4 Discretionary Stocks to Buy as Consumer Sentiment Rebounds

Wall Street is on a rally, with the S&P 500 and the Nasdaq hitting new all-time highs as trade worries and geopolitical tensions have eased. Also, optimism surrounding a rate cut by the Federal Reserve in the coming weeks has lifted the confidence of investors.

These positive developments over the past few weeks have seen consumer sentiment rebound for the first time in 2025.

Given the positive sentiment, consumer discretionary stocks such as Interface, Inc. TILE, Carnival Corporation & plc CCL, Grand Canyon Education, Inc. LOPE and fuboTV Inc. FUBO have a strong potential in 2025. These stocks currently have a Zacks Rank #2 (Buy) each and assure good returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Consumer Sentiment Rebounds

Consumer sentiment rose for the first time in six months, with the Michigan Consumer Sentiment Index rising 16.3% to 60.7 in June from May’s 52.2. This was also the biggest monthly increase in more than 30 years.

The jump in consumer sentiment comes on multiple positive developments. The United States is on the verge of signing a trade deal with China following weeks of negotiations. Investors are expecting announcements of more trade deals as President Donald Trump’s 90-day tariff pause is set to expire next week.

Also, geopolitical tensions in the Middle East between Iran and Israel have eased over the past week. The United States entered the conflict and targeted Iran’s nuclear facilities with airstrikes, but Iran’s response has been less intense than expected. Meanwhile, easing inflation and a weakening job market have fueled optimism that the Federal Reserve may now have justification to restart interest rate cuts.

Markets on a Rally

Easing tensions have been boosting markets. The S&P 500 extended its gains after hitting a fresh closing high on Friday. On Monday, the S&P 500 posted another record close, jumping 0.5% to close at 6,204.95 points.

The Nasdaq also hit a new all-time high, climbing 0.5% to close at 20,369.73. The S&P 500 is now up nearly 20% from its April lows and has gained 5% year to date.

The markets could get a further boost once the Federal Reserve starts its rate cuts. Market participants are expecting at least two 25 basis point rate cuts this year, with several Federal Reserve officials having hinted at the first rate cut as early as July.

4 Consumer Discretionary Stocks With Upside

Interface

Interface, Inc is the world's largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands. TILE is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment, while enhancing shareholder value.

Interface’s expected earnings growth rate for the current year is 8.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the past 60 days.

Carnival Corporation & plc

Carnival Corporation & plc operates as a cruise and vacation company. As a single economic entity, CCL forms the largest cruise operator in the world. Carnival Corporation & plc is the world’s leading leisure travel firm and carries nearly half of the global cruise guests.

Carnival Corporation’s expected earnings growth rate for the current year is 38%. The Zacks Consensus Estimate for current-year earnings improved 5.8% over the last 60 days. 

Grand Canyon Education

Grand Canyon Education, Inc. is a regionally accredited provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business, and healthcare. In addition to its online programs, LOPE offers programs at its traditional campus in Phoenix, Arizona and onsite at the facilities of employers.

Grand Canyon Education’s earnings growth rate for the current year is 8.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days.

fuboTV

fuboTV Inc. offers sports first live TV streaming platform as well as news and entertainment content. FuboTV is based in New York.

fuboTV’s expected earnings growth rate for next year is 69%. The Zacks Consensus Estimate for current-year earnings has improved 25% over the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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