Let’s unpack what the ‘best consumer discretionary stocks’ should mean to you. I definitely don’t mean that they’re the best stocks to invest in.
I don’t think that any stocks are ‘safe.’ What I look for is volatility, and the best consumer discretionary stocks have plenty of it!
When you’re learning about a sector, pay attention to the sector leaders. Their charts can tell you a lot about the health of the sector.
When they’re running, their momentum can affect their entire sector and create the sympathy plays I like to trade!
While we’re focusing on consumer discretionary stocks here, it’s important to remember that the stock market is a vast and diverse place. There are many different types of stocks, each with their own unique characteristics and potential for profit. To truly excel as a trader, you need to understand the full breadth of opportunities available to you. So, why not take a moment to explore the different types of stocks and expand your trading horizons?
Tesla Inc. [NASDAQ: TSLA]
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles.
Nike Inc. [NYSE: NKE]
Nike is the largest athletic footwear and apparel brand in the world. It designs, develops, and markets athletic apparel, footwear, equipment, and accessories in six major categories: running, basketball, football (soccer), training, sportswear, and Jordan. Footwear generates about two thirds of its sales. Nike’s brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide and outsources its production to more than 300 factories in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Netflix Inc. [NASDAQ: NFLX]
Netflix’s primary business is a streaming video on demand service now available in almost every country worldwide except China. The firm primarily generates revenue from subscriptions to its eponymous service. Netflix delivers original and third-party digital video content to PCs, internet- connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. Netflix is the largest SVOD platform in the world with over 220 million subscribers globally.
The Best Consumer Discretionary Penny Stocks in February 2024
The best consumer discretionary penny stocks are constantly changing. Most of these companies won’t become the next Apple. I’m keeping them on watch to see if they match my preferred setups.
Penny stocks can be a great way to potentially make substantial profits, especially when you’re dealing with consumer discretionary stocks. However, it’s also important to diversify your portfolio and consider other types of stocks as well. If you’re looking for some inspiration, check out my guide on how to invest in 10 top stocks. It’s a great resource for any trader looking to broaden their investment strategy.
NOTE: I have NO intention of trading these stocks unless they suit my favorite setups. This is only a watchlist.
To find the best consumer discretionary penny stocks requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
These are the penny stocks I’m watching in February 2024:
Tupperware Brands Corporation [NYSE: TUP]
Tupperware Brands Corp is a consumer products company that designs innovative, functional, and environmentally responsible products. The company distributes its products into nearly 70 countries. The company engages in the marketing, manufacture, and sale of design-centric preparation, storage, and serving solutions for the kitchen and home through the Tupperware brand name. The company primarily uses a direct selling business model to distribute and market products, while continuing to expand digital platforms and business-to-business distribution channels. The company operates its business under four reportable segments in four broad geographic regions namely the Asia Pacific, Europe (Europe, Africa and the Middle East), North America, and South America.
EBET INC. [NASDAQ: EBET]
EBET Inc is a technology company developing and operating platforms focused on esports and competitive gaming. It operates a licensed online gambling platform, which is an esports/sportsbook focused on bettors located in Asia and Latin America. It offers real money betting on esports events from around the world in a secure environment. It accepts wagers on esports titles including Counter-Strike: GO, League of Legends, Dota 2, StarCraft 2, Rocket League, Rainbow Six, Warcraft 3, King of Glory, and FIFA, as well as professional sports including the NFL, NBA, MLB, soccer and more.
Hanesbrands Inc. [NYSE: HBI]
Hanesbrands manufactures basic and athletic apparel under brands including Hanes, Champion, Playtex, Maidenform, Bali, and Bonds. The company sells wholesale to discount, midmarket, and department store retailers as well as direct to consumers. Hanesbrands is vertically integrated as it produces more than 70% of its products in company-controlled factories in more than three dozen nations. Hanesbrands distributes products in the Americas, Europe, and Asia-Pacific. The company was founded in 1901 and is based in Winston-Salem, North Carolina.
How To Trade Consumer Discretionary Stocks
Learning how to trade consumer discretionary stocks starts with your education. You need to learn what penny stocks are, how they work, and how to identify their patterns.
My FREE penny stock trading guide is a good start.
From there, if you want to take it to the next level, consider joining my Trading Challenge.
Once you’re ready to start trading, you need a few key things…
Choose the Right Broker
To trade stocks, you need a brokerage account. Your broker is the gateway between you and trades. Choose a good one … Do your research and check out this guide for more tips.
Check out this quick startup guide to choosing a broker:
Get a Powerful Stock Platform
A stock screener can help you narrow down the many stocks available to trade. I use StocksToTrade, which can also help with the next item…
Build Your Watchlist
Before every trade, you need to perform a detailed stock analysis.
There are two key types of stock analysis: fundamental analysis and technical analysis.
See how I build my watchlists every Sunday by signing up to my NO-COST weekly watchlist!
StocksToTrade can help you do both: it has awesome charting software and links to stock news, SEC filings, and even social media mentions.
With day trading penny stocks, technical analysis — reading the charts — matters more. Chart patterns show me how a stock’s performed over weeks, months, or even years. That helps me on the next step…
Follow Your Trading Plan
A trading plan is where you plot out entry and exit points, risk, and profit goals. Ideally, you base the plan on careful research and stick to it.
Trading consumer discretionary stocks, like any other type of stock, requires a solid strategy. It’s not enough to simply identify potential opportunities; you also need to know when to enter and exit trades, how to manage your risk, and how to stay disciplined when the market is volatile. If you’re new to trading or just looking to refine your approach, I highly recommend checking out my guide on day trading strategy. It’s packed with valuable insights that can help you trade more effectively.
Track Every Trade
You need to keep a METICULOUS trading journal. This is where the science of trading comes in.
How do you know what strategies work for you, and which don’t? You look at your trading journal.
How do you know when you’ve been overtrading and need a timeout? You look at your trading journal.
If you’re not careful, your emotions can determine your trading approach. Before long, you’ll be wearing the same socks that you were wearing on your “big day.” That isn’t trading anymore — that’s gambling.
Rinse and Repeat
Real trading is a job. It isn’t a boring, 9-5 job, but it’s still something that rewards consistency and discipline.
Follow these rules throughout your trading career. That will separate you from the constant flow of newbies trying to get rich quick, and protect you from the scammers trying to sell trading shortcuts.