How to Invest in the Strong U.S. Consumer -- 8 Top Stock Bets
There is life beyond investing in Amazon (AMZN) - Get Amazon.com Inc. Report as a play on a healthy U.S. consumer.
And it would be wise for investors to find that life ahead of what could be a bumper holiday shopping season. The U.S. economy added 213,000 jobs in June, handily beating Wall Street estimates for 195,000. Average hourly earnings rose a respectable 2.7% in June from twelve months earlier. The unemployment rate rose slightly to 4% from 3.8%, still suggesting economic strength nonetheless.
Meanwhile, households continue to benefit from rising home values, a cash infusion from the Trump tax plan and more companies paying out fatter dividends.
"Our positive industry [consumer] sales outlook is bolstered by some powerful discretionary spending tailwinds," says Credit Suisse analyst Michael Binetti. The analyst breaks down his consumer bullishness into these areas:
- Lower personal income tax withholdings retailed to 2018 tax cuts.
- Ongoing broad-based U.S. wage increases.
- One-time bonuses paid by some U.S. companies after receiving a tax break in 2018.
TheStreet Recommends
The Play
Credit Suisse offers up a host of stock ideas on the surging U.S. consumer below. The companies are plays not just on the U.S. consumer, but also firm-specific reasons.
- Home Depot (HD) - Get Home Depot Inc. (The) Report
- Lowe's (LOW) - Get Lowe's Companies Inc. Report
- Marriott Vacation Worldwide (VAC) - Get Marriott Vacations Worldwide Corporation Report
- Hilton Grand Vacations (HGV) - Get Hilton Grand Vacations Inc. Report
- PVH Corp. (PVH) - Get PVH Corp. Report
- Ralph Lauren Corporation (RL) - Get Ralph Lauren Corporation Report
- Dollar Tree (DLTR) - Get Dollar Tree Inc. Report
- US Foods Holding (USFD) - Get US Foods Holding Corp. Report
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