In a note Wednesday, Wolfe Research said inflation is showing no signs of slowing, and that could mean big trouble for some consumer stocks. “We believe that high inflation hits low-income consumers the hardest,” wrote analyst Chris Senyk. “Our understanding is that both high gasoline and food costs pull significantly on low-income consumers.” The Consumer Price Index, a widely followed measure of inflation, rose 9.1% on a year-on-year basis in June. That’s well above the 8.8% growth expected by the Dow Jones and its fastest pace of gains since 1981. “At the high end, we continue to see growing headwinds from rising interest rates, falling equity markets and declining home prices,” Senyak wrote. “Additionally, we estimate that US consumers are expected to face a $1 trillion+ fiscal headwind in 2022 from the end of the child tax credit expansion in January.” Because of this, Wolfe compiled a list of stocks with heavy exposure to the bottom-line consumer. While many stocks have underperformed the S&P 500 years to date and could potentially be viewed as trading at a discount, Senyak warns investors that there may be more pain to come. Heavy hitters on the list include discount retailers such as Walmart, Dollar General and Dollar Tree — companies that cater to low-end consumers and may take a hit if those buyers turn back on spending. However, not all analysts agree with Senyak’s hypothesis. Atlantic Equities has an overweight rating on Walmart and a price target of $167 per share. The stock currently trades around $126 per share — up more than 13% year to date. “We believe the company’s commitment to keeping prices low for consumers, especially within grocery, will lead to higher traffic and higher share of the wallet,” wrote analyst Daniela Nedialkova. “Aggregate consumer demand is still showing resilience, but in anticipation of an inflation-induced slowdown, price will become increasingly important, and Walmart is best positioned to provide value to consumers while well protecting its margins. ” But others have noted that some companies on the list could suffer even more if lower-spending consumers hold back. In May, UBS advised investors against bargain hunting at Ross stores — also on the list — as macroeconomic headings intensify. “Our view is ROST-directed as inflation continues to impact low-income consumer demand more negatively than expected,” wrote analyst Jay Soul. “We think this trend turns worse and possibly leads to more guide downs.” The analyst has a neutral rating on the stock.