Goldman Sachs Survey Shows Strength in 'Middle Income' and 'Millennial' Consumers (AMZN) (M) (SBUX) (F) (FM) (MNST) (ROST)
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Price: $176.59 --0%
Rating Summary:
65 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 2
Rating Summary:
65 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 2
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The U.S. consumer continues to heal - slowly, but steadily, according a survey by Goldman Sachs. The survey suggests 'middle income' and 'Millennial' strength.
Stock levered to the 'middle-income' theme include Amazon.com Inc. (Nasdaq: AMZN), Ascena Retail Group Inc. (Nasdaq: ASNA), Carnival Corporation (NYSE: CCL), Carter's, Inc. (NYSE: CRI), Estee Lauder (NYSE: EL), Express Inc. (NYSE: EXPR), Ford Motor Co. (NYSE: F), General Motors Company (NYSE: GM), Macy's, Inc. (NYSE: M), Monster Beverage Corporation (Nasdaq: MNST), Panera Bread Company (Nasdaq: PNRA), PVH Corp. (NYSE: PVH), Ross Stores Inc. (Nasdaq: ROST), Starbucks Corporation (Nasdaq: SBUX), Molson Coors Brewing Company (NYSE: TAP), Target Corp. (NYSE: TGT), and Urban Outfitters Inc. (URBN)
Millennia-stocks include Amazon, Domino's Pizza, Inc. (NYSE: DPZ), Ford, GM, GNC Holdings Inc. (NYSE: GNC), Macy’s, Monster Beverage, Starbucks, Steven Madden, Ltd. (Nasdaq: SHOO), Target, Urban Outfitters, and Quiksilver Inc. (NYSE: ZQK).
"At a high level, in spite of some recent retail choppiness of late, consumer confidence and overall discretionary spending continued their gradual post-recession recovery. And our survey suggests that the recent December/January slowdown is likely transitory. Heading into 2014, consumers identified a need to save more and healthcare costs as major concerns, ahead of other factors such as home prices or job security. Our analysis suggests concerns that incremental healthcare costs will replace the payroll tax hike as new consumer spending headwinds blow over," said analyst Michael Kelter.
"The overall increases in optimism and spending in our survey were disproportionately driven by 18- to 34-year-old Millennials. This group, at 20% of all consumer expenditures, is not big enough to drive the economy, but does drive several of our covered stocks. Our analysis suggests that this group did not benefit much from the wealth effect, a key driver in 2013, but will disproportionately benefit from continued labor market stabilization in 2014 and beyond," he added
Stock levered to the 'middle-income' theme include Amazon.com Inc. (Nasdaq: AMZN), Ascena Retail Group Inc. (Nasdaq: ASNA), Carnival Corporation (NYSE: CCL), Carter's, Inc. (NYSE: CRI), Estee Lauder (NYSE: EL), Express Inc. (NYSE: EXPR), Ford Motor Co. (NYSE: F), General Motors Company (NYSE: GM), Macy's, Inc. (NYSE: M), Monster Beverage Corporation (Nasdaq: MNST), Panera Bread Company (Nasdaq: PNRA), PVH Corp. (NYSE: PVH), Ross Stores Inc. (Nasdaq: ROST), Starbucks Corporation (Nasdaq: SBUX), Molson Coors Brewing Company (NYSE: TAP), Target Corp. (NYSE: TGT), and Urban Outfitters Inc. (URBN)
Millennia-stocks include Amazon, Domino's Pizza, Inc. (NYSE: DPZ), Ford, GM, GNC Holdings Inc. (NYSE: GNC), Macy’s, Monster Beverage, Starbucks, Steven Madden, Ltd. (Nasdaq: SHOO), Target, Urban Outfitters, and Quiksilver Inc. (NYSE: ZQK).
"At a high level, in spite of some recent retail choppiness of late, consumer confidence and overall discretionary spending continued their gradual post-recession recovery. And our survey suggests that the recent December/January slowdown is likely transitory. Heading into 2014, consumers identified a need to save more and healthcare costs as major concerns, ahead of other factors such as home prices or job security. Our analysis suggests concerns that incremental healthcare costs will replace the payroll tax hike as new consumer spending headwinds blow over," said analyst Michael Kelter.
"The overall increases in optimism and spending in our survey were disproportionately driven by 18- to 34-year-old Millennials. This group, at 20% of all consumer expenditures, is not big enough to drive the economy, but does drive several of our covered stocks. Our analysis suggests that this group did not benefit much from the wealth effect, a key driver in 2013, but will disproportionately benefit from continued labor market stabilization in 2014 and beyond," he added
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