The U.S economy grew by 1% this quarter, up from the previous quarter's 0.4%. All the same, the economy is growing at a worse-than-expected rate.
According to Bloomberg, "confidence among U.S. consumers dropped in August to the lowest level since November 2008," citing the Thomson Reuters/University of Michigan index of consumer sentiment, which fell to 55.7 this month from 63.7 in July.
Contributing factors to despair and pessimism facing consumers include fears of inflation, loss of confidence in the government's ability to fix the economic slump, unemployment, concerns over the global economy, and market volatility following the downgrade.
But there's always a silver lining, and this time it's a small 0.4% increase in consumer spending. This exceeded analyst expectations of 0.1%. This figure is something to cheer over: Consumer spending represents 70% of the nations GDD, thus any increases spells good news for a staggering economy. Business spending is also up 9.9%, better than the estimated 6.3%.
"While sentiment has deteriorated, data such as industrial production, retail sales and employment suggest the economy could avoid an outright contraction," reports MSNBC.
While it's certain that consumer sentiment is still very low, even one of the lowest levels recorded since 2008, it's also certain that some level of spending will continue.
Below we list retail stocks that have been experiencing significant levels of institutional buying. Big money mangers thing these stocks can manage the downturn -- do you?
Use the list below as a staring-off point in your own analysis. Data sorted by institutional buying as a percentage of share float. (Click here to access free, interactive tools to analyze these ideas.)
1. Tesla Motors
2. Sanderson Farms
4. The Hain Celestial Group
5. General Motors
6. Douglas Dynamics
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman does not own any of the shares mentioned above.