While the resurgence of COVID-19 cases and supply chain issues are concerns for the consumer discretionary industry, it continues to enjoy substantial investor attention due to increasing consumer spending and pent-up demand. So, we think it could be wise now to scoop up the shares of quality consumer discretionary stocks Starbucks (SBUX), The TJX Companies (NYSE:TJX), and Tapestry (NYSE:TPR). Read on to learn more.Despite the resurgence of the COVID-19 cases and ongoing supply chain disruptions, the consumer discretionary industry has been enjoying continued investor attention thanks to pent-up consumer demand and rising consumer spending. Investors’ interest in the consumer discretionary industry is evident in the Consumer Discretionary Select Sector SPDR ETF’s (XLY) approximate 5% gains over the past six months.
According to the Commerce Department, U.S. consumer spending increased 0.8% in August. In addition, retail sales rose 0.7% in August despite expectations of a 0.8% decline. Spending on consumer discretionary products is expected to grow further in the coming months because of the holiday season.
So, we think it could be wise to bet on fundamentally strong consumer discretionary stocks Starbucks Corporation (NASDAQ:SBUX), The TJX Companies, Inc. (TJX), and Tapestry, Inc. (TPR). All three names have rallied in price over the past few months and are expected to generate significant returns in the fourth quarter.