4 Discretionary Stocks to Buy on Robust Consumer Spending

Economic Overview - Americans are experiencing increased personal income and consumer spending as inflation pressures ease, complicating the Federal Reserve's efforts to control inflation [1] - The Commerce Department reported a $66.5 billion (0.3%) increase in personal income and a $145.5 billion (0.8%) rise in consumer spending in February [1] - The personal saving rate was recorded at 3.6% with total personal savings at $745.7 billion in February [1] Inflation and Federal Reserve Actions - The PCE price index rose 0.3% month over month in February, with core PCE also increasing by 0.3% [2] - Year-over-year, PCE increased by 2.5% and core PCE by 2.8% [2] - The Federal Reserve has maintained its benchmark policy rate at 5.25-5.5% since July 2023, after a series of rate hikes totaling 525 basis points since March 2022 [2] - The Fed is preparing to cut interest rates at least three times this year, which may boost consumer spending [2] Consumer Discretionary Stocks - Five consumer discretionary stocks have been identified with strong potential for 2024, all showing positive earnings estimate revisions [3] - Crocs, Inc. (CROX) has an expected earnings growth rate of 2.9% with a Zacks Rank 2 [3] - Interface, Inc. (TILE) has an expected earnings growth rate of 2% and a Zacks Rank 1, with a 32.5% improvement in earnings estimates [4] - Royal Caribbean Cruises Ltd. (RCL) is projected to have a 47.9% earnings growth rate and a Zacks Rank 1, with a 9.4% improvement in earnings estimates [4] - American Woodmark Corporation (AMWD) has an expected earnings growth rate of 14.4% and a Zacks Rank 1, with a 3% improvement in earnings estimates [5]