Watchlist: DKS, EL, TGT
Hightower Advisors’ and CNBC contributor, Stephanie Link, talked about a maybe-forgotten-about theme on Monday’s PreMarket Prep: discretionary spending.
She noted the group has been a laggard.
“Estee Lauder (EL), Target (TGT), DICK’S Sporting Goods (DKS)… I can find you a ton of names in [consumer discretionary] if we can get oil to stabilize,” Link said.
Her favorite in the group seemed to be DICK’S, a name she said had an “interesting story.”
Link noted the enormous level of spending the company had been doing on two fronts: for the World Cup and “fixing Foot Locker,” as she put it. “They are in the process of doing that [fixing].”
Foot Locker has been able to find a way to improve comps quicker than expected, according to Link. DICK’S itself, is “humming,” running at consistent same-store sales growth in the 4-6% range. “They are in the driver seat in that industry,” Link said of DICK’S.
“The Foot Locker fix is a big deal. It cost them a lot of money.” Link likened the spend subsiding in the second half of this year as well as benefits from the merger integration to a coiled spring.
“And the stock is cheap!”
Read More: Stephanie Link Says The AI Trade Is Moving Downstream
