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4 Leisure Stocks Set to Trump Earnings Estimates This Season
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The Zacks Leisure and Recreation Services industry participants’ are likely to reflect the impact of the coronavirus pandemic. In fact, the rising macroeconomic uncertainties and bare minimum revenue prospects compelled the industry players to withdraw their guidance.
The cruise industry has been driven to a standstill by the coronavirus-induced crisis. Major cruise operators like Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Carnival Corporation & Plc (CCL - Free Report) have lost more than half of the market cap so far this year. Cruise companies commenced 2020 on a strong note. However, demand started declining in mid-February. Due to the COVID-19 pandemic, companies had to cancel sailings.
Furthermore, the leisure services industry is weighed down by high cost burden. The industry players generally work through multiple business models. The industry participants are also suspending share repurchase programs and dividend payouts in an effort to improve liquidity. Moreover, supply chain disruptions due the pandemic are likely to continue hurting the industry in the near term.
However, the Zacks Leisure and Recreation Products industry is likely to have benefited from robust demand for recreational products and golf business in third-quarter 2020. The companies that design, market, retail, and distribute products for the outdoor and recreation market are witnessing robust demand. Moreover, golf manufactures and boating suppliers are gaining from the ongoing coronavirus pandemic.
How to Make the Right Pick?
Given the wide range of companies in this space, the task is by no means easy. While it is impossible to be sure of the outperformers, our proprietary methodology — a positive Earnings ESP along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Our Choices
Here are a few leisure companies that investors can take a look at.
Callaway Golf Company will report third-quarter 2020 results. It has an Earnings ESP of +12.56% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings is pegged at 22 cents per share, suggesting a decline of 22.2% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Callaway Golf Company Price, Consensus and EPS Surprise
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report third-quarter 2020 results on Nov 5. It has an Earnings ESP of +15.84% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings stands at 11 cents per share, suggesting a decline of 69.44% from the prior-year quarter.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Clarus Corporation (CLAR - Free Report) is scheduled to report third-quarter 2020 results on Nov 9. The company has an Earnings ESP of +23.53% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings is pegged 23 cents per share, suggesting growth of 21.1% from the prior-year quarter.
Clarus Corporation Price, Consensus and EPS Surprise
MasterCraft Boat Holdings, Inc. (MCFT - Free Report) is scheduled to report first-quarter fiscal 2021 results on Nov 9. The company has an Earnings ESP of +5.42% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for first-quarter earnings is pegged 33 cents per share, suggesting a decline of 37.7% from the prior-year quarter.
MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Image: Bigstock
4 Leisure Stocks Set to Trump Earnings Estimates This Season
The Zacks Leisure and Recreation Services industry participants’ are likely to reflect the impact of the coronavirus pandemic. In fact, the rising macroeconomic uncertainties and bare minimum revenue prospects compelled the industry players to withdraw their guidance.
The cruise industry has been driven to a standstill by the coronavirus-induced crisis. Major cruise operators like Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Carnival Corporation & Plc (CCL - Free Report) have lost more than half of the market cap so far this year. Cruise companies commenced 2020 on a strong note. However, demand started declining in mid-February. Due to the COVID-19 pandemic, companies had to cancel sailings.
Furthermore, the leisure services industry is weighed down by high cost burden. The industry players generally work through multiple business models. The industry participants are also suspending share repurchase programs and dividend payouts in an effort to improve liquidity. Moreover, supply chain disruptions due the pandemic are likely to continue hurting the industry in the near term.
However, the Zacks Leisure and Recreation Products industry is likely to have benefited from robust demand for recreational products and golf business in third-quarter 2020. The companies that design, market, retail, and distribute products for the outdoor and recreation market are witnessing robust demand. Moreover, golf manufactures and boating suppliers are gaining from the ongoing coronavirus pandemic.
How to Make the Right Pick?
Given the wide range of companies in this space, the task is by no means easy. While it is impossible to be sure of the outperformers, our proprietary methodology — a positive Earnings ESP along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Our Choices
Here are a few leisure companies that investors can take a look at.
Callaway Golf Company will report third-quarter 2020 results. It has an Earnings ESP of +12.56% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings is pegged at 22 cents per share, suggesting a decline of 22.2% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Callaway Golf Company Price, Consensus and EPS Surprise
Callaway Golf Company price-consensus-eps-surprise-chart | Callaway Golf Company Quote
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report third-quarter 2020 results on Nov 5. It has an Earnings ESP of +15.84% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings stands at 11 cents per share, suggesting a decline of 69.44% from the prior-year quarter.
Planet Fitness, Inc. Price, Consensus and EPS Surprise
Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. Quote
Clarus Corporation (CLAR - Free Report) is scheduled to report third-quarter 2020 results on Nov 9. The company has an Earnings ESP of +23.53% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings is pegged 23 cents per share, suggesting growth of 21.1% from the prior-year quarter.
Clarus Corporation Price, Consensus and EPS Surprise
Clarus Corporation price-consensus-eps-surprise-chart | Clarus Corporation Quote
MasterCraft Boat Holdings, Inc. (MCFT - Free Report) is scheduled to report first-quarter fiscal 2021 results on Nov 9. The company has an Earnings ESP of +5.42% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for first-quarter earnings is pegged 33 cents per share, suggesting a decline of 37.7% from the prior-year quarter.
MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise
MASTERCRAFT BOAT HOLDINGS, INC. price-consensus-eps-surprise-chart | MASTERCRAFT BOAT HOLDINGS, INC. Quote
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>