UBS names 3 consumer stocks as top picks amid sector underperformance

UBS highlighted Viking Holdings, TJX Cos. and Amazon.com as top consumer-sector picks, citing strong growth, solid returns and a track record of exceeding expectations.

"The best consumer stocks share strong growth, solid returns and an ability to exceed expectations," UBS analysts wrote in a research note dated June 3.

Consumer stocks have broadly underperformed the broader market this year as shifting spending patterns and elevated interest rates weighed on the group. The S&P 500 Consumer Discretionary sector has lagged the S&P 500, though the three UBS picks have shown relative resilience.

Viking Holdings, the luxury cruise operator, has benefited from sustained travel demand that has held up despite economic uncertainty. TJX Cos., the parent of T.J. Maxx and Marshalls, continues to draw value-conscious shoppers seeking discounts on branded goods. Amazon.com's e-commerce and cloud computing businesses provide a diversified revenue base that has consistently beaten consensus estimates.

The UBS picks represent a bet on companies with pricing power and resilient demand across income brackets. Investors will watch upcoming quarterly reports for confirmation that these trends are holding.

This article is for informational purposes only and does not constitute investment advice.