Goldman Sachs Predicts Extended Disinflation: These 3 Consumer Categories Could See Significant Price Drops
Portfolio Pulse from Piero Cingari
Goldman Sachs predicts a larger-than-expected drop in core inflation for June and a continued downward trend in the consumer price index (CPI) inflation. The firm forecasts a decrease in used car prices, a decline in travel-related categories due to negative residual seasonality, and a moderate slowdown in shelter inflation. Companies operating in the used car market and house rental market may be impacted.

July 11, 2023 | 12:46 pm
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NEGATIVE IMPACT
American Homes 4 Rent may be impacted by a moderate slowdown in shelter inflation.
A slowdown in shelter inflation could lead to lower rental revenues for American Homes 4 Rent, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
AutoNation may experience margin pressures due to lower auction prices for used cars.
Lower auction prices for used cars could lead to lower revenues for AutoNation, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
AvalonBay Communities may be impacted by a moderate slowdown in shelter inflation.
A slowdown in shelter inflation could lead to lower rental revenues for AvalonBay Communities, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Copart may experience margin pressures due to lower auction prices for used cars.
Lower auction prices for used cars could lead to lower revenues for Copart, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Carvana may experience margin pressures due to lower auction prices for used cars.
Lower auction prices for used cars could lead to lower revenues for Carvana, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Equity Residential may be impacted by a moderate slowdown in shelter inflation.
A slowdown in shelter inflation could lead to lower rental revenues for Equity Residential, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Essex Property Trust may be impacted by a moderate slowdown in shelter inflation.
A slowdown in shelter inflation could lead to lower rental revenues for Essex Property Trust, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Invitation Homes may be impacted by a moderate slowdown in shelter inflation.
A slowdown in shelter inflation could lead to lower rental revenues for Invitation Homes, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
CarMax may experience margin pressures due to lower auction prices for used cars.
Lower auction prices for used cars could lead to lower revenues for CarMax, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Lithia Motors may experience margin pressures due to lower auction prices for used cars.
Lower auction prices for used cars could lead to lower revenues for Lithia Motors, potentially impacting its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80