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4 Reasons Why You Should Add Marcus (MCS) to Your Portfolio
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The Marcus Corporation (MCS - Free Report) is a leader in the lodging and entertainment industries with considerable company-owned real estate assets. It operates through two segments: Movie Theatres, and Hotels and Resorts.
In fact, Marcus’ theatre division, Marcus Theatres, is the fourth largest theatre circuit in the U.S. and presently owns or operates 895 screens at 69 locations in eight states. Meanwhile, the company’s lodging division, Marcus Hotels & Resorts, owns and/or manages 17 hotels, resorts and other properties in nine states.
Stock Price Movement: Marcus’ shares have rallied 66.4% over the past one year widely outperforming the Zacks categorized Leisure and Recreation Services industry’s gain of 26.3%. Strong fundamentals, continual outperformance of the theatre division and improvement in the Hotels & Resorts division should aid the stock in maintaining its solid performance in the quarters ahead.
Earnings & Revenue Growth: Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) for the company in question.
While Marcus has a historical earnings per share (EPS) growth rate of 26.9% compared with the industry average of 18.5%, investors should really focus on its projected growth. The company is looking to grow at a rate of 21.3% higher than the industry average of 15.4%.
Propelling the earnings forward is the company’s solid revenue growth story. Notably, the projected sales growth for the current year is 24.9%, which is higher than the broader industry’s estimate of 3.9%.
Earnings History and Estimate Revisions: Marcus has surpassed earnings estimates in each of the trailing four quarters, with an average beat of 15.38%.
Moreover, the Zacks Consensus Estimate for Marcus’ current year’s earnings has moved up 10%, reflecting two upward revisions versus none downward, over the last 60 days. Also, next year’s earnings estimates have inched up 5.9%, on the back of two upward revisions versus no downward revision. All these positive earnings estimate revisions testifies the unwavering confidence that analysts have in the company and also adds to the optimism in the stock.
VGM Score: Marcus has a VGM Score of 'A'. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of 'A' or 'B' when combined with a Zacks Rank #1 or 2 (Buy) make solid investment choices.
Key Picks
Some other top-ranked stocks in the broader Consumer Discretionary sector include Intrawest Resorts Holdings, Inc. (SNOW - Free Report) , Marriott International, Inc. (MAR - Free Report) and China Lodging Group, Limited (HTHT - Free Report) . All the three stocks sport the same Zacks Rank as Marcus.
The Zacks Consensus Estimate for Intrawest Resorts Holdings’ fiscal 2017 earnings climbed 20.5%, over the past 60 days. Moreover, the trailing four-quarter average positive surprise is 4.11%.
The Zacks Consensus Estimate for Marriott’s 2017 earnings climbed 3.3%, over the past 60 days. Further, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 5.21%.
The Zacks Consensus Estimate for China Lodging Group’s 2017 earnings moved up 5.4%, over the last 60 days. Further, for 2017, EPS is expected to improve 30.5%.
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4 Reasons Why You Should Add Marcus (MCS) to Your Portfolio
The Marcus Corporation (MCS - Free Report) is a leader in the lodging and entertainment industries with considerable company-owned real estate assets. It operates through two segments: Movie Theatres, and Hotels and Resorts.
In fact, Marcus’ theatre division, Marcus Theatres, is the fourth largest theatre circuit in the U.S. and presently owns or operates 895 screens at 69 locations in eight states. Meanwhile, the company’s lodging division, Marcus Hotels & Resorts, owns and/or manages 17 hotels, resorts and other properties in nine states.
We are positive on this Zacks Rank #1 (Strong Buy) company’s prospects and believe it to make a value addition to your portfolio. You can see the complete list of today’s Zacks #1 Rank stocks here.
What Makes Marcus a Solid Pick?
Stock Price Movement: Marcus’ shares have rallied 66.4% over the past one year widely outperforming the Zacks categorized Leisure and Recreation Services industry’s gain of 26.3%. Strong fundamentals, continual outperformance of the theatre division and improvement in the Hotels & Resorts division should aid the stock in maintaining its solid performance in the quarters ahead.
Earnings & Revenue Growth: Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) for the company in question.
While Marcus has a historical earnings per share (EPS) growth rate of 26.9% compared with the industry average of 18.5%, investors should really focus on its projected growth. The company is looking to grow at a rate of 21.3% higher than the industry average of 15.4%.
Propelling the earnings forward is the company’s solid revenue growth story. Notably, the projected sales growth for the current year is 24.9%, which is higher than the broader industry’s estimate of 3.9%.
Earnings History and Estimate Revisions: Marcus has surpassed earnings estimates in each of the trailing four quarters, with an average beat of 15.38%.
Moreover, the Zacks Consensus Estimate for Marcus’ current year’s earnings has moved up 10%, reflecting two upward revisions versus none downward, over the last 60 days. Also, next year’s earnings estimates have inched up 5.9%, on the back of two upward revisions versus no downward revision. All these positive earnings estimate revisions testifies the unwavering confidence that analysts have in the company and also adds to the optimism in the stock.
VGM Score: Marcus has a VGM Score of 'A'. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of 'A' or 'B' when combined with a Zacks Rank #1 or 2 (Buy) make solid investment choices.
Key Picks
Some other top-ranked stocks in the broader Consumer Discretionary sector include Intrawest Resorts Holdings, Inc. (SNOW - Free Report) , Marriott International, Inc. (MAR - Free Report) and China Lodging Group, Limited (HTHT - Free Report) . All the three stocks sport the same Zacks Rank as Marcus.
The Zacks Consensus Estimate for Intrawest Resorts Holdings’ fiscal 2017 earnings climbed 20.5%, over the past 60 days. Moreover, the trailing four-quarter average positive surprise is 4.11%.
The Zacks Consensus Estimate for Marriott’s 2017 earnings climbed 3.3%, over the past 60 days. Further, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 5.21%.
The Zacks Consensus Estimate for China Lodging Group’s 2017 earnings moved up 5.4%, over the last 60 days. Further, for 2017, EPS is expected to improve 30.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>