Stocks such as Disney and Uber will benefit from an explosion in consumer spending as the world returns to normal, UBS said Thursday. "The capacity for US consumers to spend is massive and growing," UBS chief U.S. equity strategist Keith Parker said in a note to clients. Consumption is set to "catch up" to consumer demand as the Covid-19 vaccines roll out after lagging during the pandemic, the firm said. Stimulus checks are expected to come as a part of the massive fiscal aid being weighed by Congress. UBS estimates there's $1.6 trillion in pent-up savings from the crisis, while consumers seem more intent on spending. UBS screened for the stocks that are set to benefit the most from a sharp acceleration in consumer spending. The listed stocks have buy ratings from the firm. Theme-park operator Disney is one of UBS' top picks as consumer spending recovers. CEO Bob Chapek told analysts earlier this month that the outlook for parks' revenue and reopening is "really going to be determined by the rate of vaccination of the public." He added that any reopening or increase in visitor capacity will likely include masking and social-distancing measures through the end of the year. Disney was one of the most beaten-down names of the Covid crisis, which forced parks to close. UBS also said hotel chain Hilton Worldwide should get a boost from the return to normal travel, along with Southwest and Alaska Air Group . Airlines are losing billions during the pandemic, leading them cut costs and bleed cash. Executives have also warned that carriers will keep shedding cash until revenues bounce back. Ride-hailing companies Uber and Lyft should also benefit from people getting out of their homes in a post-Covid era. Uber posted mixed quarterly results earlier this month as its ride-hailing business slowly recovers and its food-delivery service booms. Olive Garden-parent company Darden Restaurants is another top pick of UBS as Americans resume indoor dining. Cosmetics company Ulta Beauty, beer and wine producer Constellation Brands and Equity Residential also earned spots on UBS' list. — with reporting from CNBC's Michael Bloom.
Shanghai Disneyland reopened in early May.
Stocks such as Disney and Uber will benefit from an explosion in consumer spending as the world returns to normal, UBS said Thursday.
"The capacity for US consumers to spend is massive and growing," UBS chief U.S. equity strategist Keith Parker said in a note to clients.