Despite strong July retail sales indicating consumer resilience, many companies have pointed to choosier customers trading down when they can. CFRA analyst Zachary Warring joins Morning Brief to weigh in on the mixed picture of the consumer and discuss the retailers performing best in this environment.

"We think the consumer's just being pickier. It's a stable consumer, but we wouldn't say they're strong by any means," Warring tells Yahoo Finance.

As consumers increasingly prioritize value, Warring notes that off-price retailers are among the companies best positioned to benefit. He points to TJ Maxx (TJX) and Ross Stores (ROST) as examples, explaining that they continue to see share price appreciation as well as earnings and store growth.

However, he notes that there are opportunities outside of value retailers, highlighting Abercrombie & Fitch (ANF) as an example as its most recent earnings report demonstrated its ability to grow revenue and expand margins.

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This post was written by Melanie Riehl