PSCD

Weekly Report: what happened at PSCD last week (0415-0419)?

Consumers Binge Despite Higher Interest Rates, And The Fed Watches Them Nervously

Retail sales in March increased by 0.7% seasonally adjusted, with a year-over-year jump of 4.0%. Total retail sales jumped 10.1% in March from February to $712 billion. Ecommerce, food services, and general merchandise retailers were the biggest drivers of growth.

U.S. Retail Sales Rack Up Solid March Numbers

U.S. Retail sales smashed expectations in March, with total sales up 0.7% and ex-autos up 1.1%. Non-store retailers and bars and restaurants saw the biggest year/year increase. Five out of the 10 consumer-related industries have turned positive. The latest retail sales data reflects strong consumer buying.

U.S. Household Spending Holds Firm

Retail sales beat all expectations. US retail sales rose a very robust 0.7% month-on-month in March versus 0.4% expected. With jobs, inflation, and activity all beating expectations, the Federal Reserve is in no position to cut interest rates. We expect spending and inflation to slow, but the Fed won't be contemplating rate cuts.

Group 1 Makes Power Move in UK Market with Inchcape Auto Dealerships Buy Out

Group 1 Automotive, Inc. Disclosed a deal to buy the U.K. Automotive retailing business and related owned real estate from a subsidiary of Inchcape PLC for around $439 million. The buyout is expected to close in the third quarter of 2024. Investors can gain exposure to the stock via Northern Lights Fund Trust.

Weekly Report: what happened at PSCD last week (0408-0412)?

3 Reasons To Consider ODP Corporation

The ODP Corporation's stock has underperformed its peers in the small-cap discretionary space over the past 6 months. Topline dynamics in H2 could pick up, and the company is poised to grow at a CAGR of 10% over the next three years. ODP has been consistently generating annual free cash flow of over $200m. The company has a low-cost business model and is a good value at a forward P/E of 7.43.

Top Seeking Alpha Quant picks in S&P 500 Consumer Discretionary sector ahead of earnings

Consumer Discretionary Select Sector SPDR Fund ETF (XLY) has underperformed the S&P 500 in the past 12 months. The consumer discretionary sector had the largest net selling and was among the worst-performing sectors last week. Goldman Sachs expects strong 1Q EPS growth in the consumer discretionary industry. The sector's growth has been slower than other industries due to inflation and interest rate spikes.