Consumer Cyclical: The Themes Driving Retail's Rebound
Amazon continues to linger as a disruptive threat, but the market is coming around to those retailers offering specialization, convenience, and experience.
The market continues to favor consumer cyclical names, with the group continuing to trade at a weighted average price/fair value of 1.05 (roughly in line with the 1.04 ration the group traded at last quarter). We continue to attribute the bullish market sentiment on a number of factors, including healthy consumer sentiment in the U.S. and many other developed nations, low unemployment rates and wage rate increases that are helping to drive middle class consumption globally, and equity and housing market conditions that have been conducive to wealth effect spending.
R.J. Hottovy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.