As inflation remains relatively high, consumer spending has pulled back, with more shoppers prioritizing value for their everyday goods. HSBC US Consumer Staples Senior Analyst Daniela Bretthauer joins Catalysts to explain why one retailer stands out as a top choice for consumers.

Bretthauer has a Buy rating on Walmart (WMT), calling it a "top pick" in the retail sector. "I think the future of grocery shopping is becoming increasingly omnichannel. And Walmart is America's largest grocer. They are very well positioned to serve the online," she explains.

She also expects Walmart to be "a defensive name" in the economy, especially if interest rate cuts are further delayed. "The everyday low-price strategy works extremely well, and so I think that they can still do quite well and have a nice growth in earnings this year," Bretthauer adds.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl