Can Consumer Tailwinds Keep Retail Stocks In The Pink In 2024?
Portfolio Pulse from Neil Dennis
Bank of America estimates a $68 billion consumer tailwind in 2024 from social security changes and lower gas prices, potentially supporting retail stocks. The tailwind includes a $76 billion increase from social security and $37 billion from lower gas prices, offset by a $23 billion reduction in SNAP benefits and $22 billion from resumed student loan payments. The economy's health and job market will be crucial for consumer spending. Bank of America recommends selective stock picks, favoring defensive names and avoiding big-ticket items. It suggests O'Reilly Auto (ORLY), Genuine Parts (GPC), Driven Brands (DRVN), Mister Car Wash (MCW), Five Below (FIVE), and Ollie's (OLLI) as preferred stocks. Millennials face a drag from student loan repayments, and few will benefit from tax refunds due to inflation adjustments.
December 05, 2023 | 8:38 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Driven Brands is among Bank of America's selective stock picks in the retail sector, which could gain from the anticipated consumer tailwinds in 2024.
Driven Brands is recommended by Bank of America, suggesting potential growth due to increased consumer spending from the expected tailwinds in 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Five Below is recommended by Bank of America as a defensive stock in the retail sector, with potential gains from the consumer tailwinds expected in 2024.
Five Below is favored by Bank of America, which could indicate a positive performance due to the anticipated increase in consumer spending in 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Genuine Parts is favored by Bank of America as a defensive stock in the retail sector, which may see gains from the projected consumer tailwinds in 2024.
Genuine Parts is selected by Bank of America as a preferred stock, likely to benefit from the positive consumer spending environment expected in 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Mister Car Wash is selected by Bank of America as a defensive stock in the retail sector, which may benefit from the consumer tailwinds projected for 2024.
Mister Car Wash is part of Bank of America's stock selection, indicating a potential upside from the positive consumer spending outlook for 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Ollie's is among the selective stock picks by Bank of America in the retail sector, poised to benefit from the consumer tailwinds forecasted for 2024.
Ollie's is included in Bank of America's selective stock recommendations, suggesting a potential benefit from the expected consumer spending boost in 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
O'Reilly Auto is recommended by Bank of America as a defensive stock pick in the retail sector, potentially benefiting from consumer tailwinds in 2024.
O'Reilly Auto is highlighted as a defensive stock that could benefit from increased consumer spending due to the anticipated tailwinds in 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80