5 Consumer Discretionary Stocks to Buy Despite Sector's Q1 Bloodbath

Market Overview - U.S. stock markets experienced a tumultuous first quarter of 2025 due to uncertainty surrounding the Trump administration's tariffs and trade policies, elevated inflation rates, and the Fed's hawkish stance on interest rates [1] - Growth sectors such as consumer discretionary, technology, communication services, and cryptocurrencies faced significant declines, contrasting with the previous year's performance [2] Company Highlights Royal Caribbean Cruises Ltd. (RCL) - RCL is benefiting from strong cruising demand and robust booking trends, with optimism regarding private destinations as a key growth driver [7][8] - Expected revenue and earnings growth rates for the current year are 9% and 26.7%, respectively, with a recent 0.2% improvement in the Zacks Consensus Estimate for earnings [8] Ralph Lauren Corp. (RL) - RL is leveraging strong brand equity and a diversified growth strategy, with revenue growth driven by a strong direct-to-consumer channel [9][10] - Expected revenue and earnings growth rates for the current year are 3.7% and 13.5%, respectively, with a 4.9% improvement in the Zacks Consensus Estimate for earnings [11] Fox Corp. (FOXA) - FOXA is experiencing growth from rising affiliate fees and digital monetization, particularly in its news and sports segments [12][13] - Expected revenue and earnings growth rates for the current year are 13.4% and 28.3%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings [14] News Corp. (NWSA) - NWSA is benefiting from growth in Digital Real Estate Services, Book Publishing, and Dow Jones segments, with strategic acquisitions enhancing its revenue streams [15][16] - Expected revenue and earnings growth rates for the current year are -13.6% and 41.4%, respectively, with an 8.8% improvement in the Zacks Consensus Estimate for earnings [17] Sportradar Group AG (SRAD) - SRAD provides sports data services for the sports betting and media industries, offering critical software and content to various stakeholders [18][19] - Expected revenue and earnings growth rates for the current year are 16.4% and over 100%, respectively, with a 10.3% improvement in the Zacks Consensus Estimate for earnings [20]