U.S consumer will continue to spend on services even if the economy slides into a mild recession in 2023, says Jenny Harrington of Gilman Hill Asset Management.
Harrington recommends owning Marriott stock
Enormous spending was a feature of the pandemic. Following more than two years of restrictions, she added, people are now looking forward to spending on experiences.
To that end, a stock she likes for the next year is Marriott International Inc (NASDAQ: MAR) that’s roughly flat for the year at writing. On CNBC’s “Worldwide Exchange”, Harrington said:
Even though it’s not at a cheap valuation, it’s got huge earnings growth ahead. So, that’s to me is one of those services stocks [that will do good in 2023].
Harrington’s view is in line with Wall Street that also recommends buying Marriott stock here. Earlier this year, Marriott CEO Tony Capuano expressed confidence that higher prices could sustain beyond the busy summer season (detailed here).
Harrington is also bullish on JetBlue Airways
Another one that Harrington likes to play continued spending on services is JetBlue Airways Corporation (NASDAQ: JBLU) that bought Spirit Airlines in 2022 to become the fifth major U.S. air carrier.
We also own JetBlue. We’ve already seen their earnings start to return very nicely. I think people will continue to spend on travel.
In its latest reported quarter, JetBlue swung to an adjusted profit of 21 cents a share from 58 cents of loss in the prior quarter.
Versus its year-to-date high, the stock is down more than 50% that makes it attractive in terms of valuation as well.
The post Jenny Harrington recommends these two services stocks for 2023 appeared first on Invezz.
