According to UBS, investors should break out of stocks exposed to more affluent consumers when inflationary pressures mount. Equity strategists at UBS found that stocks geared toward higher-income consumers have declined 5% since late April, the note on Tuesday said. Buyers with more savings and more disposable income are able to spend on luxuries despite rising food and gas prices. “While initial consumer spending growth was driven by the theme of reopening, we expect another theme to be driven by higher income household spending relative to lower incomes,” the report said. “This should also support premium/luxury versus value brands as higher consumption moves up the quality scale,” the report added. The search for stocks that would profit as prices continued to rise returned dozens of names. UBS scrutinized luxury themed stocks. The firm’s strategists then reviewed stocks by beta sensitivity in the 40th percentile from the top and bottom, statistical significance of beta (t-stat > 2.0), and checked for market caps of more than $1 billion. Here are the 10 names that surfaced on UBS’s screen: (Source: UBS) Cosmetics company Coty is poised to benefit from a high-income consumer. Shares rose more than 5% on Tuesday after Coty confirmed its current-quarter and full-year outlook. Macy’s is getting a boost from shoppers who are buying new clothes and luxury goods. With the retailer beating profits and sales expectations in its most recent quarter, Nike has the pricing power to pass on the higher costs to consumers. The sportswear brand is facing challenges from the Covid lockdown in China, but analysts at Stifel still rebuffed the stock as a buy earlier this month. Other names that surfaced include Under Armour, Victoria’s Secret, Nordstrom, Norwegian Cruise Line Holdings, Ulta, Chipotle and Simon Property Group. UBS strategists also found names that have a higher risk for low-income consumers: Abercrombie & Fitch among low-income consumer risk stocks. Last month, the apparel retailer reported that inventory was up 45% in its most recent quarter compared to the same period a year ago. Abercrombie & Fitch cut its sales forecast for the year. Fast-Food Restaurant Yum! Brands have exposure to low-income consumers. Last month, UBS reappointed the owner of Pizza Hut and Taco Bell as a thank you for its scale and competitive position. Other stocks exposed to low-income consumers included Gap, Olly, Six Flags, Kohl’s, Carnival Corporation, Dollar General, Five Bottom and Wendy’s.