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3 Leisure Stocks Set to Outperform Earnings Estimates in Q4
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The leisure industry is likely to have benefited from robust demand for recreational products, services and the golf business. Robust demand for concerts and improving bookings for cruise operators are aiding the industry.
Of late, the golf industry has been gaining from high participation by millennials. Technology has also been playing a vital role in reshaping the sport. India and China have become two of the largest emerging golf markets. The theme park industry is likely to have benefited from a strong consumer-spending backdrop and the absence of constraints in park capacity and ride seating (particularly in the United States).
On the other hand, hoteliers are gaining from improving occupancy and RevPAR. People are feeling more optimistic and confident about the prospect of traveling again. To capitalize on the sentiment, hotel operators are increasingly focusing on several initiatives to meet their customers’ needs as they return to hotels. The industry has exhibited resilience on the back of cost-saving initiatives and digital enhancements. Hotel owners continue to focus on maintaining a balance between maximizing hotel profitability and driving guest satisfaction.
The latest Earnings Trend report suggests that the Zacks Consumer Discretionary sector’s fourth-quarter earnings are expected to decline 1.6% from the year-ago period’s reported figure. The previous quarter recorded a 15.3% increase. The sector’s revenues are projected to increase 13.2% compared with 14.5% reported in the previous quarter.
Here we talk about three stocks, AMC Entertainment Holdings, Inc. (AMC - Free Report) , Planet Fitness, Inc. (PLNT - Free Report) and WW International, Inc. (WW - Free Report) , that are expected to beat earnings estimates in the ongoing reporting cycle.
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 chance 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.
AMC Entertainment: The company’s fourth-quarter results are likely to have benefited from an increase in global attendance and average ticket pricing. The robust performance of its domestic box office bodes well.
The company has an Earnings ESP of +18.65% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 bottom line is at a loss of 20 cents per share, compared with a loss of 11 cents reported in the prior-year quarter. The estimates for the current quarter have remained stable in the past 30 days.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
Planet Fitness: The company’s fourth-quarter results are likely to have benefited from increased membership levels, robust digitalization, strategic efforts and a solid brand presence. Given the growth potential on the back of changing market dynamics and tailwinds related to health and wellness, the company remains optimistic for a 4,000-plus domestic store opportunity over the long term. For 2022, the company expects revenues to increase in the high-50% range over 2021 levels.
The company has an Earnings ESP of +2.53% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 bottom line is pegged at 47 cents per share, up 80.8% year over year. The estimates for the current quarter have remained stable in the past 30 days.
WW International: The company has an Earnings ESP of +318.61% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 bottom line is pegged at 11 cents per share, suggesting a decline of 68.6% year over year. The estimates for the current quarter have remained stable in the past 30 days.
Image: Bigstock
3 Leisure Stocks Set to Outperform Earnings Estimates in Q4
The leisure industry is likely to have benefited from robust demand for recreational products, services and the golf business. Robust demand for concerts and improving bookings for cruise operators are aiding the industry.
Of late, the golf industry has been gaining from high participation by millennials. Technology has also been playing a vital role in reshaping the sport. India and China have become two of the largest emerging golf markets. The theme park industry is likely to have benefited from a strong consumer-spending backdrop and the absence of constraints in park capacity and ride seating (particularly in the United States).
On the other hand, hoteliers are gaining from improving occupancy and RevPAR. People are feeling more optimistic and confident about the prospect of traveling again. To capitalize on the sentiment, hotel operators are increasingly focusing on several initiatives to meet their customers’ needs as they return to hotels. The industry has exhibited resilience on the back of cost-saving initiatives and digital enhancements. Hotel owners continue to focus on maintaining a balance between maximizing hotel profitability and driving guest satisfaction.
The latest Earnings Trend report suggests that the Zacks Consumer Discretionary sector’s fourth-quarter earnings are expected to decline 1.6% from the year-ago period’s reported figure. The previous quarter recorded a 15.3% increase. The sector’s revenues are projected to increase 13.2% compared with 14.5% reported in the previous quarter.
Here we talk about three stocks, AMC Entertainment Holdings, Inc. (AMC - Free Report) , Planet Fitness, Inc. (PLNT - Free Report) and WW International, Inc. (WW - Free Report) , that are expected to beat earnings estimates in the ongoing reporting cycle.
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 chance 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.
AMC Entertainment: The company’s fourth-quarter results are likely to have benefited from an increase in global attendance and average ticket pricing.
The robust performance of its domestic box office bodes well.
The company has an Earnings ESP of +18.65% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 bottom line is at a loss of 20 cents per share, compared with a loss of 11 cents reported in the prior-year quarter. The estimates for the current quarter have remained stable in the past 30 days.
AMC Entertainment Holdings, Inc. Price and EPS Surprise
AMC Entertainment Holdings, Inc. price-eps-surprise | AMC Entertainment Holdings, Inc. Quote
Planet Fitness: The company’s fourth-quarter results are likely to have benefited from increased membership levels, robust digitalization, strategic efforts and a solid brand presence. Given the growth potential on the back of changing market dynamics and tailwinds related to health and wellness, the company remains optimistic for a 4,000-plus domestic store opportunity over the long term. For 2022, the company expects revenues to increase in the high-50% range over 2021 levels.
The company has an Earnings ESP of +2.53% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 bottom line is pegged at 47 cents per share, up 80.8% year over year. The estimates for the current quarter have remained stable in the past 30 days.
Planet Fitness, Inc. Price and EPS Surprise
Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote
WW International: The company has an Earnings ESP of +318.61% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter 2022 bottom line is pegged at 11 cents per share, suggesting a decline of 68.6% year over year. The estimates for the current quarter have remained stable in the past 30 days.
WW International, Inc. Price and EPS Surprise
WW International, Inc. price-eps-surprise | WW International, Inc. Quote