Consumer discretionary businesses are levered to the highs and lows of economic cycles. This sensitive demand profile can cause the industry to underperform when macro uncertainty enters the fray, and over the past six months, its 3.4% return has fallen short of the S&P 500’s 8.2% gain.

While some companies have durable competitive advantages that enable them to grow consistently, the odds aren’t great for the ones we’re analyzing today. On that note, here are three consumer stocks we’re swiping left on.

Lincoln Educational (LINC)

Market Cap: $855.1 million

Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Why Should You Dump LINC?

1. Number of enrolled students has disappointed over the past two years, indicating weak demand for its offerings
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Lincoln Educational is trading at $27.08 per share, or 35.6x forward P/E. To fully understand why you should be careful with LINC, check out our full research report (it’s free).

Hilton Grand Vacations (HGV)

Market Cap: $3.88 billion

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE: HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Why Are We Out on HGV?

1. Performance surrounding its conducted tours has lagged its peers
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Hilton Grand Vacations’s stock price of $45.36 implies a valuation ratio of 11.4x forward P/E. Check out our free in-depth research report to learn more about why HGV doesn’t pass our bar.

Ruger (RGR)

Market Cap: $597 million

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Why Is RGR Risky?

1. Annual revenue growth of 1.4% over the last five years was below our standards for the consumer discretionary sector
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.9% for the last two years
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $37.48 per share, Ruger trades at 24.2x forward P/E. Read our free research report to see why you should think twice about including RGR in your portfolio.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.