Consumer Cyclical: Poised to Perform in the Second Half
With macroeconomic stabilization, cost-efficiency efforts, improved inventory levels, and a relatively healthy consumer, we are optimistic about the sector.
In our opinion, the consumer cyclical sector appears poised for strong performance in the back half of 2016, fueled by consumer strength, global macroeconomic stabilization, and improved expense and inventory management. That said, much of this upside appears to be priced into the stocks with a market-cap-weighted price/fair value estimate ratio of 0.97 as of Aug. 31. We would be strategic in locating stocks with an attractive margin of safety.
Bridget Weishaar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.