Yahoo Finance The Zacks Analyst Blog Highlights BJ's Wholesale Club, International Game Technology, Wyndham Hotels & Resorts, Nexstar Media Group and Bowlero
For Immediate Release
Chicago, IL – January 18, 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: BJ's Wholesale Club BJ, International Game Technology IGT, Wyndham Hotels & Resorts WH, Nexstar Media Group NXST and Bowlero BOWL.
Here are highlights from Tuesday’s Analyst Blog:
5 Top Stocks to Gain From 9-Month High Consumer Sentiment
Consumer sentiment took a beating last year, as households had to bear a spike in inflation to a record high that, in due course, weighed on their real incomes and impacted their living standards. The coronavirus pandemic-led pent-up consumer demand and supply-chain disruptions drove prices of indispensable commodities through the roof.
However, inflation has lately started showing signs of cooling off. The U.S. Bureau of Labor Statistics noted that the consumer price index (CPI) rose 6.5% on a year-over-year basis in December, down from November's gain of 7.1%, and way less than June's 40-year high of 9.1%. Thus, the annual rate of increase in consumer prices has now declined for six consecutive months.
The CPI, on a month-over-month basis, also declined by 0.1% last month and registered its first drop since the beginning of the coronavirus pandemic in 2020. A sustained drop in gasoline prices was primarily responsible for bringing down the cost of living. Gasoline prices, in reality, were down 10% in December after soaring past $5 a gallon in mid-2022.
Thus, at present, lower concerns over inflation boosted consumers' sentiment in the United States.The University of Michigan's preliminary result showed that the consumer sentiment index increased to 64.6 in January from December's 59.7, and touched the highest level since April.Analysts had expected the index to increase to 60.7.
Similarly, the gauge assessing current economic conditions in the United States rose sharply to 68.6 this month from 59.4 in the prior month. The short-term expectations index also advanced to 62 from 59.9.
Nonetheless, consumer sentiment improved for the second successive month in January as inflation eased. And with an improvement in consumer sentiment, consumer discretionary stocks are poised to gain the most. This is because as consumers grew more hopeful about the U.S. economy amid a strong labor market, their spending is expected to improve, particularly on nonobligatory products and services.
We have, thus, highlighted five consumer discretionary stocks that are most likely to gain from solid consumer sentiment. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with 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. You can see the complete list of today's Zacks #1 Rank stocks here.
BJ's Wholesale Club provides perishable, general merchandise and other ancillary services. BJ currently has a Zacks Rank #2 and a VGM Score of A. The Zacks Consensus Estimate for its current-year earnings has moved up 5.6% over the past 60 days. BJ's expected earnings growth rate for the current year is 16.6%.
International Game Technology is engaged in the design, development, manufacture and marketing of casino-style gaming equipment, systems technology and game content. IGT currently has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 1.1% over the past 60 days. IGT's expected earnings growth rate for the current year is 519.4%.
Wyndham Hotels & Resorts provides a hotel and resort chain. WH currently has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.8% over the past 60 days. WH's expected earnings growth rate for the current year is 22.5%.
Nexstar Media Group currently owns, operates, programs, or provides sales and other services to television stations in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama, and New York. NXST has a Zacks Rank #1, at present, and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 1% over the past 60 days. NXST's expected earnings growth rate for the current year is almost 42%.
Bowlero is an owner and operator of bowling centers as well as the owner of the Professional Bowlers Association. BOWL currently has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 35.2% over the past 60 days. BOWL's expected earnings growth rate for the current year is almost 30.4%.
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
International Game Technology (IGT) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Nexstar Media Group, Inc (NXST) : Free Stock Analysis Report
Wyndham Hotels & Resorts (WH) : Free Stock Analysis Report
Bowlero Corp. (BOWL) : Free Stock Analysis Report
