12 Best Consumer Discretionary Stocks to Buy According to Analysts

4. Sweetgreen Inc. (NYSE:SG)

Upside Potential: 60%

Number of Hedge Fund Holders: 25

Sweetgreen Inc. (NYSE:SG) is a fast-casual restaurant chain that focuses on serving healthy, made-to-order salads and bowls using fresh, locally sourced ingredients. The company emphasizes sustainability and transparency in its supply chain, appealing to health-conscious consumers. The company is well-positioned to capitalize on the growing trend of health and wellness among consumers, particularly in the fast-casual dining segment.

Citi analyst upgraded Sweetgreen Inc. (NYSE:SG) to Buy on January 10, 2025, raising the price target to $49 from $44 earlier based on optimism around the company’s Infinite Kitchen (IK) expansion and store remodels. His analysis projected store profit growth in the mid-teens by 2029 and nearly 50% upside in DCF valuations, with expectations that management’s strategic pricing initiatives could reshape market perception by 2025. However, on February 12, the analyst revised his outlook, cutting the price target to $43 while he maintained the Buy rating. The downgrade reflects concerns over weaker-than-expected same-store sales (SSS) in Q4 and early Q1 and the concerns were attributed to factors like holiday shifts, winter storms, and wildfires. Analysts cautioned that if Sweetgreen Inc. (NYSE:SG) provides conservative full-year guidance, it could lead to stock volatility, given the company’s high valuation. While long-term optimism remains, near-term headwinds have tempered some expectations.