Time to Pick And Choose Retail Stocks
Dan Genter, president and chief investment officer at RNC Capital Management, told CNBC’s “Squawk on the Street” that investors should consider shares of retailers that sell home electronics and cater to younger consumers.
“There’s a lot of weakness in this market, and there’s a tremendous amount of paranoia that’s been building in the last several months that the consumer is going to fall off a cliff,” Genter said. “Every time we have a spike in gasoline prices, we see some downward pressure on consumers.”
He said last winter’s bad weather depressed sales because it kept shoppers at home. But sales of consumer electronics at Wal-Mart remain strong.
Sales of flat panel TVs spiked during Christmas, and consumers will continue to upgrade their home entertainment systems. He suggested investors might want to consider stores pegged to young buyers, such as Kohl's and Best Buy.
“It’s a good time to buy on some weakness,” Genter said.