The Zacks Analyst Blog Highlights Hilton Grand Vacations, Royal Caribbean Cruises, Cinemark and OneSpaWorld
For Immediate Release
Chicago, IL – June 29, 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: Hilton Grand Vacations HGV, Royal Caribbean Cruises RCL, Cinemark CNK and OneSpaWorld OSW.
Here are highlights from Wednesday’s Analyst Blog:
4 Big Gainers on Soaring Consumer Confidence
Americans, at present, are feeling much more self-assured about their well-being and are unfazed by the Federal Reserve’s aggressive monetary measures to curb elevated inflation. Their outlook for family finances improved substantially, and a few are apprehensive about an impending recession.
This is because the consumer confidence index climbed to 109.7 in June from May’s revised reading of 102.5, and touched the highest level since January 2022, per the Conference Board. Consumers’ assessment of the present business and employment scenario also improved, with the present situation index coming in at 155.3 in June compared with 148.9 in May. The present situation index, in reality, hit the highest level in nearly two years.
The expectations index, which indicates how consumers feel about economic conditions in the forthcoming six-month period, increased to 79.3 in June from May’s reading of 71.5, its highest level this year. Moreover, consumers do feel that inflation will slow down soon, compelling the Fed to eventually pause rate hikes, and bolster the economy. Americans expect price pressures to increase by 6% next year, the lowest reading since the end of 2020, citing a MarketWatch article.
So, what drove consumer confidence? Household confidence was mainly determined by the current strength in the labor market that ebbed concerns about an economic slump. Hiring accelerated in May, with 339,000 new jobs being added to the economy, per the Labor Department. May’s hiring was robust, and job growth was positive for the 29th consecutive month.
At the same time, the jobless rate continues to hover below the coveted 4% mark, signifying that Americans are secure in their jobs. Average hourly earnings too improved by 0.3% in May after gaining 0.4% in April (read more: 5 Stocks to Gain From Stunning Jobs Growth in May).
With consumers gaining confidence amid wage growth and a lower unemployment level, household spending is set to improve. And with renewed strength in consumer spending, consumer discretionary companies are set to grow as the outlays play a vital role in shaping their revenues.
We have, thus, selected four consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also boast a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Hilton Grand Vacations is engaged in the hospitality business. Hilton Grand Vacations has a Zacks Rank #1 and a VGM Score of B.
The Zacks Consensus Estimate for HGV’s current-year earnings has moved up 4.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.9%.
Royal Caribbean Cruises primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which includes the budget and luxury segments. Royal Caribbean Cruises has a Zacks Rank #1 and a VGM Score of B.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 46.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 162.9%.
Cinemark is a leader in the motion picture exhibition industry. Cinemark has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for the company’s current-year earnings has moved up 102.4% over the past 60 days. CNK’s expected earnings growth rate for the current year is 137.6%.
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 and a VGM Score of A.
The Zacks Consensus Estimate for OSW’s current-year earnings has moved up 12.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 89.3%.
Shares of Hilton Grand Vacations, Royal Caribbean Cruises, Cinemark, and OneSpaWorld, by the way, have gained 16.6%, 105.2%, 83.1%, and 20.5%, respectively, so far this year.
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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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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Cinemark Holdings Inc (CNK) : Free Stock Analysis Report
Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
