5 Best Consumer Discretionary Stocks to Buy

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 252

In addition to being a tech giant, Amazon.com, Inc. (NASDAQ:AMZN) is considered a consumer discretionary stock given the company often sells more premium priced products on its online platform that consumers don’t necessarily need. Given the inflation, Amazon.com, Inc. (NASDAQ:AMZN)’s growth has slowed as a result and with the 47% year to date decline in the stock, Amazon.com, Inc. (NASDAQ:AMZN) could be attractive long term given its earnings growth potential.

Diamond Hill Capital Management commented on Amazon.com, Inc. (NASDAQ:AMZN) in a Q2 2022 investor letter,

“Amazon.com, Inc. (NASDAQ:AMZN)’s shares underperformed as valuations of fast-growing companies continued to compress in Q2. Amazon’s growth investments over the past two years have pressured earnings as consumer demand has been weaker than anticipated. However, we believe the company will be able to grow into its infrastructure investments over time. These investments have obscured the magnitude of sustainable free cash flow as well as the attractive valuation of the business relative to peers.”

With 252 hedge funds in our database long Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q2, the company ranks #1 on our list of 12 Best Consumer Discretionary Stocks to Buy.

You can also take a look at 20 Most Admired Companies in the World in 2022 and 15 Biggest Dow Companies By Market Cap.

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