4 Leisure Stocks Set to Trump Earnings Estimates This Season

Zacks Equity Research
·4 min read

The Zacks Leisure and Recreation Services industry participants’ are likely to reflect the impact of the coronavirus pandemic. In fact, the rising macroeconomic uncertainties and bare minimum revenue prospects compelled the industry players to withdraw their guidance.

The cruise industry has been driven to a standstill by the coronavirus-induced crisis. Major cruise operators like Royal Caribbean Cruises Ltd. RCL, Norwegian Cruise Line Holdings Ltd. NCLH and Carnival Corporation & Plc CCL have lost more than half of the market cap so far this year. Cruise companies commenced 2020 on a strong note. However, demand started declining in mid-February. Due to the COVID-19 pandemic, companies had to cancel sailings.

Furthermore, the leisure services industry is weighed down by high cost burden. The industry players generally work through multiple business models. The industry participants are also suspending share repurchase programs and dividend payouts in an effort to improve liquidity. Moreover, supply chain disruptions due the pandemic are likely to continue hurting the industry in the near term.

However, the Zacks Leisure and Recreation Products industry is likely to have benefited from robust demand for recreational products and golf business in third-quarter 2020. The companies that design, market, retail, and distribute products for the outdoor and recreation market are witnessing robust demand. Moreover, golf manufactures and boating suppliers are gaining from the ongoing coronavirus pandemic.

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 it 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 high chances 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.

Callaway Golf Company ELY will report third-quarter 2020 results. It has an Earnings ESP of +12.56% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings is pegged at 22 cents per share, suggesting a decline of 22.2% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Callaway Golf Company Price, Consensus and EPS Surprise

Callaway Golf Company Price, Consensus and EPS Surprise
Callaway Golf Company Price, Consensus and EPS Surprise

Callaway Golf Company price-consensus-eps-surprise-chart | Callaway Golf Company Quote

Planet Fitness, Inc. PLNT is scheduled to report third-quarter 2020 results on Nov 5. It has an Earnings ESP of +15.84% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings stands at 11 cents per share, suggesting a decline of 69.44% from the prior-year quarter.

Planet Fitness, Inc. Price, Consensus and EPS Surprise

Planet Fitness, Inc. Price, Consensus and EPS Surprise
Planet Fitness, Inc. Price, Consensus and EPS Surprise

Planet Fitness, Inc. price-consensus-eps-surprise-chart | Planet Fitness, Inc. Quote

Clarus Corporation CLAR is scheduled to report third-quarter 2020 results on Nov 9. The company has an Earnings ESP of +23.53% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for third-quarter earnings is pegged 23 cents per share, suggesting growth of 21.1% from the prior-year quarter.

Clarus Corporation Price, Consensus and EPS Surprise

Clarus Corporation Price, Consensus and EPS Surprise
Clarus Corporation Price, Consensus and EPS Surprise

Clarus Corporation price-consensus-eps-surprise-chart | Clarus Corporation Quote

MasterCraft Boat Holdings, Inc. MCFT is scheduled to report first-quarter fiscal 2021 results on Nov 9. The company has an Earnings ESP of +5.42% and a Zacks Rank #3. Further, the Zacks Consensus Estimate for first-quarter earnings is pegged 33 cents per share, suggesting a decline of 37.7% from the prior-year quarter.

MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise

MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise
MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise

MASTERCRAFT BOAT HOLDINGS, INC. price-consensus-eps-surprise-chart | MASTERCRAFT BOAT HOLDINGS, INC. Quote

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Carnival Corporation (CCL) : Free Stock Analysis Report
 
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
 
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
 
Callaway Golf Company (ELY) : Free Stock Analysis Report
 
Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report
 
MASTERCRAFT BOAT HOLDINGS, INC. (MCFT) : Free Stock Analysis Report
 
Clarus Corporation (CLAR) : Free Stock Analysis Report
 
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