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Given the recent consumer spending uptick, is retail a buy?

April 26, 2017buy consumer given recent retail Spending uptick

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Given the recent consumer spending uptick, is retail a buy?

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10 Posted

When picking stocks in the most battered sectors, be careful that the companies are truly strong and not just lifted by the rally. Some retail names will continue to struggle because of unemployment, and we would still be cautious here. We think that Best Buy (BBY, Fortune 500) will be a survivor because Circuit City isn’t around, and people will still buy electronics. We think that Urban Outfitters (URBN) has built a strong brand and is well managed. It, too, is a survivor. Are there any other battered sectors you would invest in now? We’re looking closely at financial services. There are only a handful of big banks now, and asset managers are consolidating, too. The large commercial bank that stands out is JP Morgan (JPM, Fortune 500) because they stand to benefit from share gains in commercial and investment banking.