Group 1: Macy's - Macy's operates as an omnichannel retail organization with three brands: Macy's, Bloomingdale's, and bluemercury [1] - The company has a Zacks Rank of 1 (Strong Buy) and a Zacks Consensus Estimate for current year earnings has increased by 5.1% over the last 60 days [1] - Macy's has a price-to-earnings ratio (P/E) of 9.28, significantly lower than the industry average of 19.10, and possesses a Value Score of A [2] Group 2: First Financial Bank - First Financial Bank is a financial holding company engaged in commercial banking and other financial activities [2] - The company also carries a Zacks Rank of 1 and has seen a 6.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - First Financial Bank has a P/E ratio of 9.17 compared to the industry average of 11, and it holds a Value Score of B [3] Group 3: Carriage Services - Carriage Services is a leading provider of death care services and products in the United States [3] - The company has a Zacks Rank of 1 and has experienced a 3.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - Carriage Services has a P/E ratio of 13.21, which is lower than the industry average of 19.90, and it has a Value Score of B [4]

Economic Overview - U.S. consumer confidence dropped to 97.4 in August from 98.7 in July, indicating a decline of 1.3 points, with short-term expectations for income, business conditions, and employment also falling to 74.8 [4][5] - Concerns about the economy have been exacerbated by tariffs imposed by President Trump, which have raised inflation fears and impacted consumer confidence [5][6] - A weak labor market, characterized by slow job additions, has further fueled recession fears, despite low layoffs and unemployment rates [7] Investment Recommendations - Given the economic uncertainty, it is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), Northwest Natural Holding Company (NWN), Ingredion Incorporated (INGR), and Carriage Services, Inc. (CSV) [2][10] - These stocks are characterized by a beta greater than 0 but less than 1, indicating lower volatility, and they also offer high dividend yields [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.2% for the current year, with a beta of 0.75 and a dividend yield of 2.09% [8][9] - **Fortis, Inc. (FTS)**: Operates in the electric and gas utility sector, primarily in Canada and the Caribbean. Expected earnings growth rate is 4.6% for the current year, with a beta of 0.48 and a dividend yield of 3.57% [10][11] - **Northwest Natural Holding Company (NWN)**: Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a beta of 0.59 and a dividend yield of 4.72% [12][13] - **Ingredion Incorporated (INGR)**: Provides ingredient solutions specializing in nature-based sweeteners and starches, serving various sectors. Expected earnings growth rate is 6.7% for the current year, with a beta of 0.77 and a dividend yield of 2.47% [14] - **Carriage Services, Inc. (CSV)**: A leading provider of death care services in the U.S., offering a range of funeral and burial services. Expected earnings growth rate is 23.4% for the current year, with a beta of 0.86 and a dividend yield of 1.03% [15][16]

Economic Overview - Concerns about a slowing economy have intensified, with the Federal Reserve unlikely to implement rate cuts soon due to persistent inflation [1][8] - Consumer confidence has dropped significantly, with the Conference Board's consumer survey index falling to 98.3 in February, below the expected 102.3 [7] Inflation Data - The consumer price index (CPI) rose by 0.5% in January, following a 0.4% increase in December, marking the largest jump since August 2023 [5] - Year-over-year, CPI increased by 3% in January, up from 2.9% in December, the highest annual gain since April 2024 [6] Consumer Staples Investment - Investing in consumer staples stocks is recommended as they are considered defensive during economic uncertainty [2] - Suggested stocks include Carriage Services, Inc. (CSV), Lancaster Colony Corporation (LANC), Tyson Foods (TSN), and Molson Coors Beverage Company (TAP), all carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2] Company Profiles - **Carriage Services, Inc. (CSV)**: Expected earnings growth rate of 7.2% for the current year, Zacks Rank 2, beta of 0.91, and a dividend yield of 1.12% [12][13] - **Lancaster Colony Corporation (LANC)**: Expected earnings growth rate of 6.1% for the current year, Zacks Rank 2, beta of 0.31, and a dividend yield of 1.99% [14][15] - **Tyson Foods (TSN)**: Expected earnings growth rate of 22.6% for the current year, Zacks Rank 2, beta of 0.72, and a dividend yield of 3.26% [16][17] - **Molson Coors Beverage Company (TAP)**: Expected earnings growth rate of 6.5% for the current year, Zacks Rank 1, beta of 0.81, and a dividend yield of 3.07% [18][19] Investment Strategy - The recommended investment strategy focuses on low-beta stocks with high dividend yields and favorable Zacks Ranks [3]