U.S. consumers are still strapped, but some consumer stocks are on the rise, said Ron Sloan, senior portfolio manager at AIM Charter Fund. He shared his best consumer-related picks with investors.
“There are stocks that are consumer-related that you can make money in,” Sloan told CNBC.
“You have to find a niche somewhere, [where] the consumer doesn’t feel that it’s a discretionary item.”
He named three stocks that will stand out above the rest because they are “very financially conservative and generate a lot of cash.”
Comcast—“It’s not just about basic cable—it’s about wireless, landlines, broadband connections—that’s one of the bullish things about the cable story,” Sloan said.
H&R Block—“Tax changes—whether they are little, simplified, complex—the tax preparer business moves up,” he said. “I think there’s going to be more tax changes next year and that’s going to be very positive for the company.”
Hasbro—“The kicker on Hasbro is the GI Joe movie, as an example. They get a residual from that and there’s going to be more movies to follow,” he said. “In the meantime, it’s got the kind of basic SKUs that people, when they do buy toys, are going to buy.”
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Sloan’s firm owns shares of Comcast, H&R Block and Hasbro.