5 Discretionary Stocks to Buy as Consumer Confidence Hits 9-Month High

Core Viewpoint - U.S. consumer confidence has significantly increased due to a recent jumbo rate cut by the Federal Reserve and optimism about future interest rate cuts, indicating a positive outlook on the economy's health [1][3][5]. Consumer Confidence - The consumer confidence index rose to 108.7 in October from 99.2 in September, marking the highest level in nine months [3]. - The Present Situation Index increased by 14.2 points to 138, while the Expectations Index rose by 6.3 points to 89.1, well above the recession threshold of 80 [4]. Economic Context - Despite a cooling job market, consumer perceptions improved, contributing to the rise in confidence [5]. - The Federal Reserve's recent 50 basis point rate cut and indications of potential further cuts have bolstered consumer optimism [6][7]. Investment Opportunities - Given the positive consumer sentiment, investing in discretionary stocks is recommended, including: - American Outdoor Brands, Inc. (AOUT): Expected earnings growth rate of 59.4% with a Zacks Rank 1 [8][9]. - Crocs, Inc. (CROX): Expected earnings growth rate of 7.3% with a Zacks Rank 2 [11]. - Norwegian Cruise Line Holdings Ltd. (NCLH): Expected earnings growth rate of over 100% with a Zacks Rank 2 [14]. - Netflix, Inc. (NFLX): Expected earnings growth rate of 64.4% with a Zacks Rank 2 [17]. - Mattel, Inc. (MAT): Expected earnings growth rate of 20.3% with a Zacks Rank 2 [19].