The Zacks Analyst Blog Highlights Carrols Restaurant Group, American Eagle Outfitters, OneSpaWorld and MGM Resorts International
For Immediate Release
Chicago, IL – August 30, 2023 – 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: Carrols Restaurant Group TAST, American Eagle Outfitters AEO, OneSpaWorld OSW and MGM Resorts International MGM.
Here are highlights from Tuesday’s Analyst Blog:
4 Stocks to Make the Most of a Resilient U.S. Consumer
Consumer spending in the United States showed unforeseen resilience amid steadily increasing interest rates as the Federal Reserve continues to tame price pressures.
This means consumers feel confident to open up their wallets, subsequently benefiting consumer discretionary stocks such as Carrols Restaurant Group, American Eagle Outfitters, OneSpaWorld and MGM Resorts International.
Pickup in Retail Outlays
Sales at U.S. retailers picked up 0.7% month over month in July as Americans indulged in purchasing online items and dined out frequently. Last month, retail sales were broad-based, gaining 3.2% year over year. Retail sales improved by 2.3% from May through July compared to a year ago.
Gas stations, departmental stores, clothing stores, home centers and grocery stores all witnessed an increase in sales, a tell-tale sign that consumers are feeling self-assured about their financial conditions. After all, wages are increasing and consumers amassed a lot of savings during the pandemic, which they are willing to spend now (read more: 5 Stocks to Make the Most of Booming Retail Sales).
Consumer Spending Bouy GDP Growth
In the second quarter, the U.S. economy had accelerated to an annual growth rate of 2.4% despite concerns about a potential recession as the Fed hiked interest rates speedily in the past year to curb inflationary pressure. Between January and March this year, the U.S. economy also advanced at an annual rate of 2%, well above analysts' estimates.
A burst of business investment drove growth in the second as well as first quarters. But consumer spending also helped the economy chug along. Consumer spending, which constitutes the bulk of economic activity, increased at an annual rate of 1.6% in the second quarter, followed by a robust 4.2% pace in the first three months of the year.
4 Top Consumer Discretionary Stocks to Buy Now
With the U.S. economy growing on the back of strong consumer spending that defied rising interest rates and surpassed expectations, consumer discretionary companies are in a better position to gain.
Thus, from an investment viewpoint, we have highlighted four such companies that provide nonobligatory products and services. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Carrols Restaurant Group is the largest BURGER KING franchisee in the United States. Currently, TAST sports a Zacks Rank #1.
The Zacks Consensus Estimate for its current-year earnings has increased 1,800% over the past 60 days. The company's expected earnings growth for the current year is 124.3%.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. AEO currently has a Zacks Rank #2.
The Zacks Consensus Estimate for its current-year earnings has increased nearly 4% over the past 60 days. The company's expected earnings growth for the current year is 8.3%.
OneSpaWorld is a provider and innovator in the fields of wellness, beauty, rejuvenation and transformation on cruise ships and land. OneSpaWorld has a Zacks Rank #2.
The Zacks Consensus Estimate for its current-year earnings has increased 15.1% over the past 60 days. The company's expected earnings growth for the current year is 117.9%.
MGM Resorts International is a holding company and primarily owns and operates casino resorts through wholly owned subsidiaries. MGM Resorts has a Zacks Rank #1.
The Zacks Consensus Estimate for its current-year earnings has increased 19.3% over the past 60 days. The company's expected earnings growth for next year is 13.4%.
Shares of Carrols Restaurant Group, American Eagle Outfitters, OneSpaWorld and MGM Resorts International have gained 400%, 17.5%, 20.3%, and 28.6%, respectively, so far this year.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
