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Pro Analysis

There's a $13 trillion gorilla lifting the economy

Gorilla
Wendell Clendennen | EyeEm | Getty Images

Investors should buy select e-commerce and services stocks as the state of the US consumer is improving, according to Macquarie Research.

"Macro data continues shows that the global economy's $13 trillion gorilla, the US consumer, is getting even stronger. Aggregate spending is rising by $500 billion per year and data for 2Q has been robust," Macquarie's David Doyle wrote in a note to clients Tuesday.

The analyst cited how the Atlanta Fed's GDPNow estimate points to real consumer spending growth of 4.5 percent for the current quarter, which would be the strongest growth in more than 10 years. Moreover, US income growth of around 4.5 percent in the past 18 to 24 months contributes to Doyle's positive view of the consumer.

"Perhaps most surprising to investors will be that all of the increase in aggregate spending over 2015-6 has come from services and e-commerce goods spending," the report said.

As a result, the analyst recommends stocks in those subsectors. Here are the firm's top five services and e-commerce stock ideas to take advantage of the trend.