XLY - XLY: Poor Valuation Grades Overshadow Strong Profitability Grades For Top 10 Holdings
2024-06-05 14:29:40 ET
Summary
- Mixed signals in the consumer discretionary sector, due to high inflation and interest rates, are leading me to assign a Hold rating on XLY.
- There is a risk of a recession and underperformance due to overvaluation and potential decrease in consumer spending.
- Consumer sentiment is declining, and rising unemployment could further impact the sector's recovery.