The consumer discretionary sector has been one of the market’s brightest sectors in 2015, and the Consumer Discretionary SPDR (ETF) XLY 1.19% has gained 11.5 percent versus the S&P 500’s 0.7 percent gain year-to-date. For the first time in two months, Credit Suisse analysts have updated their top consumer discretionary stock picks in 10 different subsectors.
Here’s a full list of the names they chose.
1. Apparel & Footwear: Hanesbrands Inc. HBI 1.07%
Analyst Christian Buss sees the company as a “strong and steady cash flow generator” with the opportunity to grow earnings via acquisitions and a mix shift toward premium products.
2. Autos & Auto Parts: Magna International Inc. (USA) MGA 0.91%
Analyst Dan Galves believes the company will be “a key beneficiary of increasing vehicle globalization” and is confident that it can meet its 2017 revenue and margin targets.
3. Gaming & Lodging: Six Flags Entertainment Corp SIX 0.15%
Analyst Joel Simkins predicts the company will be able to capitalize on its pricing power in coming years, and he also likes the robust 4.3 percent dividend.
4. Homebuilding & Building Products: Caesarstone Sdot-Yam Ltd CSTE 2.66%
Analyst Mike Dahl sees “significant revenue and EBITDA growth over the next several years” and likes the company’s U.S. manufacturing capacity expansion and growing brand recognition. Caesarstone replaces Mohawk Industries, Inc. MHK 1.13% as the firm’s new top pick in the space.
5. Media, Cable & Satellite: Time Warner Inc TWX 0.67%
Analyst Omar Sheikh explained, “If we were to strip out HBO at valuations of $30 billion–$35 billion, the rest of Time Warner is currently trading at significant discounts to Disney and Fox.”
6. Packaged Food: Kellogg Company K 0.04%
Analyst Rob Moskow stated…
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