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18 handpicked stocks

Consumer Strength: The Retail Rebound

A surprising surge in U.S. retail sales, driven by strong automotive and home furnishing purchases, signals continued consumer strength despite economic headwinds. This theme focuses on retailers and manufacturers in these key discretionary sectors that are benefiting from the robust consumer demand.

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Author avatar

Han Tan | Market Analyst

Updated 2 days ago | Published at अगस्त 18

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

HD

Home Depot, Inc., The

HD

Current price

$407.20

LOW

Lowe's Companies Inc.

LOW

Current price

$256.36

RH

Restoration Hardware Holdings, Inc.

RH

Current price

$231.53

About This Group of Stocks

1

Our Expert Thinking

The unexpected 0.5% rise in U.S. retail sales signals consumer resilience despite economic headwinds. This group captures companies positioned to benefit from strong spending in motor vehicles and home furnishings, the key drivers of recent growth. Our analysts see this as evidence that American consumers remain confident and willing to spend on discretionary items.

2

What You Need to Know

This collection focuses on the consumer discretionary value chain, spanning from manufacturers to retailers. The companies operate in cyclical sectors that can be sensitive to economic changes, but current data suggests robust demand. These stocks may benefit from continued consumer strength, though they could face headwinds if spending patterns shift.

3

Why These Stocks

Each company was handpicked for its direct exposure to the automotive and home furnishing industries that drove July's retail surge. Professional analysts selected these stocks based on their positioning within the consumer discretionary supply chain, from manufacturing to retail operations, ensuring comprehensive coverage of this spending trend.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+18.91%

Group Performance Snapshot

18.91%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 18.91% over the next year.

13 of 18

Stocks Rated Buy by Analysts

13 of 18 assets in this group are rated Buy by professional analysts.

8.3% vs 4%

Group Growth vs Bank interest

This group averaged a 8.3% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚗

Motor Vehicle Momentum

Car sales jumped 1.6% in July, showing consumers are still making big-ticket purchases. This signals confidence in the economy and creates opportunities for automotive retailers and manufacturers.

🏠

Home Furnishing Surge

Furniture sales rose 1.4%, indicating people are investing in their homes despite economic uncertainty. This trend benefits retailers and manufacturers in the home goods space.

💪

Consumer Resilience

Despite inflation concerns, Americans are still spending on discretionary items. This unexpected strength could drive continued growth for companies in this retail rebound theme.

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