Best Consumer Discretionary Stocks to Buy Now

Consumer discretionary stocks have been challenging places to invest in, but these picks could overcome several sector headwinds.

tiny red shopping cart with green, pink and purple bags flying out of it next to smartphone and credit card
(Image credit: Getty Images)

Investors seeking out the best consumer discretionary stocks have had a tough time in recent years – and this challenging environment could continue in the near term. 

Creating uncertainty across the sector is stubbornly high inflation, a rising interest rate environment and anxiety over a potentially larger slowdown or recession in the U.S. economy. 

Still, there are reasons to be optimistic toward the best stocks to buy from the consumer discretionary sector. For one, "discretionary spending could remain strong among higher-income consumers who feel less squeezed by rising costs," says Jordan Michaels, sector portfolio manager at Fidelity

Additionally, the sector's poor performance in 2022 has made valuations much more attractive in 2023. "While the short-term picture may look murky, there appear to be many instances where stock valuations have overcompensated for macroeconomic concerns," Michaels says. "In the home-improvement retail industry and others, I have seen strong fundamentals and low valuations – a combination that could be attractive for long-term investors." 

Roughly three months into 2023, it appears others agree. Through March 15, the Consumer Discretionary Select Sector SPDR Fund (XLY) is up 8.9%, behind only technology and communication services as the top-performing sector year-to-date.

With that in mind, here are the nine best consumer discretionary stocks to buy now. This list includes equities highly beloved by Wall Street analysts, showing solid fundamentals and boasting attractive valuations.

Data is as of March 15. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analyst ratings courtesy of S&P Global Market Intelligence, unless otherwise noted. Stocks are listed by analysts' consensus recommendation, from lowest to highest.

Will Ashworth
Contributing Writer,

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.