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Bear of the Day: PLBY Group (PLBY)

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For a fleeting moment there, every stock that had potential to bring NFTs to market were en vogue. It did not matter what it was, as risk capital was trying to get ahead of the curve and buy the next biggest thing. It went way further than stoned apes. Today’s Bear of the Day was a stock that really had some promise in this budding market. It is one of the largest names in the publication business and was finally finding its way back out from under the bed. And trust me, I read it for the articles.

I am talking about PLBY Group (PLBY - Free Report) . The company operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. It offers sexual wellness products, such as products that enhance sexual experience, lingerie, bedroom accessories, intimates, and adult content; style and apparel products for men and women; gaming and lifestyle products, including digital casino and social games, and other home and hospitality offerings; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. The company offers its products under its flagship brand, Playboy. 

The bad news for investors is that Playboy is currently a Zacks Rank #5 (Strong Sell) in the Leisure and Recreation Products industry which ranks in the Bottom 30% of our Zacks Industry Rank. PLBY Group, Inc. operates as a pleasure and leisure company worldwide.

The numbers are not all bad here. In fact, I could make a good bull case built on revenue and EPS growth. Current year revenue growth calls for 41.95% year-over-year growth while next year is slated to come in at 21.2%. EPS growth looks just as good, if not better, with 123% growth for the current year and 104% growth for next year. So what gives?

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Image Source: Zacks Investment Research

Well, it’s the recent trend that is troubling. Taking a look at analysts’ estimates on Wall Street, the numbers have been contracting across the board. Our current year Zacks Consensus Estimate is off from 60 cents to 32 cents while next year’s number is off from 88 cents to 65 cents. That’s the reason for the Zacks Rank #5 (Strong Sell).

There are some stocks in the same industry which are still in the good graces of our Zacks Rank. Those include Zacks Rank #1 (Strong Buy) stocks Academy Sports and Outdoors (ASO - Free Report) as well as Clarus (CLAR - Free Report) .


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Clarus Corporation (CLAR) - free report >>

Academy Sports and Outdoors, Inc. (ASO) - free report >>

PLBY Group, Inc. (PLBY) - free report >>

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