13 Best Consumer Discretionary Stocks To Buy Now

2. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 81 

Nike, Inc. (NYSE:NKE) ranks among the best consumer discretionary stocks to buy now. Due to persistent deterioration in brand momentum and a slower-than-anticipated recovery, Needham analysts reduced their target price for Nike, Inc. (NYSE:NKE) from $75 to $66 on June 18, though the firm retained its Buy rating on the company’s shares.

While Nike’s earnings per share were previously projected to be $1.75 and $2.42, however, Needham has now reduced the forecasts for fiscal years 2026 and 2027 to $1.52 and $2.15, respectively. According to the firm’s updated forecast, the reduced price target represents a valuation of around 30 times the anticipated EPS for fiscal year 2027.

According to Needham’s analysis, US direct-to-consumer credit card transactions are continuing to fall by double digits, and online search trends are becoming worse. Given the broader challenges, the broker believes risk-reward is skewed negatively, although Needham projects a slight upside to EPS due to Nike’s usually conservative guidance for the approaching fourth-quarter earnings. With all that said, the firm continues to endorse Elliott Hill’s strategy as the new CEO of Nike, Inc. (NYSE:NKE), despite short-term worries.

Nike, Inc. (NYSE:NKE) is the largest retailer of sportswear and footwear in the world. The company develops, manufactures, markets, and sells clothing, accessories, equipment, and footwear across the globe.