Home Business Consumers spending stimulus checks will boost airlines, cannabis and these other stocks, Cowen says

Consumers spending stimulus checks will boost airlines, cannabis and these other stocks, Cowen says

by MD Samsuzzaman Siyam

A customer holds an American Eagle Outfitters Inc. shopping bag while waiting in line to make a transaction at a store in San Francisco, California, U.S., on Wednesday, March 6, 2013.

Bloomberg

An influx of cash to many low-to-moderate-income households as part of the $1.9 trillion Covid-19 relief package is expected to lift several consumer stocks over the next few months, according to Cowen.

The brokerage believes that stimulus checks and a dramatic expansion of the child tax credit will flow through the U.S. economy and fuel business at a wide range of industries from airlines and hospitality to apparel retail and cannabis.

“We see evidence of increased consumer spending, namely driven by incremental $1,400 stimulus checks,” a team of Cowen analysts wrote Friday. “Across consumer industries, these indicators of pent-up demand should translate into near-term spending (particularly among households most impacted by COVID-19) and providing another leg of growth.”

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