falling from 69.7 in the prior month. The index has hit its highest level since July 2021 and is up 21.4% from last year. The index has now posted its largest increase, on a two-month basis, since 1991, per the survey’s director Joanne Hsu.
The index has surged more than 60% from the record low in June 2022. Encouragingly, the survey’s outlook on inflation for the current year dropped to 2.9% from December’s reading of 3.1%.
Hence, consumers are more self-assured about their financial conditions, and with prices of essential commodities and services ebbing, consumer spending is all set to pick up. It had, in reality, already risen substantially during the holiday shopping season (read more: 5 Stocks to Gain From Healthy End-of-Year Retail Sales).
Now, with consumer outlays increasing, consumer discretionary stocks are positioned to benefit. The demand for discretional products and services is expected to improve, which calls for investing in stocks such as Acushnet (GOLF - Free Report) , Royal Caribbean Cruises (RCL - Free Report) , Carnival (CCL - Free Report) , Universal Technical Institute (UTI - Free Report) and Corsair Gaming (CRSR - Free Report) .
These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy) as well as 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.
Acushnet designs, develops, manufactures and distributes golf products. Acushnet has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for GOLF’s current-year earnings has moved up 0.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 8%.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 5.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 40.5%.
Carnival operates as a cruise and vacation company. Carnival has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for CCL’s current-year earnings has moved up 9.9% over the past 60 days. The company’s expected earnings growth rate for the current quarter is 67.3% (read more: 2 Top Cruise Stocks Worth a Buy in February).
Universal Technical Institute provides technical education training in automotive, diesel, collision repair and refinishing. Universal Technical Institute has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for UTI’s current-year earnings has moved up 12.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 376.9%.
Corsair Gaming designs, markets and distributes gaming and streaming peripherals, components and systems. Corsair Gaming has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for CRSR’s next-year earnings has moved up 2.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 216.7%.
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5 Stocks to Gain as Consumers Feel Confident About the Economy
Americans are at the moment upbeat about economic growth as the jobs market looks firm and inflation continues to cool down. Consumers now expect better business conditions to prevail in the near term and are willing to open up their wallets as they remain confident about their well-being.
Consumers’ sentiments brightened across all age groups as steady economic progress squashed recession fearmongering.
The Conference Board stated that the consumer confidence index has recently jumped to its highest level in two years. The gauge of confidence increased to 114.8 in January from December’s revised figure of 108. Consumer sentiment improved across all ages, but it was maximum among consumers 55 and above.
The survey further conveyed that the gauge of the present business scenario soared to its highest level since March 2020, and the future measure of business conditions rose to a six-month high.
Additionally, the consumer sentiment index of the University of Michigan came in at 78.8 last month, falling from 69.7 in the prior month. The index has hit its highest level since July 2021 and is up 21.4% from last year. The index has now posted its largest increase, on a two-month basis, since 1991, per the survey’s director Joanne Hsu.
The index has surged more than 60% from the record low in June 2022. Encouragingly, the survey’s outlook on inflation for the current year dropped to 2.9% from December’s reading of 3.1%.
Hence, consumers are more self-assured about their financial conditions, and with prices of essential commodities and services ebbing, consumer spending is all set to pick up. It had, in reality, already risen substantially during the holiday shopping season (read more: 5 Stocks to Gain From Healthy End-of-Year Retail Sales).
Now, with consumer outlays increasing, consumer discretionary stocks are positioned to benefit. The demand for discretional products and services is expected to improve, which calls for investing in stocks such as Acushnet (GOLF - Free Report) , Royal Caribbean Cruises (RCL - Free Report) , Carnival (CCL - Free Report) , Universal Technical Institute (UTI - Free Report) and Corsair Gaming (CRSR - Free Report) .
These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy) as well as 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.
Acushnet designs, develops, manufactures and distributes golf products. Acushnet has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for GOLF’s current-year earnings has moved up 0.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 8%.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 5.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 40.5%.
Carnival operates as a cruise and vacation company. Carnival has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for CCL’s current-year earnings has moved up 9.9% over the past 60 days. The company’s expected earnings growth rate for the current quarter is 67.3% (read more: 2 Top Cruise Stocks Worth a Buy in February).
Universal Technical Institute provides technical education training in automotive, diesel, collision repair and refinishing. Universal Technical Institute has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for UTI’s current-year earnings has moved up 12.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 376.9%.
Corsair Gaming designs, markets and distributes gaming and streaming peripherals, components and systems. Corsair Gaming has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for CRSR’s next-year earnings has moved up 2.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 216.7%.