** Shares of Australia's JB Hi-Fi JBH.AX rise 0.4% while conglomerate Wesfarmers WES.AX gain 0.6%

** Morningstar says Australian retailing industry leaders, who are perceived well with highly regarded management teams are leading the recent rebound rally in discretionary retail

** Leading discretionary retailers JBH.AX and WES.AX look overvalued to the investment research firm, with stocks up 18.8% and ~6%, respectively, since October

** Investor concerns that cyclically soft liquor sales could indicate a more structural change in consumer preferences are weighing on sentiment towards Endeavour EDV.AX, says Morningstar

** The investment research firm believes meaningful margin expansion is hard to achieve for most retailers as an uptick in household savings remain an overhang

** In the September quarter, volumes were flat, with household goods outperforming—underpinning sales growth at JB Hi-Fi, Harvey Norman HVN.AX, and Kogan KGN.AX - Morningstar

** EDV stock gains 0.4%

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))