As the United States gross domestic product (GDP) figures for the quarter recently suggested that the American consumer was mostly responsible for carrying economic growth, investors might wonder whether it is still worth it to look into buying some retail stocks in the cyclical space, or whether the wave is toward its last inning and might roll over soon.
Well, the answer can only be found in the fundamentals and price action, where companies report their quarterly results, and markets react by either punishing or rewarding that company’s stock price in the following days. Today, plenty in the consumer discretionary space have shown both of these requirements to be true, with the latest test subject being shares of Bath & Body Works Inc. (NYSE: BBWI).
