UPDATE: Investors, the latest data reveals the 12 best consumer cyclical stocks to buy right now, as identified by Morningstar analysts on September 18, 2025. With the Morningstar US Consumer Cyclical Index rising 6.52% this year, these undervalued stocks are poised to attract attention during this economically dynamic period.
This list comes at a crucial moment when consumers are expected to increase spending on discretionary items as the economy grows. The identified stocks not only reflect potential for growth but also showcase significant undervaluation, making them attractive investments for discerning investors.
Here’s a closer look at the 12 best consumer cyclical stocks to buy now:
- Under Armour (UA) – Trading 65% below its fair value estimate of $13.80, Under Armour struggles to regain its competitive edge in the athletic apparel market. Analysts highlight its very high uncertainty rating and lack of a moat, indicating potential challenges ahead.
- VF Corporation (VFC) – With a price 62% below its fair value of $39.50, VF Corporation faces significant competition but aims to save $600 million through its strategic turnaround plan.
- Adient (ADNT) – Adient, a major player in auto seating, is seen as 61% undervalued against its $64 fair value estimate. Despite market shifts, its strong position in the automotive sector remains intact.
- Bath & Body Works (BBWI) – Currently trading 58% below its fair value estimate, this specialty retailer showcases resilience with a projected sales growth of 3% annually through 2029.
- Caesars Entertainment (CZR) – Trading at 57% undervaluation, Caesars is poised for growth despite uncertainties in the gaming sector, leveraging a robust portfolio of domestic properties.
- Kohl’s (KSS) – This department store chain is also 57% undervalued but faces challenges in a competitive retail environment, especially with an interim CEO leading the charge.
- Winnebago Industries (WGO) – With a 55% discount to its fair value of $75, Winnebago capitalizes on its expansion into the marine segment, aiming to increase its market share.
- Capri Holdings (CPRI) – Capri is trading at 52% under its fair value and must navigate challenges in the luxury market, particularly with its flagship Michael Kors brand.
- CarMax (KMX) – This auto retailer, valued at 50% below its fair value estimate, continues to thrive on customer satisfaction and innovative sales practices.
- Lululemon Athletica (LULU) – The athleisure brand is trading 42% below its fair value, with plans to expand its offerings and geographic reach significantly.
- Yum China (YUMC) – As the largest restaurant operator in China, Yum China faces economic pressures but is positioned to capture market share with its extensive network and brand loyalty.
- Gildan Activewear (GIL) – Rounding out the list, Gildan is 41% undervalued and maintains a strong foothold in the basic apparel market with a focus on cost efficiency.
These stocks have been selected based on their undervalued status and potential for growth, as indicated by Morningstar’s rigorous analysis. As consumer spending trends shift, these companies are expected to be at the forefront of the recovery. Investors should monitor these developments closely to capitalize on emerging opportunities in the consumer cyclical sector.
Stay tuned for more updates as we track how these stocks perform in the evolving economic landscape.
