The economy is set for a rebound in 2024, making it an optimal time to consider the best consumer discretionary stocks to buy. As we set our sights on the year 2030, the end of the decade could spell massive returns.
The consumer discretionary sector can often be filled with hidden gems with tremendous growth potential. This will be driven by increased consumer spending and more favorable economic conditions. By investing in these forward-thinking companies, investors can achieve the financial abundance that they desire.
Let’s discover the three best consumer discretionary stocks to double your money by 2030!
Consumer Discretionary Stocks: TJX Companies (TJX)
TJX Companies (NYSE:TJX) is an American multinational department store headquartered in Framingham, Massachusetts. They own a number of iconic brands and have been one of the safest retail stocks to own over the last decade. Moreover, TJX is about to close off a strong 2024 fiscal year, and the future looks extremely bright.
TJX is one of the top-performing retailers that investors should keep on their radar in 2024. They own a number of iconic brands, including Tj-Maxx, Marshalls, HomeGoods, and Winners. Now is a great time to look closer as cost-structure optimization and higher food traffic continue to drive comparable sales growth. Lower interest rates and higher consumer spending could continue to drive growth in the 2025 fiscal year.
In Q3 2023, TJX’s revenue increased 9% YOY to $13.27 billion. Most of the company’s growth can be attributed to higher foot traffic at their Marmax and HomeGoods locations. In fact, things are going so well that CEO Ernie Herrman raised full-year guidance for the 2024 fiscal year. Growth is set to continue through FY25, and investors should not leave this transformative company behind.
Marriott International (MAR)
Marriott International (NASDAQ:MAR) is an American hospitality and hotel chain that is set to benefit from positive travel trends in 2024. The UN World Tourism Organization expects international tourism to return to pre-pandemic levels in 2024. This is great news for the hotel sector, which performed particularly well in 2023 despite ongoing macroeconomic headwinds.
Despite record-high consumer debt levels, consumers continue spending more than they should. The prospect of lower interest rates in the back half of 2024 could also significantly boost consumer confidence. Business travel is also expected to take off, which has been a huge focus for credit card processors like Visa and Mastercard.
In their latest quarterly results, Marriott continued to deliver impressive growth. System-wide revenue per room increased 8.8% YOY, driven by growth in international markets. International tourism hit an astonishing $1.4 trillion in 2023, and Marriott’s robust development pipeline suggests growth will continue. While macroeconomic headwinds still exist, Marriott’s resilience and pipeline opportunities position them for long-term growth.
Lowe’s Companies (LOW)
Lowe’s Companies (NYSE:LOW) is slowly returning to the limelight as a new macroeconomic landscape supports growth opportunities. Their underlying business is highly cyclical, and higher interest rates and inflation have been a drag on the company’s top and bottom line. However, investors should watch for a slow and steady turnaround in 2024.
Lowe’s stock has far outpaced the S&P 500 over the last five years, rising 128% compared to 84%. The company saw robust revenue, EPS, and dividend growth during that same time frame. However, things would take a turn for the worse in 2022 when inflation and higher interest rates crushed the economy. Discretionary spending fell off a cliff, contributing to YOY comparable sales declines.
This would eventually carry over into the 2023 fiscal year, with management forecasting a decline in both revenue and operating income. While this is obviously not bullish news, Lowe’s still saw impressive bottom-line growth in Q3 2023. EPS rose 1,124% YOY to $3.06 per share, signaling that a turnaround is underway. Lowe’s also continues to grow its dividend, making it one of the best consumer discretionary stocks to hold for the long term.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.