10:39AM ET on Friday Dec 09, 2022 by MT Newswires
10:39 AM EST, 12/09/2022 (MT Newswires) -- The changing macro backdrop (inflation, rising rates and the impact on consumer spending) is expected to be key to earnings in 2023E for the retail & consumer stocks, writes BMO Capital's Stephen MacLeod, especially considering the expectation for an H1/23E mild recession.
Into 2023E, while the earnings path may not be linear, BMO believes investors should be tactically looking for entry points into
discretionary stocks for companies with resilient business models that can weather near-term macro pressures and emerge in a stronger competitive position when growth rebounds.
On this list: Aritzia (ATZ.TO), Gildan Activewear (GIL.TO) and Sleep Country (ZZZ.TO).
For investors wanting more defensive staples positioning in the meantime, BMO recommends Premium Brand Holdings (PBH.TO), DentalCorp Holdings (DNTL.TO).
Price: 50.09, Change: -0.05, Percent Change: -0.10
10:39AM ET on Friday Dec 09, 2022 by MT Newswires
10:39 AM EST, 12/09/2022 (MT Newswires) -- The changing macro backdrop (inflation, rising rates and the impact on consumer spending) is expected to be key to earnings in 2023E for the retail & consumer stocks, writes BMO Capital's Stephen MacLeod, especially considering the expectation for an H1/23E mild recession.
Into 2023E, while the earnings path may not be linear, BMO believes investors should be tactically looking for entry points into
discretionary stocks for companies with resilient business models that can weather near-term macro pressures and emerge in a stronger competitive position when growth rebounds.
On this list: Aritzia (ATZ.TO), Gildan Activewear (GIL.TO) and Sleep Country (ZZZ.TO).
For investors wanting more defensive staples positioning in the meantime, BMO recommends Premium Brand Holdings (PBH.TO), DentalCorp Holdings (DNTL.TO).
Price: 50.09, Change: -0.05, Percent Change: -0.10