Year 2016 is coming to an end. Though it began on a good note, a host of global issues, especially worries in China, were a concern. Later, the Brexit storm created a rippling effect on the economy and heightened market volatility. The Presidential elections and the rate hike uncertainty during September also left investors jittery. However, the U.S. economy continued to withstand all the blows.

The recent increase of benchmark interest rates by the Federal Reserve by a quarter-point to a range of 0.25%−0.50% indicates that the U.S. economy is gaining momentum with inflation gradually edging toward the desired 2% target, and the job market is showing strength.

The improving economy was also supported by the recent GDP rate provided by the Commerce Department in consumer spending for the third quarter. GDP rose at a 3.5% annualized rate in the three months ended in September, up from the second-quarter anemic increase of 1.4% and better than a 3.2% expansion in the second estimate.

Consumer confidence – a key determinant of the economy’s health – also rebounded strongly during the month of November to hit a nine-year high, after a dismal show in October. Further, the national factory and non-manufacturing activity indices also jumped in November, signaling optimism over the health of the economy.

Undoubtedly, the economy is in good shape and consumer spending is likely to improve ahead, given an improving labor market and a gradual rise in wages.

In fact, the encouraging data are well reflected in the three key U.S. indexes, which have closed in positive territory so far this year. The Dow Jones Industrial Average (DJI) increased 14.3%, to close at 19,918.88. The S&P 500 rose 10.6% to close at 2,260.96, while Nasdaq grew 15.5% to 67.21 on a year-to-date basis.

However, we understand that the U.S. economy is not fully immune to global uncertainties, which could limit growth potential. Further, it remains to be seen how Trump’s revolutionary ideas are going to impact the economy. 

In such a scenario, it will be better to focus on the consumer sector, which has traditionally been a safe haven for investors who are apprehensive about a volatile and uncertain market.

Here we have highlighted four consumer stocks, which have outperformed the market’s performance and gained more than 100% so far this year. Further, these stocks carry a VGM score of either ‘A’ or ‘B’ along with a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Picks

SodaStream International Ltd. (SODA - Free Report)

Airport City, Israel-based SodaStream International manufactures and sells home beverage carbonation systems. This Zacks Rank #2 stock has performed impressively, with its shares shooting up 150.6% on a year-to-date basis and crushing the Zacks categorized Consumer Products-Miscellaneous Discretionary industry’s growth of 15.9%. The company also carries a VGM Score of “B.” Estimates for 2016 and 2017 increased 47.4% and 36.6%, respectively, over the past 60 days.

Intrawest Resorts Holdings, Inc. (SNOW - Free Report)

We recommend investing in Intrawest, which operates as a mountain resort, adventure, and real estate company in North America. This Denver, CO-based company has surged 134.8% on a year-to-date basis, outperforming the Zacks Categorized Hotel & Motels industry’s 28.6% gain. Estimates have also been rising 3.3% and 9.5% for the stock for fiscal 2017 and fiscal 2018, respectively over the past 60 days. The Zacks Rank #2 stock also carries a VGM Score of “B,” which makes it attractive.

(Want to find a winning consumer stock for 2017? Check out our new Zacks Top 10 Stocks for 2017, which is hand-picked from 4,400 stocks covered by the Zacks Rank. Be one of the first to see the 2017 list>>).

Town Sports International Holdings, Inc. (CLUB - Free Report)

NY-based Town Sports operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The stock holds a Zacks Rank #2 and estimates have also been improving since the past 60 days.

With a VGM Score of “A,” the company’s shares are up 126.1% on a year-to-date basis. Additionally, it has outperformed the Zacks Categorized Leisure & Recreation Services industry, which slipped 5.0%.

Central Garden & Pet Company (CENT - Free Report)

You can also add Walnut Creek, CA-based Central Garden & Pet Company, which produces and markets products for the pet, and lawn and garden supplies industries in the United States. This Zacks Rank #2 company currently possesses a VGM score of ‘A' and is witnessing positive estimate revisions for fiscal 2017 over the past two months. These make it an attractive pick.

The stock is up 153.3% so far this year, outperforming the Zacks categorized Consumer Products-Miscellaneous Discretionary industry’s growth of 15.9%.