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Buy 4 Discretionary Stocks as Rate Cut Hopes Rise on Easing Inflation
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Key Takeaways
November CPI rose less than expected, easing inflation pressures and raising hopes of multiple Fed rate cuts.
AS, CMPR, PLNT and ABNB show positive earnings estimate revisions over the past 60 days.
Easing inflation and a steady labor market are improving sentiment toward consumer discretionary stocks.
The Federal Reserve is unlikely to go for a rate cut in its January policy meeting after hinting at only one interest rate cut in its last meeting. However, investors are once again hopeful that the Fed could consider more rate cuts after fresh economic data showed that inflation eased in the final months of 2025.
High inflation has posed a major challenge for the Federal Reserve to ease its monetary policy in 2025. Also, a shrinking labor market has raised concerns about a weakening economy. However, the latest data shows not only that inflation eased in November but also that the labor market has still managed to hold its footing.
Given this scenario, we recommend buying four consumer discretionary stocks, namely, Amer Sports, Inc. (AS - Free Report) , Cimpress plc (CMPR - Free Report) , Planet Fitness, Inc. (PLNT - Free Report) and Airbnb, Inc. (ABNB - Free Report) .
The Bureau of Labor Statistics reported earlier this week that the consumer price index (CPI) rose less than expected in November. CPI increased 0.2% sequentially in November, lower than the consensus estimate of a rise of 0.3%. Year over year, CPI climbed 2.7% in November, lower than analysts’ forecast of a rise of 3.1%.
Core CPI, which excludes the volatile food and energy prices, increased 0.2% sequentially and 2.6% from the year-ago levels in November, both beating the consensus estimate of a rise of 0.3% and 2.8%, respectively.
Food prices jumped 2.6% on a year-over-year basis. Shelter costs, which account for one-third of the weighting in the index, advanced 3%. Shelter costs have eased substantially over the past few months, indicating that inflation is on track to reach the Fed’s 2% target. Over the past year, shelter prices have been a major contributor to higher inflation.
The Federal Reserve cut interest rates three times by 75 basis points last year and signaled a single rate cut this year. However, the Fed also said after its last policy meeting in December that it is confident about inflation slowing down to 2.4% by the end of 2026 and economic growth accelerating to 2.3%.
Also, the latest jobs report suggests a slowing but still steady labor market. Investors are hopeful that easing inflation may see the Federal Reserve go for two or more rate cuts this year.
4 Consumer Discretionary Stocks With Upside
Amer Sports, Inc.
Amer Sports, Inc. is a group of iconic sports and outdoor brands, including Arc'teryx, Salomon, Wilson, Peak Performance and Atomic. AS’ brands are creators of exceptional apparel, footwear, equipment, protective gear and accessories.
Amer Sports’ expected earnings growth rate for the current year is 97.9%. The Zacks Consensus Estimate for current-year earnings improved 10.7% over the last 60 days. AS currently carries a Zacks Rank #1.
Cimpress plc
Cimpress plc is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. CMPR’s product offerings include business cards, brochures and websites, e-commerce platforms, calendars, address labels, note pads and signage, among others.
Cimpress’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 8.3% over the past 60 days. CMPR currently has a Zacks Rank #2.
Planet Fitness, Inc.
Planet Fitness, Inc. is one of the leading franchisors and operators of fitness centers in the United States. As of June 30, 2025, PLNT had approximately 20.8 million members and 2,762 clubs in all 50 states of the United States, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
Planet Fitness’ expected earnings growth rate for the current year is 16.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. PLNT currently has a Zacks Rank #2.
Airbnb, Inc.
Airbnb, Inc. is a leading platform for unique stays and experiences. ABNB provides a marketplace for connecting hosts and guests online or through mobile devices to book spaces and experiences.
Airbnb’s expected earnings growth rate for the current year is 1.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ABNB currently has a Zacks Rank #2.
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Buy 4 Discretionary Stocks as Rate Cut Hopes Rise on Easing Inflation
Key Takeaways
The Federal Reserve is unlikely to go for a rate cut in its January policy meeting after hinting at only one interest rate cut in its last meeting. However, investors are once again hopeful that the Fed could consider more rate cuts after fresh economic data showed that inflation eased in the final months of 2025.
High inflation has posed a major challenge for the Federal Reserve to ease its monetary policy in 2025. Also, a shrinking labor market has raised concerns about a weakening economy. However, the latest data shows not only that inflation eased in November but also that the labor market has still managed to hold its footing.
Given this scenario, we recommend buying four consumer discretionary stocks, namely, Amer Sports, Inc. (AS - Free Report) , Cimpress plc (CMPR - Free Report) , Planet Fitness, Inc. (PLNT - Free Report) and Airbnb, Inc. (ABNB - Free Report) .
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inflation Eases in November
The Bureau of Labor Statistics reported earlier this week that the consumer price index (CPI) rose less than expected in November. CPI increased 0.2% sequentially in November, lower than the consensus estimate of a rise of 0.3%. Year over year, CPI climbed 2.7% in November, lower than analysts’ forecast of a rise of 3.1%.
Core CPI, which excludes the volatile food and energy prices, increased 0.2% sequentially and 2.6% from the year-ago levels in November, both beating the consensus estimate of a rise of 0.3% and 2.8%, respectively.
Food prices jumped 2.6% on a year-over-year basis. Shelter costs, which account for one-third of the weighting in the index, advanced 3%. Shelter costs have eased substantially over the past few months, indicating that inflation is on track to reach the Fed’s 2% target. Over the past year, shelter prices have been a major contributor to higher inflation.
The Federal Reserve cut interest rates three times by 75 basis points last year and signaled a single rate cut this year. However, the Fed also said after its last policy meeting in December that it is confident about inflation slowing down to 2.4% by the end of 2026 and economic growth accelerating to 2.3%.
Also, the latest jobs report suggests a slowing but still steady labor market. Investors are hopeful that easing inflation may see the Federal Reserve go for two or more rate cuts this year.
4 Consumer Discretionary Stocks With Upside
Amer Sports, Inc.
Amer Sports, Inc. is a group of iconic sports and outdoor brands, including Arc'teryx, Salomon, Wilson, Peak Performance and Atomic. AS’ brands are creators of exceptional apparel, footwear, equipment, protective gear and accessories.
Amer Sports’ expected earnings growth rate for the current year is 97.9%. The Zacks Consensus Estimate for current-year earnings improved 10.7% over the last 60 days. AS currently carries a Zacks Rank #1.
Cimpress plc
Cimpress plc is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. CMPR’s product offerings include business cards, brochures and websites, e-commerce platforms, calendars, address labels, note pads and signage, among others.
Cimpress’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 8.3% over the past 60 days. CMPR currently has a Zacks Rank #2.
Planet Fitness, Inc.
Planet Fitness, Inc. is one of the leading franchisors and operators of fitness centers in the United States. As of June 30, 2025, PLNT had approximately 20.8 million members and 2,762 clubs in all 50 states of the United States, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
Planet Fitness’ expected earnings growth rate for the current year is 16.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. PLNT currently has a Zacks Rank #2.
Airbnb, Inc.
Airbnb, Inc. is a leading platform for unique stays and experiences. ABNB provides a marketplace for connecting hosts and guests online or through mobile devices to book spaces and experiences.
Airbnb’s expected earnings growth rate for the current year is 1.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ABNB currently has a Zacks Rank #2.