Consumer Discretionary Industry Research & Analysis

Consumer Discretionary Industry Research & Analysis


Value Indicators

Strengths + Opportunities = 269

Threats + Weaknesses = 203

When strengths & opportunities substantially exceed threats & weaknesses, an investment in the discretionary industry has great long term potential.

Discretionary Industry Research Report

Discretionary Industry Profile _ (edit/improve) The consumer discretionary industry includes companies that respond to discretionary higher spending. Discretionary income (also called disposable income or play money) is gross income - taxes - necessities. Higher discretionary income leads to greater purchases of items that are outside the scope of necessities. These items may include new cars, a second home, restaurant meals, jewelry, games, vacations, and the likes. This type of spending is the first to drop when consumers have to save money. Companies that rely on discretionary spending often have very volatile stock prices and revenue changes.

Discretionary Industry Analysis: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Discretionary Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.