2 big buys (and the next steps for consumer stocks)

Consumer stocks are split into two distinct categories - those that are sensitive to economic cycles (discretionaries) and those that aren't (staples). Both, however, have been on a tear over the past 12 months, despite a cost of living crisis that is continuing to take a bite out of Australians' wallets.
Take Lovisa, for instance, which has soared 59% over the past 12 months. Or Wesfarmers, up 35%. Or Nick Scali, up 44%. Meanwhile, consumer staples stocks, like Bega Cheese, Inghams, and Treasury Wine have risen 41%, 35% and 11% respectively.
All this is to say that the sector is looking pretty hot - other than the supermarkets, of course. However, with savings now starting to dry up, and the economy beginning to slow, how much longer can these stocks hold up?
To find out, Livewire's Ally Selby was joined by two consumer-focused analysts in Alphinity Investment Management's Jacob Barnes and Wilson Asset Management's Hailey Kim.
They share where they are seeing opportunities within the two sectors, some of the trends they believe investors should be aware of and outline which factors will be important to success over the coming 12 months.
Plus, they analyse three major players within the sectors and share their highest conviction buys right now.
Note: This episode was recorded on Wednesday 3 July 2024. You can read an edited transcript below.
www.livewiremarkets.com/wires...

[@stocksunderthehood]

Thanks for the great information. Good to see Aristocrat getting a mention more these days. Now I'm just waiting for when the analysts will start to view it more as a tech stock than just a consumer disc. stock.

[@hotchinahk]

Thank you for this segment of by hold sell, have a nice day :)