When we bet on a stock, we always try to hit the jackpot. But striking the right chord each time needs a fair amount of luck. Nonetheless, the current economic scenario is making it tough for investors to arrive at an investment decision. Global economic headwinds such as yet-to-recover Chinese economy, softness in the Eurozone and fluctuating commodity prices are leaving investors perplexed about which stocks to count on.

How to Identify Stocks?

One could take resort to commonly used techniques to find beaten down stocks that have the potential to recover faster than others. But this brings with it the risk of disappointment. Particularly, one could be stuck in the value trap if the hidden weakness in a selected stock is not identified. So, wouldn’t it be a safer strategy to look for stocks that are winners currently and have the potential to gain further? The new investment mantra is “buy high and sell higher”.

One should primarily look for stocks that have recently been witnessing a price increase. Actually, stocks seeing price strength of late have a high chance of carrying the momentum forward. So, a look at stocks that have already won the game and are capable of setting a new benchmark sounds rational. You can ride on the stock bandwagon hovering close to their 52-week highs and book handsome profits.

Why Consumer Discretionary Stocks?

The U.S. stock market displayed a sluggish performance at the start of the year owing to fears of overseas turmoil and plunging oil prices. But since then the market has recouped much of the losses, and consumers feel much better about the economy. The recent rebound in oil prices, increase in consumer spending, and a gradual improvement in the housing market are signals that the economy is on a recovery mode.

GDP advance estimate for the second quarter of 2016 improved at an annual rate of 1.2%, against a 0.8% rise witnessed in the preceding quarter, per the Bureau of Economic Analysis. Consumer spending, which accounts for over two-thirds of U.S. economic activity, increased 4.2% in the second quarter.

As per the Labor Department, the economy added 255,000 jobs in July. The recent job data painted a rosy picture of the labor market, indicating that the economy has absorbed seismic shocks and the market turmoil. Additionally, we note that the unemployment rate for July remaining stable at 4.9%. A preliminary survey from the University of Michigan unveils that consumer sentiment remained more or less stable in August at 90.4 versus July's final reading of 90.

Given the improvement in the job market and consumers’ appetite to spend, the trend noted is that people are now willing to shell out on discretionary items, albeit conservatively. Hence, there lies an opportunity with respect to consumer discretionary stocks which are poised to make the best of the improving economic situation.

5 Consumer Stocks to Add to Your Portfolio:

Look beyond the woebegone market and lift your spirits by adding potential winners to your portfolio that will trump all odds. More precisely, we may focus on the stocks nearing their 52-week highs backed by a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy).

SodaStream International Ltd. (SODA - Snapshot Report), which develops, manufactures, and sells home beverage carbonation systems, is a solid bet. It flaunts a Zacks Rank #1 with a long-term earnings growth rate of 11.3%. The stock closed at $29.58 yesterday, near its 52-week high of $30.70, and has surged about 81.4% year to date.

Investors can count on Monarch Casino & Resort Inc. (MCRI - Snapshot Report), which owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, NV; and the Monarch Casino Black Hawk in Black Hawk, CO. The stock sports a Zacks Rank #1 and a long-term earnings growth rate of 14%. It closed at $24.18 yesterday, near its 52-week high of $24.36.

We also suggest investing in Planet Fitness, Inc. (PLNT - Snapshot Report), which carries a Zacks Rank #2 and a long-term earnings growth rate of 18.9%. Shares of this operator of fitness centers have increased roughly 39% year to date. The stock closed trading at $21.67 yesterday, near its 52-week high of $23.12.

Another stock that investors may look forward to is Diamond Resorts International, Inc. (DRII - Snapshot Report) with a Zacks Rank #2. Shares of this provider of hospitality and management services have advanced 17.6% so far in the year. The stock closed trading at $29.99 yesterday, near its 52-week high of $30.27.

Last but not least is La-Z-Boy Incorporated (LZB - Snapshot Report), the manufacturer, marketer, distributor and retailer of upholstery furniture products, accessories, and casegoods. It carries a Zacks Rank #2. The stock closed at $29.70 yesterday, near its 52-week high of $30.59, and has surged about 21.6% year to date.