These apparel companies could perk up on positive data

Consumer cyclical stocks have the wind at their backs, but these three stocks remain undervalued.

Vikram Barhat 16 August, 2017 | 5:00PM

This year is shaping up to be a good year for U.S.-based consumer cyclical stocks, also known as consumer discretionary stocks. The United States so far has seen positive economic data, rising interest rates, historic low volatility and cheery job numbers. All these indicators point to a humming economy, the central bank's confidence in it, and strength in consumer spending.

The environment couldn't be more favourable for consumer discretionary companies to expand, their sales to grow and their stocks to soar. The U.S. economy is in a relatively healthy place, consumer confidence is rising, and unemployment is sitting at 4.3%, the lowest it's been in 16 years.

The S&P 500 Consumer Discretionary Index has returned an impressive 12.9% (in U.S. dollars), higher than the 11.9% gains for the S&P 500, on a year-to-date basis, as of Aug. 9, 2017, according to the S&P Dow Jones Indices.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Hanesbrands Inc12.67 USD-5.59
Under Armour Inc C13.04 USD-3.12
VF Corp76.39 USD-1.10

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.