Jim Lowell, editor-in-chief of Fidelity Investor, recently talked to CNBC about some potential sector opportunities — even amid a somewhat listless market.
Specifically, Lowell sees opportunity in the U.S. consumer, pointing out a few recent successes in the space.
- TJX Companies Inc (NYSE:TJX), the major U.S. discount retailer of apparel and home fashions, recently beat on estimates and raised its guidance.
- Meanwhile, in the housing sector, Home Depot Inc (NYSE:HD) also beat on estimates and raised guidance.
That latter news, combined with strong building permits and housing starts, point to a rebound in the housing market, Lowell says.
Still, all of this comes down to consumer spending. While wage growth is low, the savings rate has steadily ticked up, likely as a result of savings from low oil prices. But, Lowell said, “consumers are an impatient breed,” and he expects that if oil prices decline again, they’ll use that increased spending power to actually spend.
Check out the video above for more.