3 Consumer Discretionary Stocks Ready for a Comeback in 2025

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S&P 500 Nouvelles

Crocs Inc,Lululemon Athletica Inc,The Consumer Discretionary Select Sector SPDR® Fu

Stocks Analysis by MarketBeat.com (Chris Markoch) covering: S&P 500, Crocs Inc, Lululemon Athletica Inc, The Consumer Discretionary Select Sector SPDR® Fund. Read MarketBeat.com (Chris Markoch)'s latest article on Investing.com

, one of the leading consumer discretionary exchange-traded funds , is up 24.7% in the last three months. That’s pushed the fund to a gain of over 31% in 2024, outpacing the

The reason for the drop in the stock price is attributed to some inventory discrepancies in the United States and a slowdown in China. Both of those are true, but even though U.S. comparable sales have fallen 2% year-over-year in the last two quarters, the company has still delivered higher YoY revenue and earnings in each of the last four quarters.

Like Lululemon, the issue weighing on the stock isn’t about declining revenue and earnings. The company continues to beat on the top and bottom lines on a YoY basis. However, at the midpoint of the company’s fourth-quarter guidance, the company will generate $12.87 in earnings per share for the full year. Combined with a forward P/E of 8.62, you get a price of around $110, which is right about where the stock is trading.

However, driven by investor optimism and market sentiment—often referred to as"animal spirits"—YETI's stock price surged beyond its fundamentals. While revenue and earnings remain up year-over-year, such rapid growth was unsustainable after the boom of 2020 and 2021.

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