5 Best Consumer Discretionary Stocks to Buy According to Hedge Funds

3. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 81

NIKE, Inc. (NYSE:NKE) is one of the best consumer discretionary stocks to buy according to hedge funds. Morgan Stanley recently made some changes to its Dividend Equity Portfolio. In the Consumer category NIKE, Inc. (NYSE:NKE) features on the portfolio as Morgan Stanley has an Overweight rating on the stock.

NIKE, Inc. (NYSE:NKE) in June posted mixed quarterly results as it missed EPS estimates for the fiscal fourth quarter. NIKE, Inc. (NYSE:NKE) however beat sales guidance. Its sales in China were also strong.

A total of 81 hedge funds out of the 943 tracked by Insider Monkey had stakes in NIKE, Inc. (NYSE:NKE) as of the end of the first quarter of 2023.

Ensemble Capital Management made the following comment about NIKE, Inc. (NYSE:NKE) in its second quarter 2023 investor letter:

“NIKE, Inc. (NYSE:NKE) (-9.7%): Nike struggled in the quarter as it continues to work off excess inventory built up during COVID and recalibrate its distribution channels between wholesale and direct-to-consumer selling models. Foot Locker, which is a major Nike retailer, fell after its second quarter earnings on news that it was aggressively marking down inventory, which investors took as a sign that Nike’s margins may suffer for the remainder of the year.”