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Buy 5 Consumer Discretionary Stocks With Solid Upside Potential for Q4
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Key Takeaways
The Fed's rate cuts are poised to lift growth sectors like consumer discretionary in Q4.
Five consumer discretionary stocks - CCL, NCLH, LVS, LRN, and PLNT - have solid short-term upside.
These firms benefit from strong demand, higher earnings forecasts, and improving price targets.
The consumer discretionary sector witnessed moderate growth in the first three quarters of 2025, despite a strong rally in U.S. stock markets. The situation is likely to improve in the fourth quarter.
Structurally, the consumer discretionary sector is growth-oriented. The share prices of these companies grow over a long time period. Growth sectors are sensitive to the movement of market interest rates and are inversely related.
The Fed cut the benchmark lending rate by 25 basis points in September for the first time in 2025. The central bank’s dot-plot showed that two more rate cuts of 25 basis points each are expected this year.
The CME FedWatch interest rate derivative tool currently shows a 95.7% probability that the Fed will reduce the Fed fund rate by 25 basis points in October and an 86.5% probability that the central bank will further reduce the rate by another 0.25% in December.
A low-interest rate will reduce the discount, thereby raising the net present value of investment in growth stocks. Consequently, a low-interest rate regime will benefit growth sectors such as consumer discretionary, technology and cryptocurrency.
Here, we recommend five consumer discretionary stocks with a favorable Zacks Rank that have solid price upside potential in the short term. Investment in these stocks should enhance your portfolio returns in the fourth quarter.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Carnival Corp. & plc
Zacks Rank #1 Carnival has been benefiting from resilient travel demand, stronger booking trends, higher onboard spending, and disciplined cost management. CCL’s solid execution across these areas led management to raise its full-year 2025 guidance, supported by operational efficiencies and strategic growth initiatives. CCL is also prioritizing fleet optimization, new ship launches, and targeted marketing investments to capture rising global demand.
Carnival is aggressively expanding its destination footprint to enhance guest experiences and drive high-margin revenue growth. CCL continues to invest in modern, guest-centric ships to fuel long-term demand.
AIDAdiva, the first vessel completed under the AIDA Evolution refurbishment program, has seen strong post-upgrade performance, prompting six additional AIDA ships to undergo similar transformations. CCL also ordered two newbuilds for AIDA, scheduled for delivery in 2030 and 2032.
Excellent Short-Term Upside for CCL Stock
Carnival has an expected revenue and earnings growth rate of 6.4% and 49.3%, respectively, for the current year (ending November 2025). The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 30 days.
CCL has an expected revenue and earnings growth rate of 4.4% and 12.4%, respectively, for the next year (ending November 2026). The Zacks Consensus Estimate for next-year earnings has improved 4.8% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 25.8% from the last closing price of $28.09. The brokerage target price is currently in the range of $26-$43. This indicates a maximum upside of 53.1% and no downside.
Norwegian Cruise Line Holdings Ltd.
Zacks Rank #1 Norwegian Cruise Line is benefiting from strong consumer demand, solid onboard spending and benefits realized from strategic growth initiatives. Bookings were strong across all three brands, driving advance ticket sales to a record $4 billion at the end of the second quarter of 2025.
NCLH’s focus on fleet management strategy, including new ship additions and existing fleet enhancements, is encouraging for its long-term prospects. NCLH is investing in systems to support top-line growth. NCLH stated that a new revenue management system is under development, with the first phase expected to be completed by the end of 2025. Early benefits are anticipated by late 2026.
Enormous Short-Term Upside for NCLH Shares
Norwegian Cruise Line has an expected revenue and earnings growth rate of 6% and 14.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last seven days.
NCLH has an expected revenue and earnings growth rate of 10.2% and 26.6%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.1% over the last seven days.
The short-term average price target of brokerage firms for the stock represents an increase of 32.7% from the last closing price of $23.04. The brokerage target price is currently in the range of $24-$43. This indicates a maximum upside of 86.6% and no downside.
Las Vegas Sands Corp.
Zacks Rank #1 Las Vegas Sands is benefiting from strong travel demand and improved operating conditions in Macao and Singapore. LVS reported solid progress on its strategic goals and continued to focus on driving growth in both regions through ongoing capital investments.
In Singapore, strong performance at Marina Bay Sands was supported by new suite offerings and rising travel across Asia. LVS remains focused on expanding non-gaming opportunities in Macao.
Attractive Short-Term Upside for LVS Stock
Las Vegas Sands has an expected revenue and earnings growth rate of 7.7% and 17.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.
LVS has an expected revenue and earnings growth rate of 4.3% and 7.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.4% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 30.4% from the last closing price of $46.47. The brokerage target price is currently in the range of $50-$73.50. This indicates a maximum upside of 58.2% and no downside.
Stride Inc.
Zacks Rank #2 Stride is a premier provider of K-12 education for students, schools and districts, including career learning services through middle and high school curriculum. For adult learners, LRN delivers professional skills training in healthcare and technology, as well as staffing and talent development.
LRN also provides career learning products and services focused on developing skills to enter industries, including information technology, health care, and business, and operates tuition-based private schools.
Impressive Short-Term Upside for LRN Shares
Stride has an expected revenue and earnings growth rate of 10.7% and 8.8%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 30 days.
LRN has an expected revenue and earnings growth rate of 7.5% and 10.2%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next-year earnings has improved 4.2% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 18.5% from the last closing price of $144.99. The brokerage target price is currently in the range of $159-$186. This indicates a maximum upside of 28.3% and no downside.
Planet Fitness Inc.
Zacks Rank #2 Planet Fitness is one of the leading franchisors and operators of fitness centers in the United States. PLNT has been benefiting from higher royalties, new club openings and new member acquisitions. Besides, the effective execution of the four strategic imperatives and increasing Black Card memberships are additional growth catalysts.
PLNT ended the second quarter with a membership base of about 20.8 million members and a global club count of more than 2,762 clubs, witnessing an 8.2% year-over-year increase in system-wide same-club sales. Moving through 2025, PLNT aims to shift from a divisional structure to a fit-for-strategy operating model to ensure sustainable long-term growth.
Lucrative Short-Term Upside for PLNT Stock
Planet Fitness has an expected revenue and earnings growth rate of 10.1% and 13.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 90 days.
PLNT has an expected revenue and earnings growth rate of 10.8% and 18%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.3% over the last 60 days.
The short-term average price target of brokerage firms for the stock represents an increase of 29.2% from the last closing price of $92.67. The brokerage target price is currently in the range of $97-$175. This indicates a maximum upside of 88.8% and no downside.
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Buy 5 Consumer Discretionary Stocks With Solid Upside Potential for Q4
Key Takeaways
The consumer discretionary sector witnessed moderate growth in the first three quarters of 2025, despite a strong rally in U.S. stock markets. The situation is likely to improve in the fourth quarter.
Structurally, the consumer discretionary sector is growth-oriented. The share prices of these companies grow over a long time period. Growth sectors are sensitive to the movement of market interest rates and are inversely related.
The Fed cut the benchmark lending rate by 25 basis points in September for the first time in 2025. The central bank’s dot-plot showed that two more rate cuts of 25 basis points each are expected this year.
The CME FedWatch interest rate derivative tool currently shows a 95.7% probability that the Fed will reduce the Fed fund rate by 25 basis points in October and an 86.5% probability that the central bank will further reduce the rate by another 0.25% in December.
A low-interest rate will reduce the discount, thereby raising the net present value of investment in growth stocks. Consequently, a low-interest rate regime will benefit growth sectors such as consumer discretionary, technology and cryptocurrency.
Here, we recommend five consumer discretionary stocks with a favorable Zacks Rank that have solid price upside potential in the short term. Investment in these stocks should enhance your portfolio returns in the fourth quarter.
These companies are: Carnival Corporation & plc (CCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) , Stride Inc. (LRN - Free Report) and Planet Fitness Inc. (PLNT - Free Report) . Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Carnival Corp. & plc
Zacks Rank #1 Carnival has been benefiting from resilient travel demand, stronger booking trends, higher onboard spending, and disciplined cost management. CCL’s solid execution across these areas led management to raise its full-year 2025 guidance, supported by operational efficiencies and strategic growth initiatives. CCL is also prioritizing fleet optimization, new ship launches, and targeted marketing investments to capture rising global demand.
Carnival is aggressively expanding its destination footprint to enhance guest experiences and drive high-margin revenue growth. CCL continues to invest in modern, guest-centric ships to fuel long-term demand.
AIDAdiva, the first vessel completed under the AIDA Evolution refurbishment program, has seen strong post-upgrade performance, prompting six additional AIDA ships to undergo similar transformations. CCL also ordered two newbuilds for AIDA, scheduled for delivery in 2030 and 2032.
Excellent Short-Term Upside for CCL Stock
Carnival has an expected revenue and earnings growth rate of 6.4% and 49.3%, respectively, for the current year (ending November 2025). The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 30 days.
CCL has an expected revenue and earnings growth rate of 4.4% and 12.4%, respectively, for the next year (ending November 2026). The Zacks Consensus Estimate for next-year earnings has improved 4.8% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 25.8% from the last closing price of $28.09. The brokerage target price is currently in the range of $26-$43. This indicates a maximum upside of 53.1% and no downside.
Norwegian Cruise Line Holdings Ltd.
Zacks Rank #1 Norwegian Cruise Line is benefiting from strong consumer demand, solid onboard spending and benefits realized from strategic growth initiatives. Bookings were strong across all three brands, driving advance ticket sales to a record $4 billion at the end of the second quarter of 2025.
NCLH’s focus on fleet management strategy, including new ship additions and existing fleet enhancements, is encouraging for its long-term prospects. NCLH is investing in systems to support top-line growth. NCLH stated that a new revenue management system is under development, with the first phase expected to be completed by the end of 2025. Early benefits are anticipated by late 2026.
Enormous Short-Term Upside for NCLH Shares
Norwegian Cruise Line has an expected revenue and earnings growth rate of 6% and 14.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last seven days.
NCLH has an expected revenue and earnings growth rate of 10.2% and 26.6%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.1% over the last seven days.
The short-term average price target of brokerage firms for the stock represents an increase of 32.7% from the last closing price of $23.04. The brokerage target price is currently in the range of $24-$43. This indicates a maximum upside of 86.6% and no downside.
Las Vegas Sands Corp.
Zacks Rank #1 Las Vegas Sands is benefiting from strong travel demand and improved operating conditions in Macao and Singapore. LVS reported solid progress on its strategic goals and continued to focus on driving growth in both regions through ongoing capital investments.
In Singapore, strong performance at Marina Bay Sands was supported by new suite offerings and rising travel across Asia. LVS remains focused on expanding non-gaming opportunities in Macao.
Attractive Short-Term Upside for LVS Stock
Las Vegas Sands has an expected revenue and earnings growth rate of 7.7% and 17.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.
LVS has an expected revenue and earnings growth rate of 4.3% and 7.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.4% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 30.4% from the last closing price of $46.47. The brokerage target price is currently in the range of $50-$73.50. This indicates a maximum upside of 58.2% and no downside.
Stride Inc.
Zacks Rank #2 Stride is a premier provider of K-12 education for students, schools and districts, including career learning services through middle and high school curriculum. For adult learners, LRN delivers professional skills training in healthcare and technology, as well as staffing and talent development.
LRN also provides career learning products and services focused on developing skills to enter industries, including information technology, health care, and business, and operates tuition-based private schools.
Impressive Short-Term Upside for LRN Shares
Stride has an expected revenue and earnings growth rate of 10.7% and 8.8%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 30 days.
LRN has an expected revenue and earnings growth rate of 7.5% and 10.2%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next-year earnings has improved 4.2% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 18.5% from the last closing price of $144.99. The brokerage target price is currently in the range of $159-$186. This indicates a maximum upside of 28.3% and no downside.
Planet Fitness Inc.
Zacks Rank #2 Planet Fitness is one of the leading franchisors and operators of fitness centers in the United States. PLNT has been benefiting from higher royalties, new club openings and new member acquisitions. Besides, the effective execution of the four strategic imperatives and increasing Black Card memberships are additional growth catalysts.
PLNT ended the second quarter with a membership base of about 20.8 million members and a global club count of more than 2,762 clubs, witnessing an 8.2% year-over-year increase in system-wide same-club sales. Moving through 2025, PLNT aims to shift from a divisional structure to a fit-for-strategy operating model to ensure sustainable long-term growth.
Lucrative Short-Term Upside for PLNT Stock
Planet Fitness has an expected revenue and earnings growth rate of 10.1% and 13.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 90 days.
PLNT has an expected revenue and earnings growth rate of 10.8% and 18%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.3% over the last 60 days.
The short-term average price target of brokerage firms for the stock represents an increase of 29.2% from the last closing price of $92.67. The brokerage target price is currently in the range of $97-$175. This indicates a maximum upside of 88.8% and no downside.