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The Consumer Staples and Discretionary sectors currently boast a few of the top-rated Zacks Industries with many of these stocks looking poised to post strong quarterly earnings.
Let’s take a look at two stocks out of these respective sectors that investors may want to consider buying before their fourth-quarter earnings reports.
Starting with the Consumer Discretionary sector, International Gaming Technologies stock looks appealing before its Q4 report on Tuesday, February 28.
With the Gaming Industry currently in the top 27% of over 250 Zacks Industries earnings estimate revisions have slightly gone up for IGT stock throughout the quarter for its current fiscal 2022 and FY23.
IGT currently sports a Zacks Rank #1 (Strong Buy) and should benefit from a booming business environment as a designer, developer, manufacturer, and marketer of casino-style gaming equipment, systems technology, and game content.
Image Source: Zacks Investment Research
Q4 Preview & Outlook
IGT’s Q4 earnings are projected at $0.33 per share, up a stellar 266% from Q4 2021 EPS of $0.09 a share. Even better, the Zacks Expected Surprise Prediction (ESP) indicates IGT could significantly beat bottom-line expectations with the Most Accurate Estimate having Q4 EPS at $0.40. On the top line, fourth-quarter sales are expected to be $1.04 billion, down roughly -1% from the prior year quarter.
Image Source: Zacks Investment Research
Rounding out fiscal year 2022, IGT’s earnings are now forecasted to climb 609% to $2.20 a share compared to EPS of $0.31 in 2021. Fiscal 2023 earnings are projected to drop -20% to $1.74 per share after a stellar year. Sales are expected to be up 2% for FY22 and slightly dip -1% in FY23 to $4.15 billion.
Takeaway
With shares of IGT up 15% year to date, the impressive rally could continue if the company can reach quarterly expectorations and offer positive guidance. Further supporting more upside is IGT’s valuation at $26 a share and 14.9X forward earnings which is nicely below the industry average of 20.3X and the S&P 500’s 18.2X.
Out of the Consumer Staples sector, Monster Beverage stock is intriguing before its fourth-quarter report on February 28. Monster stock is on the cusp of reaching higher highs with its Beverage-Soft Drinks Industry currently in the top 14% of all Zacks industries.
The marketer and distributor of energy drinks and alternative beverages is sporting a Zacks Rank #2 (Buy) going into its quarterly release with earnings estimates slightly higher for fiscal 2023 as the company wraps up FY22.
Image Source: Zacks Investment Research
Q4 Preview & Outlook
The Zacks Consensus for Monsters Q4 earnings is $0.61 per share, up 1% year over year. The Zacks Expected Surprise Prediction indicates Monster should reach its quarterly earnings expectations with the Most Accurate Estimate also at $0.61 a share. Sales for the quarter are expected to be up 11% YoY at $1.59 billion.
Image Source: Zacks Investment Research
Overall, Monster earnings are now forecasted to dip -11% to $2.28 a share for FY22 compared to EPS of $2.57 in 2021. However, Fiscal 2023 earnings are expected to rebound and leap 32% to $3.01 per share. Sales are now projected to jump 15% for FY22 and rise another 11% in FY23 to $7.09 billion.
Image Source: Zacks Investment Research
Takeaway
The top and bottom line growth of Monster Beverage is very attractive, especially when considering MNST’s strong performance over the last decade up +508% to crush the benchmark’s +161% and the Beverage-Soft Drinks Markets’ +48%.
Plus, trading at $102 per share and 34X forward earnings, Monster stock trades nicely below its decade-long high of 51X and on par with the median of 34X.
Bottom Line
Investors will certainly want to keep an eye on International Gaming Technologies and Monster Beverage stock going into their Q4 earnings reports. With both companies being beneficiaries of strong business industries there could certainly be plenty of upside for these consumer-centric stocks.
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2 Consumer-Centric Stocks to Buy Before Earnings
The Consumer Staples and Discretionary sectors currently boast a few of the top-rated Zacks Industries with many of these stocks looking poised to post strong quarterly earnings.
Let’s take a look at two stocks out of these respective sectors that investors may want to consider buying before their fourth-quarter earnings reports.
International Gaming Technologies (IGT - Free Report) )
Starting with the Consumer Discretionary sector, International Gaming Technologies stock looks appealing before its Q4 report on Tuesday, February 28.
With the Gaming Industry currently in the top 27% of over 250 Zacks Industries earnings estimate revisions have slightly gone up for IGT stock throughout the quarter for its current fiscal 2022 and FY23.
IGT currently sports a Zacks Rank #1 (Strong Buy) and should benefit from a booming business environment as a designer, developer, manufacturer, and marketer of casino-style gaming equipment, systems technology, and game content.
Image Source: Zacks Investment Research
Q4 Preview & Outlook
IGT’s Q4 earnings are projected at $0.33 per share, up a stellar 266% from Q4 2021 EPS of $0.09 a share. Even better, the Zacks Expected Surprise Prediction (ESP) indicates IGT could significantly beat bottom-line expectations with the Most Accurate Estimate having Q4 EPS at $0.40. On the top line, fourth-quarter sales are expected to be $1.04 billion, down roughly -1% from the prior year quarter.
Image Source: Zacks Investment Research
Rounding out fiscal year 2022, IGT’s earnings are now forecasted to climb 609% to $2.20 a share compared to EPS of $0.31 in 2021. Fiscal 2023 earnings are projected to drop -20% to $1.74 per share after a stellar year. Sales are expected to be up 2% for FY22 and slightly dip -1% in FY23 to $4.15 billion.
Takeaway
With shares of IGT up 15% year to date, the impressive rally could continue if the company can reach quarterly expectorations and offer positive guidance. Further supporting more upside is IGT’s valuation at $26 a share and 14.9X forward earnings which is nicely below the industry average of 20.3X and the S&P 500’s 18.2X.
Monster Beverage (MNST - Free Report) )
Out of the Consumer Staples sector, Monster Beverage stock is intriguing before its fourth-quarter report on February 28. Monster stock is on the cusp of reaching higher highs with its Beverage-Soft Drinks Industry currently in the top 14% of all Zacks industries.
The marketer and distributor of energy drinks and alternative beverages is sporting a Zacks Rank #2 (Buy) going into its quarterly release with earnings estimates slightly higher for fiscal 2023 as the company wraps up FY22.
Image Source: Zacks Investment Research
Q4 Preview & Outlook
The Zacks Consensus for Monsters Q4 earnings is $0.61 per share, up 1% year over year. The Zacks Expected Surprise Prediction indicates Monster should reach its quarterly earnings expectations with the Most Accurate Estimate also at $0.61 a share. Sales for the quarter are expected to be up 11% YoY at $1.59 billion.
Image Source: Zacks Investment Research
Overall, Monster earnings are now forecasted to dip -11% to $2.28 a share for FY22 compared to EPS of $2.57 in 2021. However, Fiscal 2023 earnings are expected to rebound and leap 32% to $3.01 per share. Sales are now projected to jump 15% for FY22 and rise another 11% in FY23 to $7.09 billion.
Image Source: Zacks Investment Research
Takeaway
The top and bottom line growth of Monster Beverage is very attractive, especially when considering MNST’s strong performance over the last decade up +508% to crush the benchmark’s +161% and the Beverage-Soft Drinks Markets’ +48%.
Plus, trading at $102 per share and 34X forward earnings, Monster stock trades nicely below its decade-long high of 51X and on par with the median of 34X.
Bottom Line
Investors will certainly want to keep an eye on International Gaming Technologies and Monster Beverage stock going into their Q4 earnings reports. With both companies being beneficiaries of strong business industries there could certainly be plenty of upside for these consumer-centric stocks.