Consumers are stretched thin when it comes to spending their money amid high inflation, but some brands will have lasting staying power, according to one analyst. 

Speaking with BNN Bloomberg’s Amber Kanwar on Tuesday, Jaime Katz, senior equity analyst at Morningstar, said she looks for companies that are focused on evolving with their customers and making solid products that can stand the test of time.

“We’re looking for companies that have a competitive edge relative to the peer group and have a long term prognosis that allows for some operating margin expansion over time,”

She recommended Polaris Inc. (PII), Bath & Body Works, Inc. (BBWI) and Hasbro, Inc. (HAS) as her top three hot picks within consumer discretionary sector.

Katz, her family, her firm, and her investment banking clients do not own any shares of the companies mentioned above.

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