5 Top Ranked Stocks To Buy As Consumer Spending Expands

Previously, it has also been utilized by Janet Yellen to gauge the unemployment rate. Leading economists believe that its current level should signify that the economy is nearing full employment. Needless to say, such a state of affairs will only spur further wage gains and consequently higher consumer expenditure.

Our Choices

Fresh data on consumer spending has signaled that discernible improvements are taking place on this front. A concurrent increase in income levels also bodes well for consumer discretionary items.

Investing in stocks benefiting from such trends looks like a prudent option at this point. However, picking winning stocks may be difficult.

This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score. 

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM score. 

Summer Infant, Inc. (SUMR - Free Report) is a designer, marketer and distributor of branded durable juvenile health, safety and wellness products, which are sold principally to large U.S. retailers.

SP Plus has a VGM Score of A. The company has expected earnings growth of 42.9% for the current year. Its earnings estimate for the current year has improved by 11.1% over the last 30 days. The stock has returned 17% over the last one year, outperforming the Zacks Consumer Products - Discretionaryindustry, which has lost 4.7% over the same period.

SodaStream International Ltd. (SODA - Free Report) is engaged in the manufacture, sale and distribution of home beverage carbonation systems

SodaStream has a VGM Score of A. The company has expected earnings growth of 21% for the current year. Its earnings estimate for the current year has improved by 7.5% over the last 30 days. The stock has returned 156.8% over the last one year, outperforming the Zacks Consumer Products - Discretionaryindustry, which has lost 4.7% over the same period.

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