Looking to capitalize on the next wave of consumer spending? The Consumer Discretionary Improvers portfolio is designed as a sector ETF alternative, targeting the best growth stocks in the consumer cyclical space for Q1 2026 and beyond. With a focused strategy leveraging a Tradestie Score of 60.39/100, this portfolio of 10 carefully selected holdings prioritizes companies poised for recovery and expansion in a dynamic market. Heavy on consumer cyclical stocks at 72% allocation, it offers exposure to retail and leisure trends while diversifying slightly into healthcare stocks (10%), technology sector (10%), and industrials (9%).
The stock selection shines with top holdings like Burlington Stores Inc (BURL), Innoviz Technologies (INVZ), and Bath & Body Works Inc (BBWI), each at 11.7%, representing undervalued stocks with strong potential for 2026 market outlook gains due to robust consumer demand and innovative offerings. Other notable picks include Alkermes Plc (ALKS) in healthcare, The Cheesecake Factory (CAKE), and Automatic Data Processing Inc (ADP) in technology, showcasing resilience and growth metrics at current valuations. Companies like Gildan Activewear Inc (GIL), Pool Corporation (POOL), Fox Factory Holding Corp (FOXF), and BorgWarner Inc (BWA) round out the list, blending cyclical strength with operational efficiency—ideal for investors eyeing the best growth stocks for 2026.
Perfect for the aggressive growth investor or those seeking alternatives to passive income seekers’ strategies, this portfolio suits anyone building a retirement portfolio with a medium-term horizon. However, key considerations include market volatility tied to consumer spending cycles and economic slowdown risks in the consumer cyclical sector. With a Diversification Score of 54.9/100, it’s not without concentration risks, so staying updated on sector-specific factors is crucial for success in this exciting investment journey.