Increasing trade tension may be weighing on some investors' minds, but with the stock market rallying again and wages increasing, consumers are confident about the economy and their ability to spend, which should bode well for the remainder of this year.

That’s the call out of Goldman Sachs, the Wall Street firm that said that based on a survey of 2,000 consumers, it found economic optimism is hitting levels not seen since the start of polling back in 2005. What’s more, GS said pessimism about the outlook for the economy is at its lowest level while confidence is the strongest among those that are making the most money, reported, noting that middle-income earners’ optimism is at an eight-year high as well. (See also: 'Buffett Indicator' Spells Bad News for Stock Investors.)

Consumer Net Worth Growing

"The impact of strong demand drivers and strong consumer sentiment is evident in consumer spending,” wrote Goldman Sachs analyst Matthew Fassler in a research report covered by “Growth in consumer net worth, meanwhile, has been resurgent, powered by a mix of real estate appreciation and strong financial markets, and growing at annual rates of 6%-9% in each of the past seven quarters."

The analyst noted that Goldman remains confident in the consumer recovery given spending remains “solid.” Fassler did say there was some moderating of momentum from May through July and soft patches for the housing market, but the Wall Street firm is still “constructive” on the outlook for discretionary spending. (See also: S&P 500 Could Gain More 12% By Dec. 31: Canaccord.)

Consumer Stocks to Rally Double Digits

As a result of Goldman Sachs’s consumer spending call, the firm highlighted seven consumer stocks on its Conviction Buy list that have the potential to post even more upside. Those include Wyndham Hotels & Resorts Inc. (WH), which according to, Goldman Sachs said there is the potential for 44% upside, Aramark (ARMK), which the Wall Street firm said could increase 38%, and Las Vegas Sands Corp. (LVS), which has the potential for 31% upside.

Others on the list include Mondelez International Inc. (MDLZ), with 23% upside potential; Performance Food Group (PFGC) with the potential to rally 19%; Tapestry Inc. (TPR), which Goldman said could climb 14%; and McDonald’s Corp. (MCD), which could gain an additional 12%, according to GS.

Goldman Sachs isn't only bullish on consumer companies. Last week, analyst Toshiya Hari said he expects graphics chipmaker NVIDIA Corp. (NVDA) to rally more than 26% over the next 12 months thanks in part to an expanding data center business and solid prospects for its new Volta gaming chip. "Nvidia, in our view, is one of the few companies in our semiconductor coverage with exposure to multiple secularly growing end-markets (i.e. PC Gaming, Datacenter, ADAS/AV), a deep and sustainable competitive moat, and as a result, a margin/return profile that significantly exceeds its peers," wrote Hari in the note.