- The U.S. consumer continues to play a significant role in maintaining the growth of the U.S. economy, while the strength of the global consumer, including the now-traveling Mainland Chinese population, remains an underrated force for global growth.
- Zacks recently reviewed the top Consumer Discretionary stocks, including major global consumer companies like Louis Vuitton Moet Hennessey, Sony, Nintendo, and Lululemon.
- The IMF has upgraded the world’s 2024 global real GDP growth rate by +0.1% in April 2024, indicating a strong global consumer narrative.
This article provides an in-depth analysis of the current state of the Consumer Discretionary sector, highlighting key stocks and the role of the global consumer in driving economic growth.
Consumer Discretionary Stocks: A Review
On April 22nd, 2024, Zacks reviewed the top Consumer Discretionary stocks. Major global consumer companies that made the cut include French Luxury good maker Louis Vuitton Moet Hennessey, Japan’s Sony and Nintendo, and Canada’s Lululemon. These companies represent significant large-cap stock picking ideas in this high beta stock sector.
The Role of the Global Consumer
The strength of the global consumer, including the now-traveling Mainland Chinese population, remains an underrated force for global growth. The U.S. consumer continues to play a significant role in maintaining the growth of the U.S. economy. This is further supported by the IMF’s recent upgrade of the world’s 2024 global real GDP growth rate by +0.1% in April 2024.
Zacks May Sector/Industry/Company Telescope
The April 30th, 2024 Zacks Industry Ranks showed a very cyclical set-up. There were three Very Attractive sectors: Info Tech, Industrials and Materials. Zacks Industry Ranks showed five Attractive sectors too: Health Care, Financials, Utilities, Energy and Communication Services. The two Consumer groups: Discretionary and Staples were at Market Weight.
Conclusion
In conclusion, the strong global consumer narrative does have quantitative support. The IMF’s upgrade of the world’s 2024 global real GDP growth rate by +0.1% in April 2024 is a testament to this. The unexpected economic resilience, despite significant central bank interest rate hikes aimed at restoring price stability, also reflects the ability of households in major advanced economies to draw on substantial savings accumulated during the pandemic.
