Latest news with #ConsumerDiscretionary
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a day ago
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3 Consumer Stocks We Keep Off Our Radar
Consumer discretionary businesses are levered to the highs and lows of economic cycles. Unfortunately, the industry's recent performance suggests demand may be fading as discretionary stocks have pulled back by 4.4% over the past six months. This drop was discouraging since the S&P 500 returned 4.1%. A cautious approach is imperative when dabbling in these companies as many also lack recurring revenue characteristics and ride short-term fads. With that said, here are three consumer stocks we're passing on. iHeartMedia (IHRT) Market Cap: $264.8 million Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ:IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe. Why Do We Avoid IHRT? Flat sales over the last two years suggest it must innovate and find new ways to grow Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders iHeartMedia's stock price of $1.93 implies a valuation ratio of 0.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than IHRT. Topgolf Callaway (MODG) Market Cap: $1.70 billion Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells golf equipment and operates technology-driven golf entertainment venues. Why Do We Steer Clear of MODG? Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn't resonate with customers Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 22.6% annually Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Topgolf Callaway is trading at $9.23 per share, or 3.6x forward EV-to-EBITDA. If you're considering MODG for your portfolio, see our FREE research report to learn more. RE/MAX (RMAX) Market Cap: $161.7 million Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories. Why Do We Think RMAX Will Underperform? Demand for its offerings was relatively low as its number of agents has underwhelmed Earnings per share fell by 8.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Underwhelming 0% return on capital reflects management's difficulties in finding profitable growth opportunities At $8.39 per share, RE/MAX trades at 6.2x forward P/E. To fully understand why you should be careful with RMAX, check out our full research report (it's free). Stocks We Like More Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
- Business
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Superior Group (SGC) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Superior Group (SGC) closed at $10.63, marking a -1.02% move from the previous day. This change lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.74%. Shares of the uniform maker have appreciated by 7.51% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 4.15%, and the S&P 500's gain of 4.2%. Analysts and investors alike will be keeping a close eye on the performance of Superior Group in its upcoming earnings disclosure. The company is expected to report EPS of $0.05, up 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $134.2 million, up 1.86% from the prior-year quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $559.79 million. These totals would mark changes of -43.84% and -1.04%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Superior Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Superior Group currently has a Zacks Rank of #3 (Hold). Looking at its valuation, Superior Group is holding a Forward P/E ratio of 26.41. This denotes a premium relative to the industry average Forward P/E of 14.28. It is also worth noting that SGC currently has a PEG ratio of 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel was holding an average PEG ratio of 2.03 at yesterday's closing price. The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 11% of over 250 industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. 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 Superior Group of Companies, Inc. (SGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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5 days ago
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Sony (SONY) Outperforms Broader Market: What You Need to Know
Sony (SONY) closed at $24.41 in the latest trading session, marking a +1.79% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw an increase of 0.74%. Coming into today, shares of the electronics and media company had lost 7.34% in the past month. In that same time, the Consumer Discretionary sector gained 4.15%, while the S&P 500 gained 4.2%. Investors will be eagerly watching for the performance of Sony in its upcoming earnings disclosure. In that report, analysts expect Sony to post earnings of $0.24 per share. This would mark no growth from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.16 per share and revenue of $79.87 billion. These totals would mark changes of -5.69% and -6.09%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Sony. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Sony possesses a Zacks Rank of #3 (Hold). In terms of valuation, Sony is presently being traded at a Forward P/E ratio of 20.63. Its industry sports an average Forward P/E of 34.67, so one might conclude that Sony is trading at a discount comparatively. Meanwhile, SONY's PEG ratio is currently 11.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Audio Video Production industry held an average PEG ratio of 11.52. The Audio Video Production industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. 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 Sony Corporation (SONY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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5 days ago
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Is the Q2 Earnings Bar Set Too Low?
The early Q2 earnings results, mostly from the Finance sector, have been better than expected. Most of these banks and brokers are not only easily beating consensus estimates, but also providing a favorable outlook for the coming periods. Since banks are an economically sensitive sector whose operations touch all types of consumers and businesses, this favorable view of underlying business trends by the banks provides a reassuring read-through for the rest of the Q2 earnings season. Estimates for Q2 had come under severe pressure after the quarter got underway, with the announcement of reciprocal tariffs in early April prompting analysts to materially lower their earnings expectations. The revisions trend stabilized later in the quarter, with estimates for the Tech sector actually nudging up after coming down earlier in the quarter. Estimates had actually modestly gone up for three sectors – Consumer Discretionary, Utilities and Aerospace. Of these three sectors, the favorable revisions trend for the Utilities sector is tied to improving demand trends as a result of AI related demand from datacenters while the positive revisions trend for the Consumer Discretionary sector is solely due to favorable revisions for media players like Disney DIS, Netflix NFLX and others. The magnitude of negative revisions to Q2 estimates has been bigger than most other post-Covid periods. This suggests to us that the bar is likely low enough that companies will easily jump through them. But more than companies' ability to beat consensus Q2 estimates, it will company guidance for Q3 and beyond that will determine the market reaction to the results. For more details about the Q2 earnings season and expectations for the coming periods, please check out our weekly Earnings Trends report here >>>Q2 Earnings Season Kicks Off Positively: A Closer Look 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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Is Nuveen ESG Large-Cap Growth ETF (NULG) a Strong ETF Right Now?
Launched on 12/13/2016, the Nuveen ESG Large-Cap Growth ETF (NULG) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market. What Are Smart Beta ETFs? For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment. Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns. Fund Sponsor & Index The fund is managed by Nuveen, and has been able to amass over $1.66 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, NULG seeks to match the performance of the TIAA ESG USA Large-Cap Growth Index. The Nuveen ESG USA Large-Cap Growth Index composes of equity securities issued by large capitalization companies listed on U.S. exchanges. Cost & Other Expenses Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same. Operating expenses on an annual basis are 0.26% for NULG, making it on par with most peer products in the space. NULG's 12-month trailing dividend yield is 0.14%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Information Technology sector - about 48.9% of the portfolio. Consumer Discretionary and Telecom round out the top three. Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 13.14% of the fund's total assets, followed by Broadcom Inc (AVGO) and Alphabet Inc (GOOG). The top 10 holdings account for about 42.74% of total assets under management. Performance and Risk The ETF has gained about 10.41% so far this year and it's up approximately 13.47% in the last one year (as of 07/17/2025). In the past 52-week period, it has traded between $70.54 and $94.78 NULG has a beta of 1.18 and standard deviation of 20.87% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk . Alternatives Nuveen ESG Large-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well. Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF has $10.76 billion in assets, iShares ESG Aware MSCI USA ETF has $13.83 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. 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 Nuveen ESG Large-Cap Growth ETF (NULG): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
