13 Best Consumer Discretionary Stocks for the Rest of 2021

Consumer discretionary stocks have plenty of catalysts to drive them higher into year's end. Here are 13 picks to watch.

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Consumer discretionary stocks put in a solid performance through the first six months of 2021. But what's in store for the second half?

While rising concerns over the delta variant of COVID-19 could stall the sector's upside in the short term, the latter half of the year could be even more rewarding than the first.

In its 2021 Midyear Equity Sector Outlook, Wells Fargo suggests that the sub-sectors that were strongest prior to the pandemic will most likely show leadership after a full reopening.

"We continue to favor internet & direct marketing retail, which was a strong sub-industry going into the pandemic, grew in importance throughout the pandemic, and we expect to exit the pandemic a healthier/stronger industry than most, if not all, consumer sub-industries," Wells Fargo's strategists say. "We also favor discounters, mass-merchants and off-price retailers as we believe they will likely benefit disproportionately from the multiple government stimulus programs."

With this in mind, we have compiled a list of the 13 best consumer discretionary stocks for the second half of 2021. If you're looking for consumer-facing plays to position for more upside through year's end – a time frame that encompasses both the back-to-school and holiday shopping seasons – this list of companies might have something for you.

Data is as of July 27. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analysts' opinions courtesy of S&P Global Market Intelligence. Stocks are listed in alphabetical order.

Will Ashworth
Contributing Writer, Kiplinger.com

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.