Recent U.S. government data revealed a remarkable trend: consumer spending is strong despite high prices, inflation, and negative consumer sentiment. September's data on personal spending and outlay showed that high prices do not faze consumers. Consumers are still willing to spend on air travel, restaurant meals, hotel stays, and other expenditures, which indicate a pent-up demand from investors after an extended economic downturn due to the pandemic. This boosted consumer discretionary stocks as a potential sector play in the short term.
While this may be the case now, experts still caution that overreliance on credit can mean trouble in paradise for consumers in the near future. That is sound advice, but it doesn't mean we can’t take advantage of the short-term potential of consumer discretionary stocks boost in sales and demand. In our view, these are three of the best consumer discretionary stocks worth looking at right now.
