7 Consumer Discretionary Stocks with High Projected Growth

Joel Anderson |

David Einhorn, coffee, short, accounting, earnings, quarterly, report, hedge fund, K-cup, Keurig, Green Mountain Coffee Roasters, Greenlight CapitalSettling on the right trend in consumer goods can mean big things for any company. Apple (AAPL) may be a tech company, but they're still a prime example of this trend. It's easy to forget that a mere five years ago no one had ever heard of a smart phone or a tablet (aside from Moses) and that Apple's shares were trading for just over $85 a pop. However, Apple managed to tap into a demand that catapulted its profits and its stock into the stratosphere.

Being able to anticipate demand and create products that, while not a necessity, are still a must-have for most American consumers can mean big things for a business. As many consumer goods companies come and go, the ones that stick around over time are those that can find a strong market and plant their flag there firmly.

So, here are seven consumer discretionary stocks that are anticipating solid earnings in the near future and over the next five years. Each has projected annual EPS growth of 25 percent a year for the next five years while also expecting profits to spike in this year and the next. Finally, each is attractively priced based on projected growth with PEG values under 1.

Green Mountain Coffee Roasters (GMCR)

Market Cap: $6.83 billion   Expected EPS Growth Next Five Years: 32.88 percent   PEG: 0.69

Not a lot to be said about Green Mountain Coffee Roasters that wasn't already said during their flap with Greenlight Capital's (GLRE) David Einhorn last year, but they're projecting solid growth over the next few years.

Goodyear Tire & Rubber Company (GT)

Market Cap: $2.70 billion   Expected EPS Growth Next Five Years: 26.45 percent   PEG: 0.34

Goodyear is anticipating putting tires to pavement in terms of earnings over the next five years, and the stock still appears to be priced well based on those projections.

Harman International Industries (HAR)

Market Cap: $3.31 billion   Expected EPS Growth Next Five Years: 31.00 percent   PEG: 0.67

Harman develops and manufactures electronics and audio products.

Modine Manufacturing (MOD)

Market Cap: $399.07 million   Expected EPS Growth Next Five Years: 34.05 percent   PEG: 0.38

Meritor (MTOR)

Market Cap: $721.01 million   Expected EPS Growth Next Five Years: 51.00 percent   PEG: 0.25

Stoneridge (SRI)

Market Cap: $253.03 million   Expected EPS Growth Next Five Years: 35.20 percent   PEG: 0.14

Tenneco (TEN)

Market Cap: $2.26 billion   Expected EPS Growth Next Five Years: 33.08 percent   PEG: 0.44

Interestingly enough, all four of the last four companies on this list are in the same industry: auto parts. While operating in different segments within that industry, it is intriguing to note that more than half of the companies that fit our screen all operate in the same area.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
AAPL Apple Inc. 116.60 -0.46 -0.39 23,192,665
GLRE Greenlight Reinsurance Ltd. 20.35 -0.19 -0.93 41,550
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
GT The Goodyear Tire & Rubber Company 31.60 -0.14 -0.44 1,964,471
HAR Harman International Industries Incorporated 80.01 -0.07 -0.09 566,188
MOD Modine Manufacturing Company 11.25 -0.15 -1.32 64,822
MTOR Meritor Inc. 10.55 -0.24 -2.22 539,742
SRI Stoneridge Inc. 18.01 -0.16 -0.88 80,726
TEN Tenneco Inc. 54.38 -0.24 -0.44 403,258


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