5 Consumer Stocks to Sell Now

Consumer Stock #3
Landry’s Restaurants (LNY)

One of the first movers seeing an uptick in spending due to increased consumer confidence, is the restaurant space. Only a few
diehards really like to stay home and cook. Dining out is a great way to escape. Even better is that going to a restaurant for
a meal that is affordable. The fact that dining suffered during this recession is indicative of how bad things were.

Given that confidence is rising, it is no surprise then that Landry’s Restaurants (LNY)
has almost tripled in value since hitting the bottom in early March. While it is true that the stock sell-off went too far, it
is also true that this rally has gone a bit too far. The stock trades for a high multiple of earnings, and one can debate if confidence
truly translates to more spending. The more likely path in the short term is down.

I like the story in the long term, but I would prefer buying LNY at a cheaper price.

NEXT: Consumer Stock #4: AnnTaylor (ANN)