WSM - Home Depot Ulta Beauty and Advance Auto among top consumer stock picks at JPMorgan

JPMorgan digs deep into the retail sector as it factors in a changing consumer landscape that includes the U.S. economy reopening fully and stimulus fading. JPMorgan says its favorite names in the sector are Advance Auto Parts (AAP), Academy Sports and Outdoors (ASO), BJ's Wholesale (BJ), Driven Brands (DRVN), Genuine Parts (GPC), Target (TGT) and Ulta Beauty (ULTA) as it takes a favorable sub-sector view of auto parts and discounters broadly. The firm keeps Williams-Sonoma (WSM) and Wayfair (W) slotted a Underweight due to concerns over wallet normalization that could accelerate over the summer when costs start to creep up. JP also keeps an "own the pro" theme going with Home Depot (HD) favored over Lowe's (LOW). Costco (COST) and Walmart (WMT) are also viewed favorably as hybrid re-opening plays with sales comparisons that ease earlier than other retailers and seen as names that could grow EPS in 2022. See

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Home Depot, Ulta Beauty and Advance Auto among top consumer stock picks at JPMorgan