Buy 4 Discretionary Stocks as Rate Cut Hopes Rise on Easing Inflation

Economic Overview - The Federal Reserve is unlikely to implement a rate cut in January, having indicated only one potential cut in its last meeting, but investors are hopeful for more cuts following recent economic data showing easing inflation in late 2025 [1][7] - High inflation has been a significant challenge for the Federal Reserve, compounded by a shrinking labor market raising concerns about economic weakness; however, recent data indicates that inflation eased in November while the labor market remains stable [2][4] Inflation Data - The Bureau of Labor Statistics reported that the consumer price index (CPI) rose by 0.2% in November, lower than the expected 0.3% increase; year-over-year, CPI climbed 2.7%, below the forecast of 3.1% [4] - Core CPI, excluding food and energy, also increased by 0.2% sequentially and 2.6% year-over-year, both figures beating consensus estimates of 0.3% and 2.8% respectively [5] - Food prices increased by 2.6% year-over-year, while shelter costs, which make up one-third of the CPI, rose by 3%; however, shelter costs have eased recently, suggesting inflation may be on track to meet the Fed's 2% target [6] Consumer Discretionary Stocks - Four consumer discretionary stocks are recommended for purchase: Amer Sports, Inc. (AS), Cimpress plc (CMPR), Planet Fitness, Inc. (PLNT), and Airbnb, Inc. (ABNB) due to positive earnings estimate revisions and favorable market conditions [2][10] - Amer Sports, Inc. has an expected earnings growth rate of 97.9% for the current year, with a Zacks Consensus Estimate improvement of 10.7% over the last 60 days, currently holding a Zacks Rank 1 [8] - Cimpress plc is expected to see over 100% earnings growth this year, with an 8.3% improvement in the Zacks Consensus Estimate over the past 60 days, currently holding a Zacks Rank 2 [11] - Planet Fitness, Inc. has an expected earnings growth rate of 16.2% for the current year, with a 0.7% improvement in the Zacks Consensus Estimate over the last 60 days, currently holding a Zacks Rank 2 [12][13] - Airbnb, Inc. has an expected earnings growth rate of 1.2% for the current year, with a 0.2% improvement in the Zacks Consensus Estimate over the last 60 days, currently holding a Zacks Rank 2 [14]