Consumer Stocks Post Weekly Gains As Retail Sales Rebound, Inflation Picks Up: Here Are The Top 3 Winners

Consumer stocks posted modest gains last week amid data that painted a mixed picture of the U.S. economy: inflation is rising, yet consumers remain undeterred.

The Consumer Discretionary Select Sector SPDR Fund (XLY) rose 0.3%, registering its fourth straight week of gains. The Consumer Staples Select Sector SPDR Fund (XLP) rose 0.1%.

Official data showed that U.S. retail sales rose 0.6% in June, outpacing expectations and reversing the 0.9% decline in May, signaling a rebound in economic activity. On the other hand, inflation jumped 2.7% for 12 months through June, its highest pace in five months.

Here are the consumer sector stocks that gained the most last week:

PepsiCo (5.9% weekly gain)

PepsiCo topped Wall Street's forecasts for both revenue and profit in the second quarter, sending its stock up 7.5% on Thursday, its largest single-day gain in more than five years.

Even as analysts became slightly more bullish, with price target hikes from Morgan Stanley and Bank of America, PepsiCo shares trimmed some gains on Friday.

PepsiCo said its long-sluggish North American business is showing signs of improvement and outlined a strategy to drive growth. The bigger reassurance for investors: the company reaffirmed its full-year outlook.

Tapestry (5.1% weekly gain)

Tapestry features on the Stocktwits list of top weekly consumer sector gains for the second time in a row. Shares crossed the all-important $100 mark last week and set another record in the past week, without a significant catalyst.

Tapestry is high on investors' radars after it raised its full-year forecast in May, and analysts say its Coach brand is experiencing strong demand.

Part of the week's gains came after Tapestry's announcement that it had increased its stake to nearly 10% in Gen Phoenix, a company known for its sustainable leather materials and eco-friendly production practices.

Hershey Co (4% weekly gain)

Hershey shares rebounded last week after initially dropping 4.7% on July 9, following news that Wendy's CEO Kirk Tanner would take over as the chocolate and candy maker's new chief executive. The recent uptick suggests investors may have seen the pullback as a buying opportunity.

Shares were also boosted by strong retail sales data for the last month and Deutsche Bank raising its price target on HSY stock by $3 to $161.

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