Our Outlook for Consumer Cyclical Stocks
Macroeconomic uncertainty and increased price competition paint a troubling fourth-quarter picture for consumer cyclical names.
Quarter-End Insights
Mentioned: LVMH Moet Hennessy Louis Vuitton SE (MC)
, Industria De Diseno Textil SA (ITX)
, Hennes & Mauritz AB (HM B)
, Fast Retailing Co Ltd (9983)
, Compagnie Financiere Richemont SA (CFRHF)
, American Eagle Energy Corp (AMZGQ)
, Hennes & Mauritz AB (HNNMY)
, Compagnie Financiere Richemont SA (CFR)
, LVMH Moet Hennessy Louis Vuitton SE (LVMUY)
, MGM China Holdings Ltd (02282)
- Increased visibility behind Federal Reserve policy could support consumer cyclical stocks over the near term, but disconnect still exists between the global macroeconomic picture and valuations.
- Expect price competition to remain a key theme during the 2013 holiday season and beyond.
- Apparel retailers are set for a dire finish to the year as traffic and conversion continue to disappoint.
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R.J. Hottovy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.