4 Stocks to Buy as Cooling Inflation Bolsters Rut Cut Hopes

Economic Overview - Wall Street has resumed its rally, recovering losses from earlier fears of a recession, driven by declining inflation data [1][3] - The consumer price index (CPI) increased by 0.2% month-over-month in July, aligning with expectations, while year-over-year CPI rose 2.9%, below the 3% consensus estimate [2] - The producer price index (PPI) rose 0.1% sequentially in July, lower than the expected 0.2% increase, with year-over-year PPI growth at 2.2%, down from 2.7% in June [2] Market Sentiment - Softer CPI and PPI data have eased recession fears, leading to increased investor confidence in potential Federal Reserve rate cuts starting in September [3] - Current market pricing indicates a 55% probability of a 50-basis point rate cut in September, which is favorable for growth stocks, particularly in the tech and consumer discretionary sectors [3] Investment Opportunities - Four consumer discretionary stocks have been identified with strong potential for 2024: DoubleDown Interactive Co., Ltd. (DDI), Acme United Corporation (ACU), Traeger, Inc. (COOK), and Cinemark Holdings, Inc. (CNK) [4] - DoubleDown Interactive is expected to have a 15.8% earnings growth rate for the current year, with a 13.5% improvement in earnings estimates over the past 60 days, holding a Zacks Rank 1 [4] - Acme United Corporation has a projected earnings growth rate of 24.7% for the current year, with a 9.9% increase in earnings estimates over the past 60 days, also holding a Zacks Rank 1 [5] - Traeger, Inc. is expected to see earnings growth of over 100% for the current year, with a 100% improvement in earnings estimates over the past 60 days, carrying a Zacks Rank 2 [6] - Cinemark Holdings has a projected earnings growth rate of 0.8% for the current year, with a 22.7% increase in earnings estimates over the past 60 days, holding a Zacks Rank 2 [6]