Consumers have rarely been under the kind of pressure they face today. Unemployment in May crept up to 4% while inflation stood at 3.3%, unchanged from the month before. With the Federal Reserve holding interest rates steady at 5.25% to 5.5%, the cost of borrowing remains high.

That’s like why the University of Michigan’s Consumer Sentiment Index fell 5% from April. Many of the jobs being created are just part-time employment forcing families to work two jobs (or more) just to make ends meet. Consumers are forced to turn to using credit cards but delinquencies are on the rise. The Fed says 9% of all credit cards and 8% of auto loans are delinquent.

It’s a gloomy backdrop and stands at odds with the go-go sentiment on Wall Street. As the market indices hit new all-time highs, consumers are whistling past the graveyard. 

Investors, though, can use that to their advantage. While shoppers are reining in their spending to focus on basics, it is uneven as a number of businesses show strength. Below are seven top consumer stocks to buy now that are profiting from the dicey economy. 

Best Buy (BBY)

Consumer electronics retailer Best Buy (NYSE:BBY) continues to prove its resilience in all markets. It remains profitable even as sales slumped 6.5% due to same-store sales falling 6.1%. Earnings rose to $1.20 per share from $1.15 a year ago. Best Buy stock, however, is up 15% year-to-date and 25% high since reporting earnings one month ago.

There is good reason for the optimism. The PC market is basically at rock bottom with the potential for a significant sales boost to come. That’s because artificial intelligence (AI) PCs are starting to hit store shelves. They promise to revitalize the market with new power and capabilities that hasn’t been seen in many years.

The latest AI PC chips from Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) will be released in the coming months and Apple (NASDAQ:AAPL) will be bringing its AI-powered M4 chip to all MacBooks. 

Computers still account for a large percentage of Best Buy’s revenue. Although segment revenue fell 13% in the first quarter, there could be a surge on the horizon. But even if it doesn’t materialize, Best Buy has shown it is able to navigate treacherous waters profitably.

Booking Holdings (BKNG)

Leading global online travel agent Booking Holdings (NASDAQ:BKNG) is the next consumer stocks to buy now. Despite a glum economy, travel remains a bright spot. Certainly the “revenge travel” phenomenon that followed the pandemic has run its course but the industry is still forecasting growth. While demand this year will be as robust as it was in 2023, consumers are seeking out maximum value for their dollars spent. Booking’s family of platforms helps them achieve it.

Booking operates some of the largest travel platforms in the world, including Agoda, Priceline.com and Kayak. It offers an extensive network of properties in almost every country globally making it a natural to attract the largest percentage of travelers.

Global room nights increased 17% in 2023 from the year before and are now 24% above 2019 pre-pandemic levels. They increased another 9% in the first quarter while rental car days jumped 11% and airline ticket growth soared 33% from the year-ago period.

Travel could very well be pinched if the economy deteriorates further. If inflation doesn’t start heading appreciably lower and the Fed doesn’t cut rates or not as much as expected, it could hurt travel and tourism. But for those who can and will travel, turning to Booking Holdings for the opportunity will make it smooth sailing.

Crocs (CROX)

Footwear specialist Crocs (NASDAQ:CROX) stumbled over the acquisition last year of the HeyDude brand but quickly picked itself up and dusted itself off. Due to the ongoing strength of its core plastic shoe, CROX stock is up 65% in 2024 and has doubled off its 52-week low.

It seems hard to believe the staying power of Crocs shoes. Initially a favorite amongst healthcare workers and others who were on their feet all day, the brand found favor in all segments of the market, even internationally. Sales in foreign markets are growing faster than domestic sales and have almost reached parity.

At the start of the year I noted how robust Crocs brand sales were and highlighted the stock’s very attractive valuations. “This is a deeply discounted stock with a still-valuable brand name that can run higher,” I wrote at the time but the case remains true today.

Despite the phenomenal run-up in the stock, Crocs still trades at 11 times trailing earnings and estimates, goes for twice its sales and a bargain-basement 11x the free cash flow (FCF) it produces. CROX stock will wear out a lot of shoe leather as it runs higher from here.

Genuine Parts (GPC)

Aftermarket auto parts retailer Genuine Parts (NYSE:GPC) is a stock primed to take advantage of this dicey economy and any recovery that follows. 

Elevated inflation and interest rates have taken a toll on both new and used car sales. Although prices are down from their post-pandemic record, financing a new car is still too expensive. Dealers are resorting to incentives once again to lure in buyers and reduce rising inventories. It’s not much better for used car values either as those dealer incentives keep buyers away from used car lots.

It makes it better just to keep your existing car working. The average age of all vehicles on the road has crept up to 12.6 years but for cars it stands at 14 years. Buying parts to keep them working is keeping Genuine Parts busy. It operates the NAPA Auto Parts chain of retail stores.

Global automotive sales rose 2% in the first quarter to $3.6 billion with segment profits rising 3.2% to $273 million.

The auto parts stock raised its full-year earnings guidance to $9.88 per share at the midpoint from its previous estimate of $9.80 per share. With the stock up less than 2% in 2024 and trading at just 13 times next year’s earnings estimates Genuine Parts is a solid consumer stock to buy.

Skechers (SKX)

Another footwear specialist deserving your attention is sneaker-maker Skechers (NYSE:SKX). The company is targeting $10 billion in sales eventually and while the North American market remains an important component of that, it is sales to international markets that will push it over the threshold.

Foreign sales of Skechers sneakers represent 65% of total revenue of $2.25 billion, which was a company record. They are also growing twice as fast as domestic sales, 15.2% versus 7.8%. More importantly, the direct-to-consumer (DTC) market is what is firing that growth, here and abroad. That’s key because DTC sales cut out the middleman and boost profits. Gross profit margins on DTC sales stands at 65.7% whereas the wholesale market is 44.7%.

The growth also suggests Skechers hasn’t lost any consumer mindshare over the years. They still find its footwear desirable and are willing to pay up for it.

Skechers stock is up 15% year-to-date and more than 56% above recent lows. Yet shares still trade at an attractive 11 times earnings estimates, less than twice sales and 17x FCF. 

Chewy (CHWY)

According to the American Pet Products Association, U.S. owners will spend $150.6 billion on their pets this year, up 2.4% from the $147 billion they spent in 2023. The greaterst percentage will be spent on food and treats, or some $64.4 billion, with another $38.3 billion going to veterinarian care and products.

That plays to the strengths of online petcare retailer Chewy (NASDAQ:CHWY). The majority of its sales come from pet food and treats but also supplies, pet medications and petcare products. The retailer is also expanding into new channels such as veterinary clinics, which hold the promise of higher margins. In April, Chewy opened its first two clinics and more are expected soon.

Because of the ongoing trend towards humanizing our pets, consumers are willing to spend more and pay up, whether its for food, toys or vet care. It provides a large, motivating force behind Chewy stock. Shares have bounced 70% off their 52-week low but with renewed sales strength the stock should go higher still.

e.l.f. Beauty (ELF)

It looked as though e.l.f. Beauty (NYSE:ELF) had run its course. The cosmetics and beauty care company had tripled in value last year but after starting off 2024 strong, stumbled hard. Shares lost more than a quarter of their value. That’s now a thing of the past. ELF stock is up 42% year-to-date and should keep charging ahead.

As I noted last month before the rebound, teens view e.l.f. Beauty as the No. 1 cosmetics brand in the country. According to Piper Sandler’s Taking Stock With Teens semi-annual survey, e.l.f. has a 38% share of the market, 16 percentage points more than the next leading brand. And teens are spending more money on cosmetics than at any time since 2018. The survey found teens are spending an average of $339 on cosmetics.

The stock is currently trading at $205 per share and though it looks expensive at 98 times earnings, that very much in line with its average over the past five years. It is somewhat elevated over the period since it went public but a good argument could be made that it is worth the premium being charged.

Particularly during difficult economic times, cosmetics are an items consumers are willing to splurge on. e.l.f. Beauty remains a smart consumer stock to buy today.

On the date of publication, Rich Duprey held a LONG position in GPC stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.