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3 Leisure Stocks Poised to Beat Earnings Estimates in Q4
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The leisure industry is likely to have benefited from robust demand for recreational products and golf business. Heightened golfer participation from existing and new participants is expected to have driven the golf industry.
Of late, the golf industry has been gaining from high participation by millennials. Technology is playing a vital role in reshaping the sport. Per the Report, Golf's influence extends to approximately 123 million individuals, representing more than a third of the U.S. population aged five and above. This encompasses individuals who played golf on or off the course and followed golf through various media channels, such as television, online platforms, reading about the game, or listening to golf-related podcasts. This figure reflects a 30% increase from 2016 levels.
Respective companies are utilizing their consumer data platforms and digital teams to promote their products. Also, golf courses and retail partners are making investments in their facilities and offerings to align with changing consumer preferences. The strategic initiative paves the path for a competitive advantage and welcoming more individuals into the golfing community. However, the uncertain consumer environment and macroeconomic hurdles like supply chain constraints are likely to have influenced the growth pace in the to-be-reported quarter.
The boat industry is committed to enhancing the consumer experience, optimizing pipeline management and leveraging digital marketing strategies to foster growth. Investments in new products, enhanced features, vertical integration, and capacity expansions are expected to have bolstered companies' market share in the upcoming quarter. Confidence in the industry's prospects is underpinned by consumer-centric brand portfolios, adaptable cost structures, and robust balance sheets, facilitating sustained investments in long-term growth endeavors.
However, the stabilization of retail boat demand (following the initial surge post-COVID) coupled with broader economic uncertainty and a prolonged interest rate environment is likely to act as a roadblock. According to NMMA, new powerboat retail sales are expected to experience a minor decline in 2023, estimated to range from 1% to 3%, totaling approximately 258,000 units. Recreational boating is expected to maintain a similar level of new unit sales in 2024, comparable to the figures observed in 2023.
The cruise industry is gaining traction on the back of its staycation offerings and efforts to minimize the price difference compared to land-based vacations. Companies are actively implementing strategic measures throughout their operations to enhance efficiency and optimize costs, aiming to rebuild and enhance profitability. Many firms are reporting higher cumulative bookings for 2023 compared with 2019 levels, along with strong advance ticket sales. However, ongoing geopolitical uncertainties, macroeconomic risks, inflationary pressures and supply chain challenges are likely to act as a roadblock.
The theme park industry is likely to have benefited from increased food and beverage sales, fueled by a revitalized culinary selection and a lineup of festivals. Additionally, strategic investments in park amenities, beautification, technology and new attractions are anticipated to contribute positively. The industry foresees further growth potential as companies remain vigilant in exploring additional business development opportunities and aligning with evolving customer preferences. Initiatives such as a restructured pricing model, strategic partnerships, the introduction of multiple major rides and the enhancement of seasonal events indicate a positive trajectory for the industry.
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 a 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.
Academy Sports’ fourth quarter performance is likely to have benefitted from new store expansion, fine-tuning of customer segmentation and playbook developments. This and investments in areas of omnichannel, supply chain and customer data are likely to have aided the company’s performance in the to-be-reported quarter. Increased focus on leveraging customer data platforms and improving customer identification and engagement is likely to have driven incremental sales revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $2.31 per share, suggesting growth of 13.2% from $2.04 reported in the prior-year quarter.
Academy Sports and Outdoors, Inc. Price and EPS Surprise
Acushnet Holdings Corp. (GOLF - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 29. The company has a Zacks Rank #2 and an Earnings ESP of +20.36%.
Acushnet Holdings’ fourth quarter performance is likely to have benefitted from healthy golfer participation and strong demand across its portfolio of brands. This and strength in gear delivery service is likely to have aided the company’s performance in the to-be-reported quarter. Moreover, benefits arising on account of new product pipelines, including Titleist gear, FootJoy and Shoes, are likely.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at a loss of 38 cents per share.
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 22. The company has a Zacks Rank #3 and an Earnings ESP of +3.77%.
Planet Fitness’s fourth quarter performance is likely to have benefitted from solid expansion efforts and strategic initiatives. Also, its focus on a new growth model to enhance returns from new stores bodes well. The company continues to focus on its marketing initiatives to drive growth. The company has transitioned from 16 marketing agencies to one (Barkley) to fuel incremental member growth. Consistent with the advertising strategy (covering national and local levels), the transition is likely to pave the path for lower media costs along with solid member acquisition in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 58 cents per share, suggesting growth of 9.4% from 53 cents reported in the prior-year quarter.
Image: Bigstock
3 Leisure Stocks Poised to Beat Earnings Estimates in Q4
The leisure industry is likely to have benefited from robust demand for recreational products and golf business. Heightened golfer participation from existing and new participants is expected to have driven the golf industry.
Of late, the golf industry has been gaining from high participation by millennials. Technology is playing a vital role in reshaping the sport. Per the Report, Golf's influence extends to approximately 123 million individuals, representing more than a third of the U.S. population aged five and above. This encompasses individuals who played golf on or off the course and followed golf through various media channels, such as television, online platforms, reading about the game, or listening to golf-related podcasts. This figure reflects a 30% increase from 2016 levels.
Respective companies are utilizing their consumer data platforms and digital teams to promote their products. Also, golf courses and retail partners are making investments in their facilities and offerings to align with changing consumer preferences. The strategic initiative paves the path for a competitive advantage and welcoming more individuals into the golfing community. However, the uncertain consumer environment and macroeconomic hurdles like supply chain constraints are likely to have influenced the growth pace in the to-be-reported quarter.
The boat industry is committed to enhancing the consumer experience, optimizing pipeline management and leveraging digital marketing strategies to foster growth. Investments in new products, enhanced features, vertical integration, and capacity expansions are expected to have bolstered companies' market share in the upcoming quarter. Confidence in the industry's prospects is underpinned by consumer-centric brand portfolios, adaptable cost structures, and robust balance sheets, facilitating sustained investments in long-term growth endeavors.
However, the stabilization of retail boat demand (following the initial surge post-COVID) coupled with broader economic uncertainty and a prolonged interest rate environment is likely to act as a roadblock. According to NMMA, new powerboat retail sales are expected to experience a minor decline in 2023, estimated to range from 1% to 3%, totaling approximately 258,000 units. Recreational boating is expected to maintain a similar level of new unit sales in 2024, comparable to the figures observed in 2023.
The cruise industry is gaining traction on the back of its staycation offerings and efforts to minimize the price difference compared to land-based vacations. Companies are actively implementing strategic measures throughout their operations to enhance efficiency and optimize costs, aiming to rebuild and enhance profitability. Many firms are reporting higher cumulative bookings for 2023 compared with 2019 levels, along with strong advance ticket sales. However, ongoing geopolitical uncertainties, macroeconomic risks, inflationary pressures and supply chain challenges are likely to act as a roadblock.
The theme park industry is likely to have benefited from increased food and beverage sales, fueled by a revitalized culinary selection and a lineup of festivals. Additionally, strategic investments in park amenities, beautification, technology and new attractions are anticipated to contribute positively. The industry foresees further growth potential as companies remain vigilant in exploring additional business development opportunities and aligning with evolving customer preferences. Initiatives such as a restructured pricing model, strategic partnerships, the introduction of multiple major rides and the enhancement of seasonal events indicate a positive trajectory for the industry.
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 a 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.
Academy Sports and Outdoors, Inc. (ASO - Free Report) is scheduled to report fourth-quarter 2023 results tentatively on Mar 21, 2024. The company has a Zacks Rank #3 and an Earnings ESP of +0.76%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Academy Sports’ fourth quarter performance is likely to have benefitted from new store expansion, fine-tuning of customer segmentation and playbook developments. This and investments in areas of omnichannel, supply chain and customer data are likely to have aided the company’s performance in the to-be-reported quarter. Increased focus on leveraging customer data platforms and improving customer identification and engagement is likely to have driven incremental sales revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $2.31 per share, suggesting growth of 13.2% from $2.04 reported in the prior-year quarter.
Academy Sports and Outdoors, Inc. Price and EPS Surprise
Academy Sports and Outdoors, Inc. price-eps-surprise | Academy Sports and Outdoors, Inc. Quote
Acushnet Holdings Corp. (GOLF - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 29. The company has a Zacks Rank #2 and an Earnings ESP of +20.36%.
Acushnet Holdings’ fourth quarter performance is likely to have benefitted from healthy golfer participation and strong demand across its portfolio of brands. This and strength in gear delivery service is likely to have aided the company’s performance in the to-be-reported quarter. Moreover, benefits arising on account of new product pipelines, including Titleist gear, FootJoy and Shoes, are likely.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at a loss of 38 cents per share.
Acushnet Price and EPS Surprise
Acushnet price-eps-surprise | Acushnet Quote
Planet Fitness, Inc. (PLNT - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 22. The company has a Zacks Rank #3 and an Earnings ESP of +3.77%.
Planet Fitness’s fourth quarter performance is likely to have benefitted from solid expansion efforts and strategic initiatives. Also, its focus on a new growth model to enhance returns from new stores bodes well. The company continues to focus on its marketing initiatives to drive growth. The company has transitioned from 16 marketing agencies to one (Barkley) to fuel incremental member growth. Consistent with the advertising strategy (covering national and local levels), the transition is likely to pave the path for lower media costs along with solid member acquisition in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 58 cents per share, suggesting growth of 9.4% from 53 cents reported in the prior-year quarter.
Planet Fitness, Inc. Price and EPS Surprise
Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.