Our Outlook for Consumer Cyclical Stocks
While the U.S. economy still faces headwinds, we're projecting growth in 2011.
Quarter-End Insights
Mentioned: Lululemon Athletica Inc (LULU)
, OpenTable Inc (OPEN)
, Amazon.com Inc (AMZN)
, VF Corp (VFC)
, L Brands Inc (LB)
, Netflix Inc (NFLX)
, J. Crew Group, Inc. (JCG)
, Chico's FAS Inc (CHS)
, Lowe's Companies Inc (LOW)
, Advance Auto Parts Inc (AAP)
<< Return to Main Market Outlook Page
- While pockets of softness still exist, we expect another year of mid-single-digit growth among consumer cyclical firms in 2011 as the U.S. economy continues its slow recovery.
- Commodity headwinds remain a concern, but some manufacturers/retailers have several levers to mitigate the impact.
- With plenty of cash on the sidelines, merger-and-acquisition activity among consumer cyclical names will likely continue
Peter Wahlstrom has a position in the following securities mentioned above: AAPL. Find out about Morningstar’s editorial policies.