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3 Leisure Stocks Set to Outperform Q4 Earnings Expectations
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Key Takeaways
POOL is set to report on Feb. 19 with 1.10% Earnings ESP and EPS seen at 99 cents vs. 97 cents a year ago.
Hilton Grand Vacations has 1.19% ESP, with EPS projected at $1.05 vs. 49 cents last year.
PENN Entertainment has 7.03% ESP, with loss expected to narrow to 20 cents per share.
The leisure industry is likely to have benefited from resilient consumer demand in the fourth quarter of 2025, supported by steady employment levels and a continued preference for experiences over goods. Even with selective pressure on discretionary budgets, many consumers prioritized travel, entertainment and out-of-home activities, particularly around the holiday season. Strong booking trends for leisure travel, higher attendance at events and solid visitation at resorts, casinos, theme parks and cruise offerings helped sustain top-line momentum. Seasonal demand, coupled with pent-up appetite for social and recreational experiences, provided a natural lift to revenues.
Pricing discipline also played a meaningful role in supporting the industry’s top line. Many leisure operators leaned on dynamic pricing, premium offerings and bundled experiences to offset pockets of softer traffic. Higher room rates, onboard spending, ticket pricing and ancillary revenues, such as food, beverages, merchandise and entertainment upgrades, helped drive average revenue per customer higher. This strategy allowed companies to grow revenues even where volume growth was modest, especially in premium and destination-oriented segments.
On the cost side, the bottom line likely benefited from easing inflationary pressures compared with prior years. Labor availability improved in several markets, helping moderate wage growth and reduce reliance on overtime or temporary staffing. At the same time, companies continued to benefit from operational efficiencies implemented earlier, including streamlined staffing models, better capacity utilization and technology-driven productivity gains. Lower energy and input cost volatility relative to earlier periods further helped stabilize operating expenses.
Finally, disciplined capital allocation and balance sheet management supported profitability in the quarter. Many leisure companies entered late 2025 with healthier financial positions, allowing them to limit aggressive discounting and focus on margin-accretive growth. Reduced refinancing pressure, lower interest expense for some operators and a sharper focus on high-return assets and experiences helped translate solid revenues into stronger earnings. Together, sustained demand, pricing power, cost control and financial discipline likely combined to aid both top and bottom-line performance in the fourth quarter of 2025.
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 this 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.
The company is likely to have benefited from steady maintenance demand, healthy remodeling activity and an expanding distribution footprint. Also, the ongoing enhancement of its digital capabilities, driven by the broader adoption of the POOL360 platform, has further strengthened growth momentum. Supported by a diversified product mix, a robust private-label portfolio and strong strategic vendor partnerships, Pool Corp. remains optimistic about sustaining growth.
The Zacks Consensus Estimate for fourth-quarter 2025 earnings per share (EPS) is pegged at 99 cents compared with 97 cents reported in the prior-year quarter.
Hilton Grand Vacations Inc. (HGV - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 26. The company has a Zacks Rank #3 and an Earnings ESP of +1.19%.
Hilton Grand Vacations’ fourth-quarter 2025 results are likely to be aided by solid leisure demand and healthy tour flow, which have supported contract sales and financing income. Effective pricing, a favorable sales mix and disciplined cost control are likely to have helped limit expense pressure, allowing Hilton Grand Vacations to translate steady revenues into improved profitability.
The Zacks Consensus Estimate for fourth-quarter 2025 EPS is pegged at $1.05 compared with 49 cents reported in the prior-year quarter.
Hilton Grand Vacations Inc. Price and EPS Surprise
PENN Entertainment, Inc. (PENN - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 26. The company has a Zacks Rank #3 and an Earnings ESP of +7.03%.
PENN Entertainment is likely to have benefited from the expansion of retail properties and the growing momentum in digital platforms. Also, a focus on the loyalty program bodes well. The company's PENN Play loyalty program comprises more than 33 million members as of Sept. 30, 2025. Furthermore, PENN Entertainment has been focusing on strengthening its omnichannel strategy through standalone Hollywood iCasino products and cross-selling initiatives to enhance database growth.
The Zacks Consensus Estimate for fourth-quarter 2025 EPS is pegged at a loss of 20 cents per share compared with a loss of 44 cents reported in the prior-year quarter.
View the Zacks #1 Rank List
Image: Bigstock
3 Leisure Stocks Set to Outperform Q4 Earnings Expectations
Key Takeaways
The leisure industry is likely to have benefited from resilient consumer demand in the fourth quarter of 2025, supported by steady employment levels and a continued preference for experiences over goods. Even with selective pressure on discretionary budgets, many consumers prioritized travel, entertainment and out-of-home activities, particularly around the holiday season. Strong booking trends for leisure travel, higher attendance at events and solid visitation at resorts, casinos, theme parks and cruise offerings helped sustain top-line momentum. Seasonal demand, coupled with pent-up appetite for social and recreational experiences, provided a natural lift to revenues.
Pricing discipline also played a meaningful role in supporting the industry’s top line. Many leisure operators leaned on dynamic pricing, premium offerings and bundled experiences to offset pockets of softer traffic. Higher room rates, onboard spending, ticket pricing and ancillary revenues, such as food, beverages, merchandise and entertainment upgrades, helped drive average revenue per customer higher. This strategy allowed companies to grow revenues even where volume growth was modest, especially in premium and destination-oriented segments.
On the cost side, the bottom line likely benefited from easing inflationary pressures compared with prior years. Labor availability improved in several markets, helping moderate wage growth and reduce reliance on overtime or temporary staffing. At the same time, companies continued to benefit from operational efficiencies implemented earlier, including streamlined staffing models, better capacity utilization and technology-driven productivity gains. Lower energy and input cost volatility relative to earlier periods further helped stabilize operating expenses.
Finally, disciplined capital allocation and balance sheet management supported profitability in the quarter. Many leisure companies entered late 2025 with healthier financial positions, allowing them to limit aggressive discounting and focus on margin-accretive growth. Reduced refinancing pressure, lower interest expense for some operators and a sharper focus on high-return assets and experiences helped translate solid revenues into stronger earnings. Together, sustained demand, pricing power, cost control and financial discipline likely combined to aid both top and bottom-line performance in the fourth quarter of 2025.
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 this 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.
Pool Corporation (POOL - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 19. The company has a Zacks Rank #3 and an Earnings ESP of +1.10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to have benefited from steady maintenance demand, healthy remodeling activity and an expanding distribution footprint. Also, the ongoing enhancement of its digital capabilities, driven by the broader adoption of the POOL360 platform, has further strengthened growth momentum. Supported by a diversified product mix, a robust private-label portfolio and strong strategic vendor partnerships, Pool Corp. remains optimistic about sustaining growth.
The Zacks Consensus Estimate for fourth-quarter 2025 earnings per share (EPS) is pegged at 99 cents compared with 97 cents reported in the prior-year quarter.
Pool Corporation Price and EPS Surprise
Pool Corporation price-eps-surprise | Pool Corporation Quote
Hilton Grand Vacations Inc. (HGV - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 26. The company has a Zacks Rank #3 and an Earnings ESP of +1.19%.
Hilton Grand Vacations’ fourth-quarter 2025 results are likely to be aided by solid leisure demand and healthy tour flow, which have supported contract sales and financing income. Effective pricing, a favorable sales mix and disciplined cost control are likely to have helped limit expense pressure, allowing Hilton Grand Vacations to translate steady revenues into improved profitability.
The Zacks Consensus Estimate for fourth-quarter 2025 EPS is pegged at $1.05 compared with 49 cents reported in the prior-year quarter.
Hilton Grand Vacations Inc. Price and EPS Surprise
Hilton Grand Vacations Inc. price-eps-surprise | Hilton Grand Vacations Inc. Quote
PENN Entertainment, Inc. (PENN - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 26. The company has a Zacks Rank #3 and an Earnings ESP of +7.03%.
PENN Entertainment is likely to have benefited from the expansion of retail properties and the growing momentum in digital platforms. Also, a focus on the loyalty program bodes well. The company's PENN Play loyalty program comprises more than 33 million members as of Sept. 30, 2025. Furthermore, PENN Entertainment has been focusing on strengthening its omnichannel strategy through standalone Hollywood iCasino products and cross-selling initiatives to enhance database growth.
The Zacks Consensus Estimate for fourth-quarter 2025 EPS is pegged at a loss of 20 cents per share compared with a loss of 44 cents reported in the prior-year quarter.
PENN Entertainment, Inc. Price and EPS Surprise
PENN Entertainment, Inc. price-eps-surprise | PENN Entertainment, Inc. Quote