Consumer discretionary stocks are making a comeback. These stocks on the TSX today made a huge fall in times of rising inflation and interest rates. However, interest rate hikes may be behind us. Inflation has fallen dramatically. Therefore, there are a few consumer discretionary stocks investors may want to consider picking up on the TSX today.
Dollarama
Sure, Dollarama (TSX: DOL) is trading near or at 52-week highs. However, this company remains a strong stock even during a lower inflation and interest rate environment. You can get the protection during market downturns. But you can also get the growth from the company’s expansion plans.
Dollarama stock has seen more and more stores open across the country. It also continues to expand in Latin America through its Dollarcity purchase. Furthermore, the company has been expanding its brand offerings, which doesn’t just bring in new customers but keeps them.
So, while shares are up 22% in the last year, I would still consider it a great buy for the future — especially as rumours abound that the company could be picking up an Australian discount retailer in the future. Keep an eye on this stock on the TSX today.
Spin Master
Another company that’s been pretty much long forgotten is Spin Master (TSX: TOY). While you might think that toys are discretionary, I assure you my five- and four-year-old would certainly disagree with you — especially when it comes to new movies such as Paw Patrol! in theatres putting major demand on these products.
The thing is, while Spin Master stock is known for its toys, it’s been expanding its online options out of the pandemic. This allows for growth no matter what happens in the market. Yet shares have dropped back and are due to rise as the market recovers. Also, during this holiday season and after a strong box office premiere of the new Paw Patrol! movie.
Shares now trade at just 15.81 times earnings, with shares now back to where they were just a year before. It trades at 1.41 times sales and 1.83 times book value. So, you can still pick up this stock while it’s valuable because it likely won’t be for long.
Sleep Country
Another company that saw growth during the pandemic, only to fall, was Sleep Country Canada Holdings (TSX: ZZZ). Everyone was focused on health, including sleep, during the pandemic. This saw a major rise in the company’s earnings during that period, especially through e-commerce.
Since then, the company has continued to make partnerships and provide new products for Canadians. Yet it’s been a road back to recovery for the stock. Shares have plunged from July highs, and it’s now looking for growth through both organic and acquisition means.
Shares now trade at just 9.45 times earnings as of writing, offering a 4.01% dividend yield as well. Yet shares are still up 8% in the last year, providing you with some growth even after the July drop. Value abounds for this stock, and with that dividend yield, it’s a great time to buy on the rebound on the TSX today.
