Consumer stocks shine during earnings season after ‘long winter’ on the ASX
In an earnings season defined by wild swings in blue-chip stocks and macro uncertainty, one sector quietly delivered the goods.
Through the loud noise of wild swings, executive mischief and a historic rally served up by this year’s earnings season, one corner of the market was quietly delivering the goods.
In the month since the first financial report of the earnings was filed, the consumer discretionary index on the ASX has surged 10.2%. This compares to 6% by the next best performing sector and 3.2% by the benchmark ASX 200.
“We are starting to see signs in certain parts of the consumer-facing environment that sales are picking up, that consumers are, generally speaking, a little bit healthier,” Morningstar equity market strategist Lochlan Halloway told Capital Brief.
“Tax cuts are starting to flow. Energy relief, to an extent, is helping. There’s modest signs of a pick up.”
