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The Zacks Analyst Blog Highlights: GO, LCUT, OLLI, PBH and SPB

Zacks Equity Research
·6 min read

For Immediate Release

Chicago, IL – October 6, 2020 – 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 Grocery Outlet Holding Corp. GO, Lifetime Brands, Inc. LCUT, Ollie's Bargain Outlet Holdings, Inc. OLLI, Prestige Consumer Healthcare Inc. PBH and Spectrum Brands Holdings Inc. SPB.

Here are highlights from Monday’s Analyst Blog:

5 Essential Goods Stocks to Tap the Rise in Consumer Spending

U.S. consumer spending increased 1% in August, mirroring the gradual regaining of confidence and economic recovery from the worst of the coronavirus pandemic. The August gain marked the third straight monthly increase in consumer spending.

The rise in consumer spending comes despite a decline in personal income. However, with a vaccine for the deadly coronavirus yet to be developed, people are still reeling under the fear of getting infected and are stockpiling on necessities, which is pushing up their spending.

Americans Spend More Despite Decline in Personal Income

A report from the Commerce Department on Oct 1 showed that consumer spending rose 1% in August after increasing 1.5% in July. Economists had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, to advance 0.8% in August.

The rise comes despite a 2.7% drop in personal income in August, reflecting a decline in unemployment insurance benefits. A $600 unemployment subsidy ended in July and was replaced by a $300 supplement. Income increased 0.5% in July.

However, the economy is on track for record growth in the third quarter after a historic slump in the April-June period. Third-quarter GDP growth estimates are topping a 32% annualized rate. The economy contracted at a 31.4% pace in the second quarter, marking the deepest decline since the government started keeping records in 1947.

Consumers Showing Faith in Economy

The United States witnessed the worst decline in the second quarter since 1947. But people have not lost confidence in the economy’s strength and are willing to spend. Consumer confidence fell to a record low in the early months of the pandemic as travel froze up and shutdown orders forced many restaurants, bars, entertainment venues and other retailers to close. But life somewhat has started going back to normal, and consumer spending is improving.

We cannot, however, ignore that even though people are willing to spend on entertainment, travel, or holiday, there aren’t too many options given that the fear of the virus is preventing states to fully get back to normal functioning. So, consumer spending is likely to be more on essential commodities in the days to come.

Our Choices

Grocery Outlet Holding Corp. is a high-growth, extreme-value retailer of quality, name-brand consumables and fresh products that are sold through a network of independently owned and operated stores.

The company’s expected earnings growth rate for the current year is 54.4%. The Zacks Consensus Estimate for current-year earnings has improved 22% over the past 60 days.  Grocery Outlet Holding has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Lifetime Brands, Inc. is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop and bath accessories.

The company’s expected earnings growth rate for the current year is 53.3%. The Zacks Consensus Estimate for current-year earnings has improved 97.1% over the past 60 days. Lifetime Brands has a Zacks Rank #2 (Buy).

Ollie's Bargain Outlet Holdings, Inc. is a value retailer of brand name merchandise at drastically reduced prices. The company offers products principally under Ollie’s, Ollie’s Bargain Outlet, Good Stuff Cheap, Ollie’s Army, Real Brands Real Cheap!, Real Brands! Real Bargains!, Sarasota Breeze, Steelton Tools, American Way and Commonwealth Classics.

The company’s expected earnings growth rate for the current year is 54.6%. The Zacks Consensus Estimate for current-year earnings has improved 7.8% over the past 60 days.  Ollie's Bargain Outlet has a Zacks Rank #2.

Prestige Consumer Healthcare Inc. and its subsidiaries develop, manufacture, market, sell and distribute over-the-counter healthcare and household cleaning products in the United States, Canada, Australia and certain other international markets. 

The company’s expected earnings growth rate for the current year is 6.4%. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the past 60 days. Prestige Consumer Healthcare has a Zacks Rank #2.

Spectrum Brands Holdings Inc. offers a portfolio of leading brands in several product categories like residential locksets, plumbing, electric shaving and grooming products, personal care products, small household appliances, specialty pet supplies, and lawn, garden and home pest control products and repellents.

The company’s expected earnings growth rate for the current year is 25.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. Spectrum Brands has a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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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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Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
 
Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report
 
Ollies Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
 
Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report
 
Lifetime Brands, Inc. (LCUT) : Free Stock Analysis Report
 
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