USA - Jenny Harrington recommends these two services stocks for 2023

U.S consumer will continue to spend on services even if the economy slides into a mild recession in 2023, says Jenny Harrington of Gillman Hill Asset Management.

Harrington recommends owning Marriott stock

Enormous spending was a feature of the pandemic. Following more than two years of restrictions, she added, people are now looking forward to spending on experiences.

To that end, a stock she likes for the next year is Marriott International Inc ( NASDAQ: MAR ) that’s roughly flat for the year at writing. On CNBC’s “Worldwide Exchange” , Harrington said:

Even though it’s not at a cheap valuation, it’s got huge earnings growth ahead. So, that’s to me is one of those services stocks [that will do good in 2023].

Harrington’s view is in line with Wall Street that also recommends buying Marriott stock here . Earlier this year, Marriott CEO Tony Capuano expressed confidence that higher prices could sustain beyond the busy summer season ( detailed here ).

Harrington is also bullish on JetBlue Airways

Another one that Harrington likes to play continued spending on services is JetBlue Airways Corporation ( NASDAQ: JBLU ) that bought Spirit Airlines in 2022 to become the fifth major U.S. air carrier.

We also own JetBlue. We’ve already seen their earnings start to return very nicely. I think people will continue to spend on travel.

In its latest reported quarter , JetBlue swung to an adjusted profit of 21 cents a share from 58 cents of loss in the prior quarter.

Versus its year-to-date high, the stock is down more than 50% that makes it attractive in terms of valuation as well.

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