Consumer discretionary stocks have plenty of catalysts to drive them higher into year's end. Here are 13 picks to watch.
Consumer discretionary stocks put in a solid performance
through the first six months of 2021. But what's in store for the second half?
While rising concerns over the delta variant of COVID-19
could stall the sector's upside in the short term, the latter half of the year
could be even more rewarding than the first.
In its 2021 Midyear Equity Sector Outlook, Wells Fargo
suggests that the sub-sectors that were strongest prior to the pandemic will
most likely show leadership after a full reopening.
"We continue to favor internet & direct marketing
retail, which was a strong sub-industry going into the pandemic, grew in
importance throughout the pandemic, and we expect to exit the pandemic a
healthier/stronger industry than most, if not all, consumer
sub-industries," Wells Fargo's strategists say. "We also favor
discounters, mass-merchants and off-price retailers as we believe they will
likely benefit disproportionately from the multiple government stimulus
programs."
With this in mind, we have compiled a list of the 13 best
consumer discretionary stocks for the second half of 2021. If you're looking
for consumer-facing plays to position for more upside through year's end – a
time frame that encompasses both the back-to-school and holiday shopping
seasons – this list of companies might have something for you.
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