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Xenia Hotels & Resorts and THOR have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 4, 2024 – Zacks Equity Research shares Xenia Hotels & Resorts, Inc. (XHR - Free Report) as the Bull of the Day and THOR Industries, Inc. (THO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Mills (GIS - Free Report) , Molson Coors (TAP - Free Report) and Procter & Gamble (PG - Free Report) .
Xenia Hotels & Resorts, Inc. is seeing normalization in lodging demand after several years of volatility during the pandemic. This Zacks Rank #1 (Strong Buy) is expected to grow earnings in 2024.
Xenia Hotels & Resorts is a REIT that specializes in luxury and upper upscale hotels and resorts. It owns 32 hotels comprising 9,514 rooms across 14 states. It's hotels are operated and/or licensed by industry leaders in hospitality such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, The Kessler Collection and Davidson.
A Beat in the Fourth Quarter of 2023
On Feb 27, 2024, Xenia reported fourth quarter 2023 results and beat on the Zacks Consensus by $0.04. Earnings were $0.41 versus the Zacks Consensus of $0.37.
Same-property RevPAR fell 3.4% to $157.69 year-over-year but excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, which is undergoing a $110 million transformative renovation, it would have seen RevPAR of $162.51. That's an increase of 1.2% compared to the fourth quarter of 2022.
"Reflecting on 2023, our overall performance was supported by ongoing asset management initiatives as lodging demand across our markets started to normalize," said Marcel Verbaas, CEO.
"We benefited from good cost control during a time of continued expense pressures and normalization of staffing levels at our assets," he added.
"On the project management side, we completed several important capital projects, including comprehensive renovations at Kimpton Canary Hotel Santa Barbara, Kimpton Hotel Monaco Salt Lake City and Grand Bohemian Hotel Orlando, and made substantial progress on our largest and most impactful renovation project, the transformative renovation and up branding of Hyatt Regency Scottsdale," continued Mr. Verbaas.
Bullish About 2024
Both the company and the analysts are bullish about 2024. Xenia expects recovery in business transient and group demand as the year progresses.
Additionally, the Hyatt Regency Scottsdale will complete its transformation into a Grand Hyatt luxury resort which should bring extra benefits in the later part of the year.
Xenia also disclosed in Feb 2024, that the quarter-to-date same-property RevPAR, excluding thee Hyatt Regency Scottsdale, was up about 4.9% through Feb 22, 2024, compared to the same period a year ago.
The analysts have raised earnings estimates for both 2024 and 2025.
3 estimates have been raised for 2024 in the last month, pushing the 2024 Zacks Consensus Estimate up to $1.68 from $1.59. That's earnings growth of 9.1% as the company made $1.54 last year.
Shares Are Cheap
Shares of Xenia caught a bid after the last earnings report and are up 9.5% year-to-date. They're still cheap, though, with a forward P/E of 8.8.
Xenia also pays a dividend. The Board of Directors increased the quarterly cash dividend for the first quarter by 20% to $0.12 per share. That dividend will be paid on Apr 15, 2024 to all holders of record as of the close of business on Mar 28, 2024.
The dividend is currently yielding 3.2%.
For investors looking for income who also want to own hotels, Xenia should be on your short list.
THOR Industries, Inc. is facing industry headwinds as higher interest rates hit the demand for RVs. This Zacks Rank #5 (Strong Sell) recently cut its fiscal 2024 earnings guidance.
THOR is the world's largest manufacturer of recreational vehicles, otherwise known as "RVs." It was founded on Aug 29, 1980 when it acquired the iconic brand of Airstream.
Big Miss on Fiscal Q2 Earnings
On Mar 6, 2024, THOR reported its fiscal second quarter 2024 earnings and missed big on the Zacks Consensus. Earnings were $0.40 versus the Zacks Consensus which was looking for $0.69. That's a miss of $0.29, or 42%.
It was the company's first miss in 4 quarters.
THOR saw seasonally lower retail demand and cautious dealer sentiment. Macro conditions continued to pressure the top-line.
THOR worked with independent dealer partners to match wholesale production with the pace of retail sales. It also enacted promotional programs to assist in moving prior-model-year units and stimulate retail demand.
But dealers are facing elevated floor plan financing costs that have put substantial pressure on their operations. As a result, THOR believes dealers will limit inventory levels.
Consumer interest in the RV lifestyle remains high as does attendance at RV shows.
THOR Cuts Full Year Earnings Guidance
THOR remains cautious heading into the prime retail selling season. Higher interest rates are pressuring both the independent dealers as well as consumers' ability to make large discretionary purchases.
As a result, THOR lowered its full year earnings guidance to a range of $5.00 to $5.50 from $6.25 to $7.25.
The analysts lowered too. 4 estimates have been cut for fiscal 2024 in the last month, pushing the Zacks Consensus down to $5.19 from $6.62. That's in the range the company gave.
That's also an earnings decline of 25.3% from fiscal 2023, when THOR made $6.95.
Shares Aren't Cheap
Despite the cutting of guidance, shares of THOR haven't gotten hit. Over the last month, shares are down just 12.8%. They are nowhere near 52-week lows.
They also aren't cheap on a P/E basis. THOR trades with a forward P/E of 21.7.
It continues to reward shareholders, however, with a dividend, currently yielding 1.7%.
The RV industry is still facing numerous headwinds. Investors interested in THOR, and the RV industry, might want to wait on the sidelines until the consensus earnings are on the move higher, instead of lower.
Additional content:
Build Portfolio Defense with These 3 Top-Rated Stocks
Stocks in the Zacks Consumer Staples sector carry a defensive nature, as these companies’ products have an advantageous ability to generate consistent demand in the face of many economic situations.
Three top-ranked stocks from the realm – General Mills, Molson Coors and Procter & Gamble – could all be considerations for investors looking to heighten their portfolio’s defense.
Let’s take a closer look at each one.
General Mills
General Mills is a global manufacturer and marketer of branded consumer foods sold through retail stores. Analysts have taken their expectations modestly higher across the board, landing the stock into a Zacks Rank #2 (Buy).
Shares have delivered market-beating gains over the last month, gaining 9% in value and widely outperforming relative to the S&P 500 thanks to better-than-expected quarterly results.
In fact, the company has regularly exceeded earnings expectations as of late, beating our consensus EPS expectations by an average of 7% across its last four releases. Shares could also interest income-focused investors, with GIS shares currently yielding a solid 3.4% annually.
Dividend growth is also apparent, with the company boasting a 4% five-year annualized dividend growth rate.
Molson Coors
With centuries of operations, Molson Coors delivers extraordinary brands that delight the world's beer drinkers. The stock sports a Zacks Rank #2 (Buy), with earnings expectations creeping higher across the board.
Keep an eye out for the company’s upcoming quarterly release expected in early May, as consensus expectations currently allude to a 29% pop in earnings on 6% higher sales. And shares aren’t valuation stretched, with the current 11.8X forward 12-month earnings multiple nicely beneath the respective Zacks Beverages – Alcohol industry average of 18.3X.
Better-than-expected quarterly results have given fuel to shares in back-to-back instances.
Procter & Gamble
Procter & Gamble, also commonly referred to as P&G, is a branded consumer products company. The stock presently sports a favorable Zacks Rank #2 (Buy). Like TAP, better-than-expected quarterly results have pleased investors, with shares moving higher post-earnings in back-to-back instances.
The company’s shareholder-friendly nature can’t be overlooked, currently sporting a 6% five-year annualized dividend growth rate. Shares currently yield 2.3% annually paired with a payout ratio sitting at 59% of the company’s earnings.
Bottom Line
Consumer Staples stocks can heighten a portfolio’s defense, as these companies’ products generate reliable and consistent demand in the face of many economic situations.
In addition, many of these stocks pay dividends, undoubtedly a significant boost.
For those looking to shield themselves against volatility, all three stocks above could be of interest.
All three have seen their near-term earnings outlooks improve as of late, a major positive.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Xenia Hotels & Resorts and THOR have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 4, 2024 – Zacks Equity Research shares Xenia Hotels & Resorts, Inc. (XHR - Free Report) as the Bull of the Day and THOR Industries, Inc. (THO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Mills (GIS - Free Report) , Molson Coors (TAP - Free Report) and Procter & Gamble (PG - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Xenia Hotels & Resorts, Inc. is seeing normalization in lodging demand after several years of volatility during the pandemic. This Zacks Rank #1 (Strong Buy) is expected to grow earnings in 2024.
Xenia Hotels & Resorts is a REIT that specializes in luxury and upper upscale hotels and resorts. It owns 32 hotels comprising 9,514 rooms across 14 states. It's hotels are operated and/or licensed by industry leaders in hospitality such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, The Kessler Collection and Davidson.
A Beat in the Fourth Quarter of 2023
On Feb 27, 2024, Xenia reported fourth quarter 2023 results and beat on the Zacks Consensus by $0.04. Earnings were $0.41 versus the Zacks Consensus of $0.37.
Same-property RevPAR fell 3.4% to $157.69 year-over-year but excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, which is undergoing a $110 million transformative renovation, it would have seen RevPAR of $162.51. That's an increase of 1.2% compared to the fourth quarter of 2022.
"Reflecting on 2023, our overall performance was supported by ongoing asset management initiatives as lodging demand across our markets started to normalize," said Marcel Verbaas, CEO.
"We benefited from good cost control during a time of continued expense pressures and normalization of staffing levels at our assets," he added.
"On the project management side, we completed several important capital projects, including comprehensive renovations at Kimpton Canary Hotel Santa Barbara, Kimpton Hotel Monaco Salt Lake City and Grand Bohemian Hotel Orlando, and made substantial progress on our largest and most impactful renovation project, the transformative renovation and up branding of Hyatt Regency Scottsdale," continued Mr. Verbaas.
Bullish About 2024
Both the company and the analysts are bullish about 2024. Xenia expects recovery in business transient and group demand as the year progresses.
Additionally, the Hyatt Regency Scottsdale will complete its transformation into a Grand Hyatt luxury resort which should bring extra benefits in the later part of the year.
Xenia also disclosed in Feb 2024, that the quarter-to-date same-property RevPAR, excluding thee Hyatt Regency Scottsdale, was up about 4.9% through Feb 22, 2024, compared to the same period a year ago.
The analysts have raised earnings estimates for both 2024 and 2025.
3 estimates have been raised for 2024 in the last month, pushing the 2024 Zacks Consensus Estimate up to $1.68 from $1.59. That's earnings growth of 9.1% as the company made $1.54 last year.
Shares Are Cheap
Shares of Xenia caught a bid after the last earnings report and are up 9.5% year-to-date. They're still cheap, though, with a forward P/E of 8.8.
Xenia also pays a dividend. The Board of Directors increased the quarterly cash dividend for the first quarter by 20% to $0.12 per share. That dividend will be paid on Apr 15, 2024 to all holders of record as of the close of business on Mar 28, 2024.
The dividend is currently yielding 3.2%.
For investors looking for income who also want to own hotels, Xenia should be on your short list.
Bear of the Day:
THOR Industries, Inc. is facing industry headwinds as higher interest rates hit the demand for RVs. This Zacks Rank #5 (Strong Sell) recently cut its fiscal 2024 earnings guidance.
THOR is the world's largest manufacturer of recreational vehicles, otherwise known as "RVs." It was founded on Aug 29, 1980 when it acquired the iconic brand of Airstream.
Big Miss on Fiscal Q2 Earnings
On Mar 6, 2024, THOR reported its fiscal second quarter 2024 earnings and missed big on the Zacks Consensus. Earnings were $0.40 versus the Zacks Consensus which was looking for $0.69. That's a miss of $0.29, or 42%.
It was the company's first miss in 4 quarters.
THOR saw seasonally lower retail demand and cautious dealer sentiment. Macro conditions continued to pressure the top-line.
THOR worked with independent dealer partners to match wholesale production with the pace of retail sales. It also enacted promotional programs to assist in moving prior-model-year units and stimulate retail demand.
But dealers are facing elevated floor plan financing costs that have put substantial pressure on their operations. As a result, THOR believes dealers will limit inventory levels.
Consumer interest in the RV lifestyle remains high as does attendance at RV shows.
THOR Cuts Full Year Earnings Guidance
THOR remains cautious heading into the prime retail selling season. Higher interest rates are pressuring both the independent dealers as well as consumers' ability to make large discretionary purchases.
As a result, THOR lowered its full year earnings guidance to a range of $5.00 to $5.50 from $6.25 to $7.25.
The analysts lowered too. 4 estimates have been cut for fiscal 2024 in the last month, pushing the Zacks Consensus down to $5.19 from $6.62. That's in the range the company gave.
That's also an earnings decline of 25.3% from fiscal 2023, when THOR made $6.95.
Shares Aren't Cheap
Despite the cutting of guidance, shares of THOR haven't gotten hit. Over the last month, shares are down just 12.8%. They are nowhere near 52-week lows.
They also aren't cheap on a P/E basis. THOR trades with a forward P/E of 21.7.
It continues to reward shareholders, however, with a dividend, currently yielding 1.7%.
The RV industry is still facing numerous headwinds. Investors interested in THOR, and the RV industry, might want to wait on the sidelines until the consensus earnings are on the move higher, instead of lower.
Additional content:
Build Portfolio Defense with These 3 Top-Rated Stocks
Stocks in the Zacks Consumer Staples sector carry a defensive nature, as these companies’ products have an advantageous ability to generate consistent demand in the face of many economic situations.
Three top-ranked stocks from the realm – General Mills, Molson Coors and Procter & Gamble – could all be considerations for investors looking to heighten their portfolio’s defense.
Let’s take a closer look at each one.
General Mills
General Mills is a global manufacturer and marketer of branded consumer foods sold through retail stores. Analysts have taken their expectations modestly higher across the board, landing the stock into a Zacks Rank #2 (Buy).
Shares have delivered market-beating gains over the last month, gaining 9% in value and widely outperforming relative to the S&P 500 thanks to better-than-expected quarterly results.
In fact, the company has regularly exceeded earnings expectations as of late, beating our consensus EPS expectations by an average of 7% across its last four releases. Shares could also interest income-focused investors, with GIS shares currently yielding a solid 3.4% annually.
Dividend growth is also apparent, with the company boasting a 4% five-year annualized dividend growth rate.
Molson Coors
With centuries of operations, Molson Coors delivers extraordinary brands that delight the world's beer drinkers. The stock sports a Zacks Rank #2 (Buy), with earnings expectations creeping higher across the board.
Keep an eye out for the company’s upcoming quarterly release expected in early May, as consensus expectations currently allude to a 29% pop in earnings on 6% higher sales. And shares aren’t valuation stretched, with the current 11.8X forward 12-month earnings multiple nicely beneath the respective Zacks Beverages – Alcohol industry average of 18.3X.
Better-than-expected quarterly results have given fuel to shares in back-to-back instances.
Procter & Gamble
Procter & Gamble, also commonly referred to as P&G, is a branded consumer products company. The stock presently sports a favorable Zacks Rank #2 (Buy). Like TAP, better-than-expected quarterly results have pleased investors, with shares moving higher post-earnings in back-to-back instances.
The company’s shareholder-friendly nature can’t be overlooked, currently sporting a 6% five-year annualized dividend growth rate. Shares currently yield 2.3% annually paired with a payout ratio sitting at 59% of the company’s earnings.
Bottom Line
Consumer Staples stocks can heighten a portfolio’s defense, as these companies’ products generate reliable and consistent demand in the face of many economic situations.
In addition, many of these stocks pay dividends, undoubtedly a significant boost.
For those looking to shield themselves against volatility, all three stocks above could be of interest.
All three have seen their near-term earnings outlooks improve as of late, a major positive.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.