5 Discretionary Stocks to Grab as Inflation Softens in November

Economic Outlook - The Federal Reserve cut interest rates by a quarter percentage point in December but indicated only one rate cut is expected in 2026 due to persistent high inflation [2][7] - A softer inflation reading for November has raised hopes for more rate cuts, with expectations that inflation could decline to 2.4% by the end of 2026 and economic growth could accelerate to 2.3% next year [8] Consumer Discretionary Stocks - Five consumer discretionary stocks are recommended: Amer Sports, Inc. (AS), Crocs, Inc. (CROX), Kontoor Brands, Inc. (KTB), Ralph Lauren Corporation (RL), and Roku, Inc. (ROKU) [3] - These stocks have seen positive earnings estimate revisions in the past 60 days and carry a Zacks Rank 2 (Buy), indicating potential for solid returns [4] Company-Specific Insights - Amer Sports, Inc. (AS): Expected earnings growth rate for next year is 21.5%, with current-year earnings estimates improving by 10.7% over the last 60 days [9][11] - Crocs, Inc. (CROX): Expected earnings growth rate for next year is 3.9%, with current-year earnings estimates improving by 5% over the past 60 days [12] - Kontoor Brands, Inc. (KTB): Expected earnings growth rate for next year is 5.3%, with current-year earnings estimates improving by 0.7% over the past 60 days [13] - Ralph Lauren Corporation (RL): Expected earnings growth rate for next year is 9.1%, with current-year earnings estimates improving by 0.7% over the past 60 days [14] - Roku, Inc. (ROKU): Expected earnings growth rate for the current year is over 100%, with current-year earnings estimates improving by 83.3% over the past 60 days [15]