Although the industry continues to attract significant investor attention, despite the fact that there are a few concerns about the supply chain and the resurgence in COVID-19 cases, the sector still enjoys substantial investor interest due to increased consumer spending and pent up demand. It might be a good idea to now buy the shares of high-quality consumer discretionary stocks such as Starbucks (SBUX), Tapestry, and TJX Companies (NYSE. Continue reading to find out more. Despite ongoing supply chain disruptions and the COVID-19 case resurgence, investors continue to pay attention to the consumer discretionary sector due to rising consumer spending and pent up consumer demand. Investors’ interest in the consumer discretionary industry is evident in the Consumer Discretionary Select Sector SPDR ETF’s (XLY) approximate 5% gains over the past six months.
Commerce Department reports that U.S. consumer spending rose 0.8% in August. Retail sales also increased 0.7% in August, contrary to expectations for a decrease of 0.8%. The holiday season will see consumer discretionary goods spending increase further.
It could make sense to invest in fundamentally sound consumer discretionary stocks like Starbucks Corporation (NASDAQ:), Tapestry, Inc., Inc., and The TJX Companies, Inc. TJX. The stock prices of all three companies have risen over recent months. They are predicted to deliver significant returns during the fourth quarter.
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