There’s been plenty of chatter about the K-shaped economy, where wealthy households thrive while lower-income consumers fall further behind.
One place the divide is showing up is consumer discretionary stocks.
Consumer discretionary is a sector of the stock market that covers goods and services people buy after paying for essentials like housing, food and utilities.
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Its broad reach includes segments spanning automobiles, retailers, hotels, restaurants, leisure products and more. When demand is high and consumers are spending, companies in this sector tend to shine.
And despite uneasy economic headlines, Americans’ buying power remains strong. Bank of America reported card spending rose 5.1% year over year in May, its strongest growth in nearly four years.
But gains aren’t evenly distributed. New York Federal Reserve researchers found real retail spending from 2023 through March 2026 rose 7.6% among high-income households, compared with 3% for middle-income households and just 1% for lower-income households.
So far in 2026, many standout consumer discretionary stocks have clustered at opposite ends of the market. Shares of premium brands serving affluent customers have flourished, while discount retailers are winning over shoppers focused on stretching every dollar.
Middle-market companies tell a more complicated story. They can get squeezed between wealthy consumers trading up and budget-conscious households trading down. Still, Target Corp. (ticker: TGT), Starbucks Corp. (SBUX), Cracker Barrel Old Country Store Inc. (CBRL) and other familiar brands show how a strong turnaround story can overcome a choppy consumer backdrop.
Here are some of the best consumer discretionary stocks in 2026, along with a low-cost diversified ETF that can give you broad exposure to the entire sector:
| Stock/ETF | Market capitalization | Year-to-date return as of July 23 |
| Viking Holdings Ltd. (VIK) | $45.3 billion | 40% |
| Ross Stores Inc. (ROST) | $74.6 billion | 30% |
| Cracker Barrel Old Country Store Inc. (CBRL) | $1.2 billion | 108% |
| Marriott Vacations Worldwide Corp. (VAC) | $3.2 billion | 66% |
| Hilton Worldwide Holdings Inc. (HLT) | $74.6 billion | 12% |
| SharkNinja Inc. (SN) | $21.1 billion | 30% |
| Starbucks Corp. (SBUX) | $119.3 billion | 24% |
| Ford Motor Co. (F) | $57.8 billion | 10% |
| Vanguard Consumer Discretionary ETF (VCR) | $6.8 billion* | -5.7% |
*Denotes assets under management.
Viking Holdings Ltd. (VIK)
Viking Holdings — best known for Viking River Cruises — has quietly become a rock star in the cruise industry since going public in May 2024. Shares have more than quadrupled since then, leaving better-known rivals Carnival Corp. Ltd. (CCL), Royal Caribbean Cruises Ltd. (RCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) in the dust.
The Bermuda-incorporated company specializes in river, ocean and expedition cruises. Viking ended 2025 with 103 ships and entered 2026 with 86% of its available capacity already sold. Its market cap is roughly $45 billion.
The company’s balance sheet is also stronger than many rivals, with net debt equal to roughly one year of earnings, compared to over five years for Norwegian Cruise Line.
Viking’s revenue jumped nearly 22% in 2025, and company shares were up about 40% year to date through mid-July.
Ross Stores Inc. (ROST)
Economic skittishness can be a boon for discount retailers like Ross Stores, which operates more than 2,200 Ross Dress for Less and dd’s Discounts locations nationwide.
In its latest quarter, comparable-store sales jumped 17%, almost triple the 6% growth reported by competitor TJX Cos. Inc. (TJX), the parent company of T.J. Maxx and Marshalls.
Based in Dublin, California, Ross sells discounted apparel, footwear and home goods, with a market cap of $74.6 billion. The stock is up about 30% year to date as of July 23.
Cracker Barrel Old Country Store Inc. (CBRL)
The Lebanon, Tennessee-based company operates nearly 660 roadside restaurants, generating a lion’s share of its revenue from food and beverage sales and the rest from retail merchandise. Its market cap is roughly $1.2 billion, making it much smaller than restaurant peers Texas Roadhouse Inc. (TXRH) and Darden Restaurants Inc. (DRI).
However, Cracker Barrel’s stock is a turnaround story, and Wall Street is eating it up.
After a botched rebranding effort in 2025, the stock fell over 28% from Aug. 18 through Sept. 19 in response to customer backlash.
Cracker Barrel quickly scrapped the plan, reverting to its original logo and halting planned restaurant remodels. Shares have since rebounded.
Wells Fargo analyst Anthony Trainor upgraded Cracker Barrel on June 10 and raised his price target to $50 from $35.
In July, Cracker Barrel said it expected to meet or exceed its full-year revenue guidance. The company also divested Maple Street Biscuit Co., and a sale-leaseback of 26 properties generated about $77 million, which Cracker Barrel said it plans to use to pay off debt and improve profitability.
Shares jumped 9% in after-hours trading following the July 20 announcement. The stock has returned a staggering 108% year to date through July 23.
Marriott Vacations Worldwide Corp. (VAC)
Marriott Vacations Worldwide gives investors exposure to travel spending without owning traditional hotels.
Headquartered in Orlando, Florida, the company develops and manages vacation-ownership resorts under brands such as Marriott Vacation Club, Westin, Sheraton and Hyatt.
It produces revenue through timeshare sales, management fees, consumer financing and rental activity. The company’s market cap was about $3.2 billion as of July 23.
Goldman Sachs analyst Lizzie Dove double-upgraded the stock from “sell” to “buy” on June 1, citing stronger company-specific improvement opportunities and resilient leisure demand. The company pays an annual dividend with a yield of about 3.4%.
Hilton Worldwide Holdings Inc. (HLT)
Hilton Worldwide is benefiting from consumers’ continued willingness to spend on travel, especially at the upper end of the market.
Based in McLean, Virginia, the company franchises and manages more than 9,000 properties in 143 countries under brands like Hampton, DoubleTree and Waldorf Astoria.
Hilton also opened 131 hotels during the first quarter of 2026. About 527,000 rooms were under development as of March 31, up 5% from a year earlier.
The company reported a 28% increase in first-quarter net income and raised parts of its 2026 outlook.
[Read: Best Travel Stocks and ETFs to Buy in Tariff Turbulence]
SharkNinja Inc. (SN)
SharkNinja has turned into an unusually strong growth story. Headquartered in Needham, Massachusetts, the company sells household appliances, including vacuums, blenders, coffee makers, hair tools and other products under the Shark and Ninja brands.
Analysts say SharkNinja’s rapid product development, growing advertising presence and international expansion could be bullish for the company’s earnings and sales growth.
First-quarter sales rose 15.6% to $1.4 billion, while adjusted net income jumped 25.1%, helping propel the shares roughly 30% higher year to date by mid-July. SharkNinja’s market cap is roughly $21 billion.
Starbucks Corp. (SBUX)
Starbucks operates and licenses more than 40,000 coffee shops worldwide from its Seattle headquarters.
Company-operated stores generate about 83% of revenue, licensed locations contribute roughly 12%, and packaged products and other sources supply the rest.
After declining traffic and long wait lines pressured the business in 2024, former Chipotle Mexican Grill Inc. (CMG) CEO Brian Niccol took the reins in September of that year. His “Back to Starbucks” plan focuses on faster service, more staffing and a better in-store experience.
Early results are encouraging: Fiscal second-quarter revenue rose 9% to $9.5 billion, and global comparable-store sales increased 6.2%.
Starbucks has a market cap just over $119 billion, and its shares have returned 24% year to date through July 23.
Ford Motor Co. (F)
Ford is one of Detroit’s “Big Three” automakers, alongside General Motors Co. (GM) and Stellantis NV (STLA), and it remains one of the most recognizable names in American manufacturing. The Dearborn, Michigan-based company has a market value of about $58 billion.
Ford designs and sells cars, trucks, SUVs, commercial vans, performance cars and Lincoln luxury vehicles. Vehicle sales generate most of its revenue, while Ford Credit provides financing and leasing and Ford Pro sells commercial vehicles, software and services. The company generated $187.3 billion in revenue in 2025.
Ford is investing in hybrids and lower-cost electric vehicles, although its Model e EV division remains deeply unprofitable. Its dividend currently yields roughly 4.2%.
Vanguard Consumer Discretionary ETF (VCR)
If you want exposure to consumer spending without betting on a handful of individual stocks, the Vanguard Consumer Discretionary ETF is worth exploring.
The passively managed fund holds about 283 stocks and has roughly $6.8 billion in assets under management.
VCR tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index, covering large-, mid- and small-cap U.S. companies.
Its largest holdings include Amazon.com Inc. (AMZN), Tesla Inc. (TSLA), Home Depot Inc. (HD), McDonald’s Corp. (MCD), TJX and Starbucks.
Still, VCR is fairly concentrated: Two “Magnificent Seven” stocks, Amazon and Tesla, accounted for about 37% of the underlying index as of June 30. VCR also has a very low expense ratio of 0.09%.
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9 Best Consumer Discretionary Stocks and ETFs to Buy in 2026 originally appeared on usnews.com
Update 07/24/26: This story was published at an earlier date and has been updated with new information.
