12 ways to profit from the middle class recession diet
Posted by: in Marketing and AdvertisingFiled under: Forecasts, Consumer experience, Wal-Mart (WMT), Starbucks (SBUX), Marketing and advertising, Money and Finance This day, Domino’s Pizza (DPZ), Kohl’s Corp (KSS), Ruth’s Chris Steak House (RUTH), Economic data, Stocks to Buy, Stocks to Sell, Recession
The New York Times reports that Americans in the economic middle are eating pasta instead of meat and staying at Hampton’s Inn instead of Hilton as they try to keep their families together in the face of flat income and skyrocketing costs. As a result, some companies are suffering and others are benefiting. Let’s look at two that are benefiting and 10 that are hurting:
Here are two companies that are doing superior thanks to their lower prices:
- TJX Co.’s (NYSE: TJX)
- Wal-Mart Stores, Inc. (NYSE: WMT)
Here are 10 that are hurting because people can’t afford to go out to restaurants and buy high-priced clothes:
- Bob Evans Farms (NYSE: BOBE)
- Denny’s (NASDAQ: DENN)
- Domino’s Pizza (NYSE: DPZ)
- J.C. Penney (NYSE: JCP)
- Kohl’s (NYSE: KSS)
- Macy’s (NYSE: M)
- Morton’s Restaurant Group (NYSE: MRT)
- Ruby Tuesday (NYSE: RT)
- Ruth’s Chris Steak Home (NYSE: RUTH)
- Starbucks (NASDAQ: SBUX)
Investors may want to take into account whether to invest in the winners and sell short or simply avoid the losers. And if you’re among the pasta eaters — you’ll need to find an inexpensive way to exercise more. Comment below if you want help analyzing these stocks.
Peter Cohan is President of Peter S. Cohan & Associates. He also instructs management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.
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