If you’ve been keeping up with my daily videos, then you know I’ve been laser focused on the Consumer Discretionary sector for several reasons.
It’s been diverging away from tech, which isn’t common because these sectors tend to move together. And with the economy cooling off thanks to the delta variant, it makes sense that consumers are focused on needs instead of wants.
Almost every indicator points to divergence. We’re even watching the Consumer Discretionary sector trade near all-time highs, which contradicts both the overall market’s trading and fundamentals.
This tells us that the market might not be ready to break down just yet…
Which should make investors and traders who’ve been sitting on the sidelines pay attention to consumer discretionary stocks set to outperform the overall market — especially if the breakout in this sector holds over the next few trading sessions.
Remember, retail sales make up about two-thirds of the U.S. gross domestic product. So there are a lot of retail and consumer discretionary stocks we can trade.
2 Consumer Discretionary Stocks Set to Outperform the Broader Market
It shouldn’t surprise anyone that Bath & Body Works Inc. (NYSE: BBWI) is the first consumer discretionary stock set to outperform.
I mean, it’s the highest-rated consumer discretionary stock on my relative strength scan right now!
Bath & Body works is everyone’s go-to place for fresh fragrances, soaps and three-wick candles.
As you can probably imagine without me having to tell you, its one-year return is about 179%!
BBWI has had three quarters of better-than-expected earning surprises and I have a price target of about $82 per share over the next quarter.
But that’s just a little about the first consumer discretionary stock set to outperform…
Check out my short video below so we can talk more about the potential breakout headed our way, and why it could be a BIG opportunity for us over the next couple of months.
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