Wall Street Forecasts These 4 Consumer Goods Stocks Will Rally by

While rising inflation and the resurgence of COVID-19 cases have heightened market volatility, an improving job market and rising discretionary spending should drive the performance of many companies in the automobile and apparel industries. Indeed, Wall Street analysts expect consumer goods stocks Volkswagen (DE:) (VWAGY), Adidas (OTC:), Lands’ End (LE), and Citi Trends (CTRN) to gain more than 60% in price in the near term. So, let’s examine these names.Consumer goods companies have witnessed strong demand in the second quarter of 2021 owing to rising discretionary spending driven by stimulus checks and an improving job market. According to a McKinsey & Company report, pent-up demand and spending on discretionary drove spending to a 20% – 30% year-over-year increase in the second quarter.

While concerns over a slowdown in economic growth due to the resurgence of COVID-19 cases, and rising inflation is expected to keep the market volatile in the near term, many consumer goods stocks are well-positioned to dodge any short-term fluctuations based on their ability to capitalize on the pent-up demand for discretionary goods.

Robust digital infrastructure and impressive product launches should allow consumer goods companies Volkswagen AG (OTC:), Adidas AG (DE:) (ADDYY), Lands’ End, Inc. (LE), and Citi Trends, Inc. (CTRN) to generate rising sales in the coming months. Therefore, Wall Street analysts expect their stocks to rally by more than 60% in the coming months.

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