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Quarter-End Insights

Consumer Cyclical Opportunities Still Exist

Consumer cyclical names with moats are still well-positioned despite macro and inflation pressures.

Mentioned: , , , , , , , , ,

  • Mixed macroeconomic signals, but better-run firms should still be able to pull levers in order to meet full-year expectations.
  • Inflation is still a prominent headwind, but it's important to delineate secular and cyclical pressures.
  • The market won't reward consumer companies for sitting on cash stockpiles, so expect share repurchases, dividends, and acquisitions to accelerate.

Peter Wahlstrom does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.