5 Discretionary Stocks to Buy on Solid Rebound in Consumer Confidence

Economic Overview - U.S. consumers have regained confidence in the economy following a trade truce between the United States and China, leading to a sharp market rebound [1][2] - Consumer confidence jumped to 98 in May, up 12.3 points from April, significantly exceeding the consensus estimate of 87 [4] - The present situation index increased by 4.8 points to 135.9, while the expectations index surged by 17.4 points to 72.8 [5] Consumer Sentiment - Positive sentiment is attributed to the easing of trade tensions, with 44% of investors believing stocks will rise over the next 12 months, a 6.4% increase from April [5][6] - The labor market outlook improved, with 19.2% expecting more job availability in the next six months [5] Stock Recommendations - Recommended consumer discretionary stocks include Netflix, Inc. (NFLX), JAKKS Pacific, Inc. (JAKK), Kontoor Brands, Inc. (KTB), Fox Corporation (FOX), and Charter Communications, Inc. (CHTR) due to positive earnings estimate revisions [2][3] - Each of these stocks carries a Zacks Rank 2 (Buy) or 1 (Strong Buy) [3] Company Insights - Netflix, Inc. (NFLX): Expected earnings growth rate of 27.7% for the current year, with a 3% improvement in earnings estimates over the past 60 days [8][9] - JAKKS Pacific, Inc. (JAKK): Expected earnings growth rate of 12.7%, with a 3.1% improvement in earnings estimates [10][11] - Kontoor Brands, Inc. (KTB): Expected earnings growth rate of 9.6%, with a 2.9% improvement in earnings estimates [12][13] - Fox Corporation (FOX): Expected earnings growth rate of 32.36%, with a 2% improvement in earnings estimates [14] - Charter Communications, Inc. (CHTR): Expected earnings growth rate of 13.2%, with a 4.5% improvement in earnings estimates [15][16]