Which Consumer Discretionary Stock Will Grow The Most

Every week, we conduct a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios through stocks, options and forex trading.

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Q3 2020 hedge fund letters, conferences and more

This week, we asked over 500 Benzinga investors and traders which consumer discretionary stock they believe will grow the most by 2025.

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business manPrentice Capital was up 15.3% net last month, bringing its year-to-date gain to 49.4% net. Prentice touted its ability to preserve capital during market downturns like the first quarter of this year and the fourth quarter of 2018. Q3 2020 hedge fund letters, conferences and more Background of Prentice Capital The fund utilizes a low Read More


Which Consumer Discretionary Stock Will Have The Largest Percentage Gains?

Over the next five years, which stock will have the largest percentage gain?

  • Peloton (NASDAQ: PTON)
  • The Home Depot (NYSE: HD)
  • Starbucks (NASDAQ: SBUX)
  • Nike (NYSE: NKE)
  • Restoration Hardware (NYSE: RH)
  • Nordstrom (NYSE: JWN)

The Home Depot

27.8% of traders and investors believe The Home Depot’s price per share over the next five years will grow the most relative to its American automaker counterparts.

A respondent from our sentiment study cited the booming 2020 housing market, alongside continued home investment, will ultimately drive return on investment for Home Depot investors.

“Millenials are buying their first house, people have been stuck in their homes and either want to move or refresh their house and wear and tear on houses by being stuck in them during the pandemic” were reasons the respondent gave to back The Home Depot inside of the next 5 years.

Another confident Home Depot respondent told us: “People have been saving during the pandemic, some to buy homes, some to remodel homes. While I think home sales may falter if there is a recession, home improvements I expect will grow.”

Peloton

After The Home Depot, 23.9% of traders and investors said the exercise and media company Peloton would grow the most by 2025.

One Peloton supporter noted a permanent shift in usage from public to home gyms is possible as a consequence of the pandemic.

“The pandemic forced many fitness-minded individuals to purchase home gym equipment & many will realize working out at home is preferable for them, even after the pandemic’s direct effect on closing public gyms is over.”

Restoration Hardware And Nordstrom

Overall, only 6.7% of traders thought shares of upscale home-furnishings company Restoration Hardware would gain the most. They didn't see as much upside with Nordstrom either, the Seattle-based department store company received only 11.1% of support.

Full results:

  • Home Depot: 27.8%
  • Peloton: 23.9%
  • Starbucks: 17.2%
  • Nike: 13.3%
  • Nordstrom: 11.1%
  • Restoration Hardware: 6.7%

See also: how to buy Pfizer stock.

This survey was conducted by Benzinga in November 2020 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 400 adults.

Henry Khederian contributed to this report.