CPRI - Consumer discretionary stocks to like amid the spending boom

Wells Fargo takes a deep dive into some consumer spending trends in the current environment that includes some post-COVID shifts, sequential wage growth and fading stimulus benefits. The overall take is that the amount of dry power available suggests strong consumer spending growth will sustain past the early reopening phase. The Wells analyst team sees the restaurant sector set for gains this year. The firm likes companies exposed to a higher income consumer like BJ's Restaurants (BJRI), Cheesecake Factory (CAKE), Chipotle (CMG) and Starbucks (SBUX) - and chains set to "exploit demand" in new channels and fresh concepts like CAKE, CMG, MCD and Wingstop (WING). The food service sector is said to be positively leveraged to that theme. Earnings power beyond even pre-COVID levels is seen for Performance Food Group (PFGC), US Foods (USFD) and Sysco (SYY). Gains for aftermarket auto part stocks are expected to continue amid a favorable

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Consumer discretionary stocks to like amid the spending boom