雅虎香港財經 Hopes of Rate Cuts Soar on Cooling Inflation: 5 Top Gainers
Inflation, which resumed its climb in the first quarter of 2024, is finally showing signs of cooling. The Commerce Department said that personal consumption expenditure (PCE), the Federal Reserve’s favorite inflation gauge, increased just 0.3% month over month in April, unchanged from March’s rise and in line with the consensus estimate.
Core PCE, which excludes the volatile food and energy prices, rose 0.2% month over month, lower than March’s rise of 0.3% and the consensus estimate of a repeat of 0.3%.
Year over year, PCE increased 2.7%, which was in line with forecasts and the same as March’s increase. Year over year, Core PCE increased 2.8% in April, also in line with the forecast and unchanged March.
The fresh inflation data comes as personal income and spending slowed in April. Personal income rose 0.3% month over month in April, while consumer spending increased just 0.2%.
Also, the manufacturing sector slowed further in May. The ISM Manufacturing PMI fell to 48.7% in May from 49.2% in April, indicating that the economy is slowing.
Rising inflation in the first quarter faded hopes of a rate cut any time soon as fears of recession grew. However, the signs of a slowing economy and easing inflation have raised hopes once again that the Federal Reserve could soon start rate cuts.
Market participants are pricing in at least two rate cuts of 25 basis points by the end of this year. Lower borrowing costs bode well for growth stocks like technology and consumer discretionary as well as the broader economy.
Our Choices
We have narrowed our search to five consumer discretionary stocks such as Crocs, Inc. CROX, Royal Caribbean Cruises Ltd. RCL, Wolverine World Wide, Inc. WWW, Skechers U.S.A., Inc. SKX and Netflix, Inc. NFLX that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs, 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.
Crocs’ expected earnings growth rate for the current year is 5.2%. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the past 60 days. CROX presently has a Zacks Rank #2.
Royal 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' brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
Royal Caribbean Cruises' expected earnings growth rate for the current year is 63.7%. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the past 60 days. RCL currently sports a Zacks Rank #1.
Wolverine World Wide, Inc. is engaged in the designing, manufacturing and distribution of a wide variety of casual as well as active apparel and footwear. WWW also manufactures children’s footwear and specially designed boots and accessories for industrial purposes.
Wolverine World Wide’sexpected earnings growth rate for the current year is 1,500%. The Zacks Consensus Estimate for current-year earnings has improved 3.9% over the past 60 days. WWW presently carries a Zacks Rank #1.
Skechers U.S.A., Inc. designs, develops, markets and distributes footwear for men, women and children in the United States and overseas under the SKECHERS name, as well as under several uniquely branded names. SKX has distribution networks and joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America.
Skechers U.S.A.’s expected earnings growth rate for the current year is 16.3%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. SKX presently carries a Zacks Rank #1.
Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.
Netflix’s expected earnings growth rate for the current year is 52.2%. The Zacks Consensus Estimate for the current-year earnings has improved 7.5% over the past 60 days. Netflix currently sports a Zacks Rank #1.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
