We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Buy These 4 Stocks as Consumer Spending Rises in October
Read MoreHide Full Article
U.S. gross domestic product (GDP) grew more than expected in October primarily boosted by strong consumer spending. Continuous rise in consumer spending has kept the economy afloat.
What’s more, the National Retail Federation (NRF) has predicted a solid rise in holiday sales, indicating consumers’ willingness to spend further. Thus, investing in consumer discretionary stocks seems prudent as of now.
Impressive U.S. GDP Growth
The Commerce Department on Oct 30 reported that U.S. GDP grew better than expected in the third quarter, at an annualized rate of 1.9%. Though the rate was slightly lower than the second quarter’s pace of 2%, it was higher than the consensus estimate of 1.6%.
This better-than-expected economic data was a result of continued consumer spending and government expenditures. Personal consumption expenditure rose at a 2.9% annualized rate and government spending grew at 2%.
Consumer spending accounts for nearly 70% of U.S. economic activity. This includes American’s spending on new autos, food, health care, housing and other discretionary products. Overall, strong American consumer sentiment is driving the record-long domestic expansion, in spite of headwinds from a slower manufacturing economy.
Strong NRF Forecasts on Holiday Sales
The continued rise in consumer spending in October and NRF’s strong forecast indicate that consumer sentiment will remain robust and spending will continue to rise. This in turn will lead the U.S. economy to rise in the last two months of this year.
On Oct 3, NRF forecast that despite the uncertain economic environment and prevailing trade warthere will be a rise in holiday spending. As per the trade associations’ prediction, there will be an increase of between 3.8% and 4.2% in holiday season sales. NRF expects retail sales in November and December to rise between $727.9 billion and $730.7 billion.
A bigger boost can be expected in e-commerce in particular, as online sales predicted by NRF can grow between 11% and 14%, or between $16.2 billion to $166.9 billion. On the other hand, retailers are looking for alternative options to bypass the additional cost from a rise in tariffs. This will keep the cost of goods in check and attract consumers to buy more.
Grab These 5 Stocks Now
With consumer spending expected to increase in the near term, we have selected four solid stocks from the consumer discretionary sector. These companies flaunt a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs, Inc. (CROX - Free Report) is a publicly traded company that designs, develops, manufactures, markets and distributes casual lifestyle footwear and accessories for men, women and children. The company’s expected earnings growth rate for the current year is 80.2%, which is above the industry’s projected rally of 4.7%. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the past 60 days.
Crocs has outperformed the Textile - Apparelindustry over the past one-year period (+66% vs -8.8%).
Sony Corporation is a publicly traded company that designs, develops, produces and sells electronic equipment, instruments, and devices for the consumer, professional and industrial markets globally. The company’s expected earnings growth rate for the next year is 12.8%, which is above the industry’s projected rally of 11.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 60 days.
Sony has outperformed the Audio Video Productionindustry over the past one-year period (+13.3% vs +9.5%).
Deckers Outdoor Corporation (DECK - Free Report) is a publicly traded company that designs, markets, and distributes footwear, apparel and accessories for casual lifestyle use and high performance activities. The company’s expected earnings growth rate for the current year is 2.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the past 60 days.
Deckers Outdoor has outperformed the Shoes and Retail Apparelindustry over the quarter-to-date period (+3.8% vs -2.7%).
Guess', Inc. (GES - Free Report) is a publicly traded company that designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women and children. The company’s expected earnings growth rate for the current year is 37.8%, which is above the industry’s projected rally of 4.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 60 days.
Guess’ has outperformed the Textile - Apparelindustry over the past three month period (+1.8% vs +1.4%).
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.
Image: Bigstock
Buy These 4 Stocks as Consumer Spending Rises in October
U.S. gross domestic product (GDP) grew more than expected in October primarily boosted by strong consumer spending. Continuous rise in consumer spending has kept the economy afloat.
What’s more, the National Retail Federation (NRF) has predicted a solid rise in holiday sales, indicating consumers’ willingness to spend further. Thus, investing in consumer discretionary stocks seems prudent as of now.
Impressive U.S. GDP Growth
The Commerce Department on Oct 30 reported that U.S. GDP grew better than expected in the third quarter, at an annualized rate of 1.9%. Though the rate was slightly lower than the second quarter’s pace of 2%, it was higher than the consensus estimate of 1.6%.
This better-than-expected economic data was a result of continued consumer spending and government expenditures. Personal consumption expenditure rose at a 2.9% annualized rate and government spending grew at 2%.
Consumer spending accounts for nearly 70% of U.S. economic activity. This includes American’s spending on new autos, food, health care, housing and other discretionary products. Overall, strong American consumer sentiment is driving the record-long domestic expansion, in spite of headwinds from a slower manufacturing economy.
Strong NRF Forecasts on Holiday Sales
The continued rise in consumer spending in October and NRF’s strong forecast indicate that consumer sentiment will remain robust and spending will continue to rise. This in turn will lead the U.S. economy to rise in the last two months of this year.
On Oct 3, NRF forecast that despite the uncertain economic environment and prevailing trade warthere will be a rise in holiday spending. As per the trade associations’ prediction, there will be an increase of between 3.8% and 4.2% in holiday season sales. NRF expects retail sales in November and December to rise between $727.9 billion and $730.7 billion.
A bigger boost can be expected in e-commerce in particular, as online sales predicted by NRF can grow between 11% and 14%, or between $16.2 billion to $166.9 billion. On the other hand, retailers are looking for alternative options to bypass the additional cost from a rise in tariffs. This will keep the cost of goods in check and attract consumers to buy more.
Grab These 5 Stocks Now
With consumer spending expected to increase in the near term, we have selected four solid stocks from the consumer discretionary sector. These companies flaunt a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs, Inc. (CROX - Free Report) is a publicly traded company that designs, develops, manufactures, markets and distributes casual lifestyle footwear and accessories for men, women and children. The company’s expected earnings growth rate for the current year is 80.2%, which is above the industry’s projected rally of 4.7%. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the past 60 days.
Crocs has outperformed the Textile - Apparelindustry over the past one-year period (+66% vs -8.8%).
Sony Corporation is a publicly traded company that designs, develops, produces and sells electronic equipment, instruments, and devices for the consumer, professional and industrial markets globally. The company’s expected earnings growth rate for the next year is 12.8%, which is above the industry’s projected rally of 11.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 60 days.
Sony has outperformed the Audio Video Productionindustry over the past one-year period (+13.3% vs +9.5%).
Deckers Outdoor Corporation (DECK - Free Report) is a publicly traded company that designs, markets, and distributes footwear, apparel and accessories for casual lifestyle use and high performance activities. The company’s expected earnings growth rate for the current year is 2.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the past 60 days.
Deckers Outdoor has outperformed the Shoes and Retail Apparelindustry over the quarter-to-date period (+3.8% vs -2.7%).
Guess', Inc. (GES - Free Report) is a publicly traded company that designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women and children. The company’s expected earnings growth rate for the current year is 37.8%, which is above the industry’s projected rally of 4.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 60 days.
Guess’ has outperformed the Textile - Apparelindustry over the past three month period (+1.8% vs +1.4%).
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>