Consumer staples (XLP) have been on a bit of a run, outperforming the S&P 500 (^GSPC) since the beginning of August.

CFRA Research senior equity research analyst Arun Sundaram notes that more defensive sectors tend to do well in September, so there is some seasonality at play. Sundaram, however, still has the sector as an Underweight, arguing that cyclical sectors are "best poised for long-term growth" given the Federal Reserve rate cuts on the horizon.

With some pockets of consumers slowing their spending, Sundaram thinks there will be winners and losers in the space, telling Yahoo Finance he likes big box retailers such as Walmart (WMT), Costco (COST), Target (TGT), and BJ's (BJ).

Watch the video above to hear what it is about those stocks Sundaram likes.

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This post was written by Stephanie Mikulich.