Stocks Performance as Economy Grows

Consumers may be gearing up for a resurgence,. Despite a tough year for consumer stocks overall, the Consumer Discretionary Select Sector SPDR ETF, buoyed by heavyweights like Amazon and Tesla, has seen a substantial rise. However, the Invesc S&P 500 Equal Weight Consumer Discretionary ETF, which gives less weight to these giants in favor of firms such as Garmin and Starbucks, has shown modest gains.

Recent CPI data suggests slowing inflation, hinting at steady economic activity and potentially more discretionary spending. This shift could benefit consumer discretionary stocks beyond the usual tech giants. Evercore analysts might be looking at undervalued Russell 1000 consumer stocks with positive earnings revisions for 2024. Noteworthy mentions include D.R. Horton, General Motors, MGM Resorts, and Williams-Sonoma.

Expedia Group stands out with its share price below its five-year average despite improved earnings outlook for 2024, suggesting potential for growth. With a strong third quarter, driven by bookings and sales surpassing expectations, and proactive share buybacks, Expedia’s financial health looks steady.

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Source: https://www.barrons.com/articles/consumer-discretionary-stocks-to-buy-b3014a12?mod=md_stockoverview_news