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The Zacks Analyst Blog Highlights Marriott Vacations Worldwide, Marriott International, BJ's Wholesale Club Holdings, JAKKS Pacific and Enthusiast Gaming Holdings
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For Immediate Release
Chicago, IL – September 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marriott Vacations Worldwide Corp. (VAC - Free Report) , Marriott International, Inc. (MAR - Free Report) , BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , JAKKS Pacific, Inc. (JAKK - Free Report) and Enthusiast Gaming Holdings Inc. .
Here are highlights from Wednesday’s Analyst Blog:
5 Big Winners From a Sharp Rise in Consumer Confidence
As the pace of inflation slowed down, consumers grew more optimistic about the U.S. economy. Anyhow, the labor market is still strong.
All these indicate that consumers' outlays are poised to improve, which bodes well for consumer discretionary stocks like Marriott Vacations Worldwide Corp., Marriott International, Inc., BJ's Wholesale Club Holdings, Inc., JAKKS Pacific, Inc. and Enthusiast Gaming Holdings Inc..
US Consumer Confidence Jumps
Consumer confidence in the United States has taken a beating for the most part of the year amid high inflation that has contributed to a slowdown in economic growth and prompted the Fed to implement an aggressive monetary policy.
However, with inflation showing signs of easing in July amid lower gasoline prices, consumer confidence improved considerably in August, indicating that Americans are feeling more confident about the economy. Notably, the average gas prices across the United States dropped below $4 a gallon in August for the first time since March.
Meanwhile, the Conference Board's consumer confidence index increased to 103.2 last month from July's downwardly revised reading of 95.3, its first increase in four months, and easily topped analysts' expectations.
Additionally, consumers' assessment of present business conditions as well as short-term economic outlook improved markedly in August. After all, the present situation index jumped to 145.4 in August from July's reading of 139.7. Similarly, the expectations index advanced to 75.1 last month from 65.6 in July.
Consumer Spending to Improve
Looking ahead, improved consumer confidence may certainly help boost spending. And with inflation showing signs of a slow but steady drop, households are undoubtedly expected to increase spending on discretionary products or services.
Lest we forget, the labor market continues to shine despite fears of a recession. Last month, employers added 315,000 new jobs, which followed gains in the months of June and July. Thus, with more jobs in hand and consumers feeling confident about their financial situation, they are expected to spend more on nonobligatory items.
Stocks Worth a Buy
We have, thus, highlighted five consumer discretionary stocks that are most likely to gain from solid consumer confidence.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today's Zacks #1 Rank stocks here.
Marriot Vacations Worldwide is a leading global vacation company, offering vacation ownership, exchange, rental, resort and property management services. VAC currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. VAC's expected earnings growth rate for the current year is 131.4%.
Marriott International is a leading worldwide hospitality company. MAR currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 8.4% over the past 60 days. MAR's expected earnings growth rate for the current year is 102.8%.
BJ's Wholesale Club has emerged as one of the preferred destinations for shoppers when it comes to essentials and other items. BJ currently has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 9.1% over the past 60 days. BJ's expected earnings growth rate for the current year is 10.8%.
JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. JAKK currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 73.9% over the past 60 days. JAKK's expected earnings growth rate for the current year is 88%.
Enthusiast Gaming provides a gaming media platform principally in North America. EGLX currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 7.4% over the past 60 days. EGLX's expected earnings growth rate for the current year is 26.5%.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Marriott Vacations Worldwide, Marriott International, BJ's Wholesale Club Holdings, JAKKS Pacific and Enthusiast Gaming Holdings
For Immediate Release
Chicago, IL – September 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marriott Vacations Worldwide Corp. (VAC - Free Report) , Marriott International, Inc. (MAR - Free Report) , BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , JAKKS Pacific, Inc. (JAKK - Free Report) and Enthusiast Gaming Holdings Inc. .
Here are highlights from Wednesday’s Analyst Blog:
5 Big Winners From a Sharp Rise in Consumer Confidence
As the pace of inflation slowed down, consumers grew more optimistic about the U.S. economy. Anyhow, the labor market is still strong.
All these indicate that consumers' outlays are poised to improve, which bodes well for consumer discretionary stocks like Marriott Vacations Worldwide Corp., Marriott International, Inc., BJ's Wholesale Club Holdings, Inc., JAKKS Pacific, Inc. and Enthusiast Gaming Holdings Inc..
US Consumer Confidence Jumps
Consumer confidence in the United States has taken a beating for the most part of the year amid high inflation that has contributed to a slowdown in economic growth and prompted the Fed to implement an aggressive monetary policy.
However, with inflation showing signs of easing in July amid lower gasoline prices, consumer confidence improved considerably in August, indicating that Americans are feeling more confident about the economy. Notably, the average gas prices across the United States dropped below $4 a gallon in August for the first time since March.
Meanwhile, the Conference Board's consumer confidence index increased to 103.2 last month from July's downwardly revised reading of 95.3, its first increase in four months, and easily topped analysts' expectations.
Additionally, consumers' assessment of present business conditions as well as short-term economic outlook improved markedly in August. After all, the present situation index jumped to 145.4 in August from July's reading of 139.7. Similarly, the expectations index advanced to 75.1 last month from 65.6 in July.
Consumer Spending to Improve
Looking ahead, improved consumer confidence may certainly help boost spending. And with inflation showing signs of a slow but steady drop, households are undoubtedly expected to increase spending on discretionary products or services.
Lest we forget, the labor market continues to shine despite fears of a recession. Last month, employers added 315,000 new jobs, which followed gains in the months of June and July. Thus, with more jobs in hand and consumers feeling confident about their financial situation, they are expected to spend more on nonobligatory items.
Stocks Worth a Buy
We have, thus, highlighted five consumer discretionary stocks that are most likely to gain from solid consumer confidence.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today's Zacks #1 Rank stocks here.
Marriot Vacations Worldwide is a leading global vacation company, offering vacation ownership, exchange, rental, resort and property management services. VAC currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. VAC's expected earnings growth rate for the current year is 131.4%.
Marriott International is a leading worldwide hospitality company. MAR currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 8.4% over the past 60 days. MAR's expected earnings growth rate for the current year is 102.8%.
BJ's Wholesale Club has emerged as one of the preferred destinations for shoppers when it comes to essentials and other items. BJ currently has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 9.1% over the past 60 days. BJ's expected earnings growth rate for the current year is 10.8%.
JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. JAKK currently has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 73.9% over the past 60 days. JAKK's expected earnings growth rate for the current year is 88%.
Enthusiast Gaming provides a gaming media platform principally in North America. EGLX currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 7.4% over the past 60 days. EGLX's expected earnings growth rate for the current year is 26.5%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.