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Quarter-End Insights

Our Outlook for Consumer Cyclical Stocks

Macro and cyclical headwinds are prevalent, but with consumers still spending and firms cautiously allocating capital, low-single-digit growth is still achievable.

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  • We're cautiously optimistic as consumers are still spending, but growth rates are slowing and macro concerns linger.
  • A strong U.S. dollar has hit margins, but underlying volume growth is generally OK.
  • Management teams are routing free cash toward share repurchases and dividends to boost total returns.

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