By Thomas Graves Standard & Poor's is raising its opinion on the consumer discretionary sector to "market weight" from "underweight." Although holiday season sales are likely to be weak for many companies in the sector, S&P sees investors placing increased emphasis on the expected benefits of monetary and fiscal stimulus in 2002.
How to play the trend? S&P's recommended investment approaches within the sector include making selections among expected beneficiaries of lower interest rates and discount-oriented shopping.
For example, we recommend Home Depot( HD), ranked 5 STARS (buy) and Clayton Homes (CMH), also ranked 5 STARS.
S&P has a 4 STARS (accumulate) opinion on shares of Wal-Mart (WMT) 4 STARS (accumulate) and Family Dollar (FDO). Graves is an equity analyst for Standard & Poor's