Interest Rate Cuts: 5 Consumer Discretionary Stocks to Gain Big

Zacks09-18

The much-awaited Federal Reserve’s September policy meeting begins today, with expectations high among market participants that the central bank will finally start its rate-cut cycle. This will be the...

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This will be the...</p>\n\n<a href=\"https://finance.yahoo.com/news/interest-rate-cuts-5-consumer-180000913.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4566","symbol_name":"资本集团","start_time":0,"source_url":"https://finance.yahoo.com/news/interest-rate-cuts-5-consumer-180000913.html","article_id":"2468773396","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/r61XWjuSTq_FJKRnEYKxZQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/98772f9d9eab6e038b5ee57020bf0b1c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2468773396","pubTimestamp":1726596000,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The much-awaited Federal Reserve’s September policy meeting begins today, with expectations high among market participants that the central bank will finally start its rate-cut cycle. This will be the first time that the Fed will cut interest rates since March 2020. Investors are expecting at least a 25-basis point rate cut this month.Given this situation, investing in consumer discretionary stocks such as Crocs, Inc. CROX, Traeger, Inc. COOK, DoubleDown Interactive Co., Ltd. DDI, Royal Caribbean Cruises Ltd.RCL and Mohawk Industries, Inc. MHK would be ideal.Each of these stocks has a Zacks Rank #1  or #2 . You can seethe complete list of today’s Zacks #1 Rank stocks here.Crocs’ expected earnings growth rate for the current year is 6.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days.CROX presently has a Zacks Rank #2.Traeger’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Est","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4566":"资本集团","LU0205193047.USD":"SCHRODER ISF US SMALL & MID-CAP EQUITY \"A\" (USD)  ACC","MHK":"莫霍克工业公司","BK4146":"鞋类","BK4588":"碎股","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU1366192091.USD":"ALLIANZ US EQUITY PLUS \"AM\" (USD) INC","BK4095":"家庭装饰品","BK4517":"邮轮概念","LU0205194284.USD":"SCHRODER ISF US SMALL & MID-CAP EQUITY \"A\" (USD) INC AV","CROX":"卡骆驰","BK4085":"互动家庭娱乐","BK4142":"酒店、度假村与豪华游轮","BK4563":"昨日强势股","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","BK4539":"次新股","COOK":"Traeger Inc. (TGPX Holdings I LLC)","ATER":"Aterian Inc.","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","BK4191":"家用电器","DDI":"DoubleDown Interactive","BK4585":"ETF&股票定投概念","RCL":"皇家加勒比邮轮"},"translate_title":"降息：5只非必需消费品股票将大幅上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MHK":1,"DDI":1,"CROX":1,"RCL":1,"US2Y.BOND":0.9,"ATER":0.9,"COOK":0.9,"US10Y.BOND":0.9,"US12M.BOND":0.9,"US30Y.BOND":0.9,"US3Y.BOND":0.9,"US5Y.BOND":0.9,"US6M.BOND":0.9,"US7Y.BOND":0.9,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"The much-awaited Federal Reserve’s September policy meeting begins today, with expectations high among market participants that the central bank will finally start its rate-cut cycle. This will be the first time that the Fed will cut interest rates since March 2020. Investors are expecting at least a 25-basis point rate cut this month.\nGiven this situation, investing in consumer discretionary stocks such as Crocs, Inc. CROX, Traeger, Inc. COOK, DoubleDown Interactive Co., Ltd. DDI, Royal Caribbean Cruises Ltd. RCL and Mohawk Industries, Inc. MHK would be ideal.\nEach of these stocks has a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.\nRate Cut Almost Assured\nA softer-than-expected jobs data and a marginal rise in monthly inflation in August crashed hopes of a 50-basis point rate cut by the Federal Reserve in its Sept. 17-18 policy meeting. However, even a small rate cut will be cheered by investors.\nThe Federal Reserve raised interest rates by 525 basis points since March 2022 in its fight to bring down 40-year-high inflation. Hopes of a rate cut earlier this year were dampened after inflation unexpectedly rose in the first quarter.\nThe Fed is finally convinced that inflation has started cooling and is on track to reach its 2% target. This has raised hopes of the first rate cut in more than four years. The CME FedWatch tool shows a 100% probability of a 25-basis point cut this week, while a 50% chance of a 50-basis point cut.\nConsumer Discretionary Stocks to Get a Boost\nConsumer discretionary stocks are considered growth stocks, inversely related to the market interest rate. Lower interest rates tend to boost such stocks by reducing the opportunity cost of holding non-yielding assets like consumer discretionary stocks.\nAlso, the U.S. economy continues to remain on solid ground. The U.S. economy rebounded in the second quarter, with the GDP growing at an annualized rate of 3% after increasing just 1.4% in the first quarter.\nAlso, consumer sentiment is high. The Michigan Consumer Sentiment Index’s preliminary reading for September rose to 69 from 67.9 in August, its highest level since May 2024.\n4 Consumer Discretionary Stocks to Gain\nCrocs, Inc.\nCrocs, Inc. is one of the leading footwear brands with a focus on comfort and style. CROX offers a wide variety of footwear products, including sandals, wedges, flips and slides, that cater to people of all ages.\nCrocs’ expected earnings growth rate for the current year is 6.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. CROX presently has a Zacks Rank #2.\nImage Source: Zacks Investment Research\nTraeger, Inc.\nTraeger, Inc. provides wood pellet grills. COOK’s pellet grills utilize wood-fired convection power, owners can grill, smoke, bake, roast, braise and barbecue meals on one cooking system.\nTraeger’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 100% over the past 60 days. COOK currently carries a Zacks Rank #2.\nImage Source: Zacks Investment Research\nDoubleDown Interactive Co., Ltd.\nDoubleDown Interactive Co., Ltd. is a developer and publisher of digital social casino games. DDI is based in Seattle.\nDoubleDown Interactive’s expected earnings growth rate for the current year is 15.8%. The Zacks Consensus Estimate for current-year earnings has improved 13.5% over the past 60 days. DDI currently sports a Zacks Rank #1.\nImage Source: Zacks Investment Research\nRoyal Caribbean Cruises Ltd.\nRoyal Caribbean Cruises Ltd. owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, RCL has a 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. Royal Caribbean Cruises’ cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.\nRoyal Caribbean Cruises’ expected earnings growth rate for the current year is 71.1%. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. RCL currently has a Zacks Rank #2.\nImage Source: Zacks Investment Research\nMohawk Industries, Inc.\nMohawk Industries, Inc. is a leading global manufacturer of flooring products that enhance residential and commercial space. MHK manufactures carpets, rugs, ceramic tile, laminate, wood, stone and vinyl flooring.\nMohawk Industries’ expected earnings growth rate for the current year is 8.8%. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the past 60 days. MHK currently has a Zacks Rank #2.\nImage Source: Zacks Investment Research\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report\nCrocs, Inc. (CROX) : Free Stock Analysis Report\nMohawk Industries, Inc. (MHK) : Free Stock Analysis Report\nTraeger, Inc. (COOK) : Free Stock Analysis Report\nDoubleDown Interactive Co., Ltd. Sponsored ADR (DDI) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2468773396"}