The K-shaped economy has winning stocks on both ends of the K. The upper arm of the K includes the high-end, luxury consumer companies that appeal to the wealthy. This segment of the consumer sector has benefited as the stock market has risen and home values have increased over the past five years. The lower leg of the K also has produced winners. The mass consumers, supported by a low unemployment rate, continue to prove their resilience despite the challenges of inflation and affordability. Even so, all consumers are watching wallets closely and choosing wisely how to direct their spending. For this week's list, we look at BUY-rated stocks that we see as winners of the K-shaped economy. The price performance noted is year to date.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

AI is helping lift profits at consumer companies on multiple levels. It allows companies to better understand their customers, which can improve target marketing and customization. Companies can hone menus, goods, and services to achieve broader appeal and to reach new audiences. Consumer companies are also harnessing AI technology to help with processes, inventory control, and supply-chain management, and in many other ways. By way of examples, restaurants are using smart robots to take orders, and prep and serve food. They also have front and back offices, and AI is helping make both more efficient and cost effective. As well, consumer companies utilize a lot of data, and AI helps elevate the use of that data. We recently concluded our five-part webinar series on AI, looking at how different industries are using AI. Our final event spotlighted consumer companies. For this week's list, we offer details on the BUY-rated stocks we highlighted during the webinar.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.