Skip to Content
Our Picks

4 Consumer Stocks in the Bargain Bin

These stocks have sold off as they face various headwinds, but we think they're trading at attractive valuations.

Mentioned: , , , ,

The consumer cyclical sector hasn't had a stellar year. Though it has managed to eke out a gain of 2.7% over the year to date through Sept. 12, it's the second-worst-performing stock sector, beating only healthcare. In the past four weeks, it slid 2.2%. 

Though it's hard to pinpoint the specific headwinds facing the wide-ranging sector, there are some broad themes affecting the companies we highlight below. For one, consumer spending on apparel has been weak. Also, of course, many retailers have felt major pressure from Amazon, which continues to disrupt the traditional brick-and-mortar retail model; without the cost burden of physical stores,  Amazon.com (AMZN) can price below traditional rivals and drive recurring traffic online, says Morningstar sector strategist RJ Hottovy. 

To view this article, become a Morningstar Basic member.

Register for Free

Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.