Published on 8 Oct 2021 on InvestorPlace via Yahoo Finance

The 7 Best Consumer Discretionary Stocks To Buy for Q4 2021

When you go shopping, there is a fine distinction between things that you need and things that are merely nice to have. The consumer discretionary sector falls in the second group — non-essential yet desirable things that people spend money on when extra cash is available. Unlike consumer staples companies, consumer discretionary stocks usually thrive during periods of economic stability but tend to tumble during rough times.

McKinsey & Company recently forecast U.S. sales of discretionary products to surge as the country continues to recover from the pandemic. The report reveals that more than 50% of consumers plan to spend extra on electronics, beauty products, and apparel. In addition, Deloitte points out that personal consumption expenditure is forecast to go up by 7.6% in 2021.

Despite significant challenges brought on by the pandemic, the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) gained 34% in the past year. Moreover, consumer discretionary stocks delivered a solid performance in recent months.